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Forums - Sony Discussion - Sony closer to breakeven on PS3

jneul on 22 January 2010

hehe this is good news to me, i hope it does break even this year.



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geddesmond2 on 22 January 2010

Well if it costs them 330 dollars to produce and the PS3 sells for 300 euros in europe which equals 420 dollars and the PS3 sells the most in europe, then I think its safe to say that the PS3 is now making a profit. Correct?



Shorty11857 on 22 January 2010
geddesmond2 said:
Well if it costs them 330 dollars to produce and the PS3 sells for 300 euros in europe which equals 420 dollars and the PS3 sells the most in europe, then I think its safe to say that the PS3 is now making a profit. Correct?

You're forgetting sales tax, which is at least 15% (EU Minimum, but can be higher in other countries); so the most money they can make would be $365 less in some European countries; if you factor in retailer cut, shipping costs; they probably break-even in Europe overall, maybe a slight loss



papflesje on 22 January 2010

21% over here even :)



Simulacrum on 22 January 2010

So...If 1 person buys maybe dualshock controller,4-7 games,maybe some PSN stuff/games, Ps3 should make profit easily?
And since Sony bundles its games heavily, it should make profit?



 

 

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johnsobas on 22 January 2010
Shoestar said:
johnsobas said:
Shoestar said:
letsdance said:
johnsobas said:
Shoestar said:
Considering each retailer makes at least $30-$50 from the sale of one console, I think sony is losing at least $80-$100 in the US. (if Boxing and controllers are included).

In the UK and Europe, Sony might be close to breaking even as in Euro, the Console would cost 268 Euros to make but sells 250-300 Euros depending on the Region.


no the margins for retailers are very small, 5-10$ max.  There are some things not included in these estimates like shipping, controllers, boxing etc. 

controllers are included at under 15 dollars.

 

Hmmm... I'm not sure about the $5-10 per console... I know for sure that on game sales it's $4-$10 depending on price and recency of the game itself. I believe that for shelf space of a console, $30 per console most suited for retailers taking in consideration the service fees involved.

 

If the controller price is included in the 'other' costs... that leaves less than $60 for the body and other electronics such as board, hdmi/ethernet ports, buttons, Sound eqs etc...

you have it backwards, software and accessories are where retailers make the money.  It's very difficult to find numbers, i did find that Nintendo had a 8$ margin for the wii at launch and that was considered high.  Retailers don't discount consoles because the margins are so thin.  If software margins were that thin retailers wouldn't buy software, because the risk is so high you would have to sell it at full price or you would lose money.

 

Really? I didn't know that... still doesn't sound logical as it costs more in shelf space.

That makes sense if the console was just a one and done thing, but it's not.  Retailers are glad to stock the consoles for a low margin because people usually buy games and/or accessories when they buy a console. 



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Zlejedi on 22 January 2010

NJ5 said:
letsdance said:
I also heard isupply goes off what the part goes for (or would go for if it were availble) at retail. So basically doesnt take into consideration bulk discounts.

No way... where can you buy 512 MB of memory for $10 ? Or a Blu-ray drive for $66 ?

 

http://www.newegg.com/Product/Product.aspx?Item=N82E16827106325&cm_re=blu-ray-_-27-106-325-_-Product

Full Blu-ray drive for 60$ - price for consumer and made for PC so with it's own case etc.

BR drive for ps3 bought in bulk should be at least few $ cheaper.

 



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NJ5 on 22 January 2010
Zlejedi said:

NJ5 said:
letsdance said:
I also heard isupply goes off what the part goes for (or would go for if it were availble) at retail. So basically doesnt take into consideration bulk discounts.

No way... where can you buy 512 MB of memory for $10 ? Or a Blu-ray drive for $66 ?

 

http://www.newegg.com/Product/Product.aspx?Item=N82E16827106325&cm_re=blu-ray-_-27-106-325-_-Product

Full Blu-ray drive for 60$ - price for consumer and made for PC so with it's own case etc.

BR drive for ps3 bought in bulk should be at least few $ cheaper.

 

No offense, but you're a bit late to the party. The discussion moved on quite a bit since that post...

In the end some of these items look too expensive (for example the BD drive), while others look too cheap in comparison. I think iSuppli is full of it, and I don't know if the real cost is above or below what they claim.

 



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binary solo on 22 January 2010

Taking off our version of sales tax the PS3 retails here for US$378 that's a $40 excess over the PS3 manufacturing cost. That $40 will be chewed through pretty quickly with packing, distribution, controller, cables, marketing, retailer cut and subsidising the US consumer.

If the 120Gig HDD is $38 whats the 250Gig? $50? $60? They are sure breaking even, or better, with the $250Gig sku.



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Hephaestos on 22 January 2010
letsdance said:
NJ5 said:
letsdance said:
I also heard isupply goes off what the part goes for (or would go for if it were availble) at retail. So basically doesnt take into consideration bulk discounts.

No way... where can you buy 512 MB of memory for $10 ? Or a Blu-ray drive for $66 ?

 


newegg. and that obviously is not bulk. and its 512 MB for 40 dollars... see the quantity column.

not if you add up the value of components.... it's 10$ for the quantity 4....

 

that or these guys can't count... which they can't with a cost of 336 they say that it's 31 over 299.... ermmmmm



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