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Forums - Sony - Sony Losing $36 per PS3 Slim

  1. How do they know? This is soooo hard to calculate
  2. 299 all for Sony? I don't think so. Retailer / logistics need to be paid --> $280 for Sony seems more realistic. I have no clue how to calculate for bundles
  3. Sony said they want to break even in April 2010, right?
  4. If this is true, imagine how much money MS must make with the $299 Elite. No BluRay, no WiFi, no bluetooth, no cell (^^) etc. Could it be that MS makes something like $50 with every Xbox Elite sold?

--> I can't wait for next financial results!

I am really looking forward to see MS report, not just because of the Xbox 360 during the holidays. I also want to see how much profit Windows7 made.

Sony is another great thing to follow. Could they post black numbers for the very first time this generation or will they use red ink again.

Nintendo is kicking ass, but we already know this :D



Imagine not having GamePass on your console...

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I don't trust iSuppli, these are the people who posted negative sales for the Wii.



I'm also expecting Sony's improved marketshare to help out with SW. The expanding PSN, online rentals, and upcoming tiered service should mean a lot more revenue, which would be what would give sony the profit it has been waiting for



On the phats the power supply gets very hot after a few hours of play. Good to see they are using a weaker one now.



Is Isuppli a reputable company?



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Better than the 200 usd they used to lose on every unit.



Cypher1980 said:
If the 36 bucks is for manufacturing then I reckon that they lose about 60 bucks all told for every PS3 sold at retail

Advertising and Shipping dont come cheap.

Its a shame they arent profitable as I dont think any company will ever take the risk Sony did this gen ever again.

Why oh Why when companies take these huge risks do they always manage to screw up somehow.

Advertising=expensive

Shipping=cheap

 

They are shipping the PS3s with ships and not planes. Just an example one Container from HongKong to Hamburg costs 800 Dollar. And in one container fits easily a couple of thousend PS3s and Trucks are inexpensive too. So shipping costs are almost nothing they are maximum 1-2 Dollar per PS3. just call your local Haven, if there is one and say you want to move from where you live to the other part of the planet. How much would that be and then calculate how much PS3s fit in one container.

 

OT:

 

Shipping+package is almost nothing advertising is expensive but if you split the costs for example 200 Million Dollars world wide on 30 Million PS3s you have 7 Dollar per console. But taxes are expensive and ofcourse customs are expensive. And ofcourse the 10 Dollar win per retailer. PS3 package is maybe 50 Cent max but lets take 1 Dollar.

So we have 40 Dollar producing 10 Dollar retailer 10 Dollar Shipment and Package and Advertising. 60 Dollar loss in NA.

 

But a PS3 in Japan costs 29000 Yen (320 Dollar) and a PS3 in USA costs 27000 Yen (300 Dollar) and a PS3 in Europe costs 39000 (435 Dollar) Yen. And EU sales are as big as NA sales for PS3. Sony loses in Japan and US but earns in Europe. If they lose about 5500 Yen (60 Dollar) per Console in NA, 3500 Yen (40 Dollar) in Japan and earn 6500 Yen (70 Dollar) in Europe the loss is not as big as it seems to be.

 

1 Dollar is 90 Yen 

1 Euro is 130 Yen

 

Ofcourse this is just speculations but Sony calculate such factors. To really make a better calculation I need to know how much Sony is paying for taxes and customs per PS3.

 

This calculation is based on Yen if you recalculate this from another point of view the calculation should be slightly different.

 

Ofcourse there are fluctuations but in others others the price for the PS3 is even higher then in Europe. And the parts where they dont have Euro in Europe the prices are higher too.

Sony is mainly loosing in NA and that is due to the weak dollar. Sony is loosing in Japan too but in US they sell 3 times more PS3s and the price is even lower.

I would appreciate it if someone has data I dont have so I could rethink everything again.

 

 

Edit: Lol during my research on Amazon Jp I noticed that the PS3 FF13 lighting edition costs 670 Dollar.



Would isuppli know how much Sony were paying per part, or would they just take a guess(i.e. book minus % off for bulk)?  And would they take into account that Sony could have signed long term preferred supplier/manufacturer deals to lower costs?  I can't see how these type of things can be that accurate really unless you have the data from Sony or all the suppliers(which i'd guess would be confidential).

 

Shipping doesn't cost very much, and neither does packaging.  Advertising they'll spend loads on but you can't put that against the cost of the hardware.

 

Losing money on hardware isn't a big issue anyway, loads of companies in various industries do it and make the money on the software, ink, phone plan etc.



Well $299 in US dollars = $413 NZ. Current retail in NZ is $599 NZ. The difference there being $186 NZD. This means SOny are selling the PS3 here for about $134 more than what it's being sold for in the USA. Minus the $36 materials cost, and the retailer markup of $10 and we have $88 for Sony to play with before. You think the controller, shipping and distribution are $88 per console? I doubt it.

And we aren't the most expensive PS3 country in the world. I believe in US dollar terms PS3 is more expensive in Aussie.

SO yeah, Sony is already making a profit on PS3 in some countries. Just not in Japan, the USA, UK or probably the Eurozone. Sure, the biggest markets, but a profit is being made in some places.



“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell

"When the power of love overcomes the love of power, the world will know peace."

Jimi Hendrix

 

binary solo said:
Well $299 in US dollars = $413 NZ. Current retail in NZ is $599 NZ. The difference there being $186 NZD. This means SOny are selling the PS3 here for about $134 more than what it's being sold for in the USA. Minus the $36 materials cost, and the retailer markup of $10 and we have $88 for Sony to play with before. You think the controller, shipping and distribution are $88 per console? I doubt it.

And we aren't the most expensive PS3 country in the world. I believe in US dollar terms PS3 is more expensive in Aussie.

SO yeah, Sony is already making a profit on PS3 in some countries. Just not in Japan, the USA, UK or probably the Eurozone. Sure, the biggest markets, but a profit is being made in some places.

What are importing costs like in New Zealand, though?