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Forums - Sony Discussion - Sony closer to breakeven on PS3

letsdance on 21 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 ?

 


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



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letsdance on 21 January 2010
Kasz216 said:

The previous Isuppli reports never matched up with what Sony said, so why should we believe their new cost analysis report?

They said something like $30 when Sony publicily stated 80 or something similar.

Either way, this is starting to feel like that one equation... where the two lines get closer and closer together yet somehow never intersect.


Actually... isupply over estimated last time. Sony CFO said they lost about 10% per ps3 sold when isupply said they were losing about 60 dollars.



NJ5 on 21 January 2010
letsdance said:
NJ5 said:
Including the controller, box, manuals, cables, shipping etc. they're probably losing more than $50 per unit.


where did you hear these arent included? I see a colum for "other parts" and id assume those fall into that.

I don't think so, at least it has been usually mentioned in earlier iSuppli discussions. I'll post a source if I can find one.

 



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scottie on 21 January 2010

inb4 people forget that these estimates dont take into account things like manufacturing, transport costs and a cut for retailers



mario64 on 21 January 2010

Wow, there goes the 2009 Sony doom thread template : "But PS3 is losing too much money"




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NJ5 on 21 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.

The Blu-Ray drive, apparently yeah (though it's like the cheapest one). But the memory and especially the hard drive, those prices seem lower than retail (and newegg confirms).

This doesn't really give me a lot of confidence on iSuppli's data...

 



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mario64 on 21 January 2010
scottie said:
inb4 people forget that these estimates dont take into account things like manufacturing, transport costs and a cut for retailers

Manufacturing is included, it's written.



Bladeforce on 21 January 2010

so sony have 40,000,000 at a loss of on average $100 each hmmm 4 billion dollars...so at a profit soon of say $20 a system it will only take another 200,000,000 sales to break even overall!!



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Twistedpixel on 21 January 2010

Assuming say for example that these figures are 100% correct.

They still have to consider at least 3% margins for retailers $10-15

Shipping per box is easily another $5

So assuming this is correct they would earn about $285 and it would cost them $341 to get it into the shop which is still a difference of $56. Then you have to consider advertising, research and development to make the console slimmer, and all other corporate level overhead. Even $200M worth of advertising is another $15 per console sold over 13M consoles.

To break even they would have to sell the console at retail at less than it costs to manufacture considering other expenditure. Im not holding my breath here considering the profitability promises they have made and broken over the last couple of years. I'll wait until I can see it with my own two eyes on a balance sheet.

 



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letsdance on 21 January 2010
scottie said:
inb4 people forget that these estimates dont take into account things like manufacturing, transport costs and a cut for retailers


I clearly see a line for manufacturing and testing....