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Forums - Sony - Sony Losing $36 per PS3 Slim

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.

The 120gb is $479aud($577nzd approx) in Aussie and $544nzd here (using DSE online price), so it's a bit more expensive over the ditch.  I thought kiwis got shafted the most on prices but seems the Aussies get it worse.

 

I think they make good profits in the EU also, as the price is pretty similar to what we pay down here.



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Khuutra said:
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?

New Zealand eliminated pretty much all import tariffs in the 1980s. There is basically very little point in buying duty free in NZ because there is no duty any more.

However I must seek and provide some clarification. Just about every country has sales taxes of varying descriptions. IN Aussie and NZ it's called GST (goods and services tax). The retail price quoted in ads, on websites, in junk mail and on ticket prices all include GST. That means the price you see is the price you pay. When PS3 is advertised for $299, in the USA does that include or exclude sales taxes? In the EU does 299 Euros include sales taxes? How about VAT in the UK with the 245 price?

So in my above calculus I forgot the GST component which is substantial. So out of the $88 you've got to consider the 12.5% GTS which actually reduces the surplus to $13.12. Now that amount certainly doesn't cover the controller and shipping/ distribution. So I retract my earlier statement, Sony is still making a loss here.



“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:
Khuutra said:
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?

New Zealand eliminated pretty much all import tariffs in the 1980s. There is basically very little point in buying duty free in NZ because there is no duty any more.

However I must seek and provide some clarification. Just about every country has sales taxes of varying descriptions. IN Aussie and NZ it's called GST (goods and services tax). The retail price quoted in ads, on websites, in junk mail and on ticket prices all include GST. That means the price you see is the price you pay. When PS3 is advertised for $299, in the USA does that include or exclude sales taxes? In the EU does 299 Euros include sales taxes? How about VAT in the UK with the 245 price?

So in my above calculus I forgot the GST component which is substantial. So out of the $88 you've got to consider the 12.5% GTS which actually reduces the surplus to $13.12. Now that amount certainly doesn't cover the controller and shipping/ distribution. So I retract my earlier statement, Sony is still making a loss here.

In the US and Canada sales tax is excluded, but I cannot speak as to any other territory.



So what exactly do you pay in US or canada for a PS3 ? 299 Dollar Plus Taxes ? So the 99 Dollar Ps2 is more like 115 Dollar in NA ? In Europe all prices are always with taxes if you see a price thats exactly what you pay. Includes Amazon taxes in NA ?

I still forget about that. So how high is the tax in US in average ? And how does it work if you order something from Amazon US if you are living in Europe ? Every State has different taxes but what Taxes you have to pay if you import it ? I know that you can buy goods for 500 Euro without paying Duty.

So a PS3 cosst actualy about 330-340 Dollar in NA but Sony gets only 300 and still 435 Dollar in Europe but Sony gets only 380-390 Dollar from it.




And about shipping costs: Have people figured out about that that is? I'm guessing in a std 40 ft container you'd get about 1500 slim boxes (probably would have been about 1200 phats). Last time I enquired about container rates from NZ to US it was about $15000, though I can't remember the currency I was quoted. It was a few years ago too, well before the price of oil skyrocketed. I'm guessing maybe $20K to get a container from one end of the pacific to another. That makes it about $13 per console to get it from China to NZ. Pretty much means by the time the console hits our shores it's at dead even without the controller factored in. Seems like Sony are giving the controller away for free here, and probably a few bucks on top. If you buy a second controller, which is probably being sold at 250% of cost you've helped Sony not make a loss with your console purchase (here in NZ at least).



“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

 

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Taxes can range quite a bit, it's a state to state thing here. In Minnesota it starts at 6.5% and I pay 10% in Minneapolis (Due to the some downtown specific taxes), but I'm guessing you could figure 5 - 12% in the U.S.



CommonMan said:
Taxes can range quite a bit, it's a state to state thing here. In Minnesota it starts at 6.5% and I pay 10% in Minneapolis (Due to the some downtown specific taxes), but I'm guessing you could figure 5 - 12% in the U.S.


DAMN....10%...that's crazy!



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

If Sony made a new SKU with 1TB for $499, wouldn't they turn profit off the PS3?..



heruamon said:
CommonMan said:
Taxes can range quite a bit, it's a state to state thing here. In Minnesota it starts at 6.5% and I pay 10% in Minneapolis (Due to the some downtown specific taxes), but I'm guessing you could figure 5 - 12% in the U.S.


DAMN....10%...that's crazy!


LOL! Yeah, when I go buy up my Slim later this month you can bet your ass it won't be from the downtown Target!



36 dollars is not that bad they will make all there money back on selling games



VITA 32 GIG CARD.250 GIG SLIM & 160 GIG PHAT PS3