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Forums - Sony Discussion - Sony closer to breakeven on PS3

STEKSTAV on 21 January 2010

First. Wasnt this posted like 2 months ago.. atleast.

Second. Advertisment, boxing etc is not calculated towards hardware profits.



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letsdance on 21 January 2010
Grimes said:
letsdance said:
Grimes said:

Keep in mind iSuppli is the same firm that wrote this gem. Their analysis on the Wii is only going to be 40-50 million give or take. Nobody is perfect right?

And BTW, the person who wrote this article is a key analyst for iSuppli to this day.

iSuppli: Wii To Lead Hardware Race In 2008, PS3 By 2011

The firm says the PlayStation 3 in 2011 will account for 35.4 percent of the installed base (38.4 million), while the Wii will take 34.8 percent (37.7 million) and the Xbox 360 will be at 29.8 percent (32.3 million).

 


and ioi was half a million off on the ps3 in 2007... lets not listen to him anymore while we're at it.

Half a million, 50 million. It's all the same I guess.


half a million with data provided in periods that are currently happening with a total sales of... what 10 million? Yeah... I say thats worse. oh... yeah... it was only for the last 3 months too... npd and sonys financials showed ioi being completely off.



letsdance on 21 January 2010
STEKSTAV said:
First. Wasnt this posted like 2 months ago.. atleast.

Second. Advertisment, boxing etc is not calculated towards hardware profits.


No. not advertising... but boxing? in no link (and ive followed these estimates since ps3 launch) have said cables, controllers, or boxing isnt included. The only people ive seen claim this are random forum goers. and it just so happens that controllers are included... that makes me question the cables and boxes... especially since isuppli was so close last time.

(they were only about 25 dollars off of sonys statement which came 5 months after their estimates.)

Grimes on 21 January 2010
letsdance said:
Grimes said:
letsdance said:
Grimes said:

Keep in mind iSuppli is the same firm that wrote this gem. Their analysis on the Wii is only going to be 40-50 million give or take. Nobody is perfect right?

And BTW, the person who wrote this article is a key analyst for iSuppli to this day.

iSuppli: Wii To Lead Hardware Race In 2008, PS3 By 2011

The firm says the PlayStation 3 in 2011 will account for 35.4 percent of the installed base (38.4 million), while the Wii will take 34.8 percent (37.7 million) and the Xbox 360 will be at 29.8 percent (32.3 million).

 


and ioi was half a million off on the ps3 in 2007... lets not listen to him anymore while we're at it.

Half a million, 50 million. It's all the same I guess.


half a million with data provided in periods that are currently happening with a total sales of... what 10 million? Yeah... I say thats worse. oh... yeah... it was only for the last 3 months too... npd and sonys financials showed ioi being completely off.

I can't argue with this logic. Would be a complete waste of time.



Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.

letsdance on 21 January 2010

no you cant argue with it because your initial point is nullified.



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Euphoria14 on 21 January 2010
Kasz216 said:
NJ5 said:
letsdance said:
NJ5 said:
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...

 


Id assume itd be 40 dollars for the mem... considering in the "quantity" column there is a 4,

 

In that case it looks too expensive. Lol. And the hard drive looks too cheap.

Anyway, it seems way too weird to use retail prices to calculate a manufacturing cost, so I find it hard to believe.

 

There cost breakdowns have NEVER been accurate.  Though they've always undershot not overshot how much the PS3 cost.

Keep in mind this comes from the same people with the "declining wii userbase" chart.

I thought that chart respresented active userbase and not overall sales totals.



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STEKSTAV on 21 January 2010
letsdance said:
STEKSTAV said:
First. Wasnt this posted like 2 months ago.. atleast.

Second. Advertisment, boxing etc is not calculated towards hardware profits.


No. not advertising... but boxing? in no link (and ive followed these estimates since ps3 launch) have said cables, controllers, or boxing isnt included. The only people ive seen claim this are random forum goers. and it just so happens that controllers are included... that makes me question the cables and boxes... especially since isuppli was so close last time.

(they were only about 25 dollars off of sonys statement which came 5 months after their estimates.)

Boxing is the same as advertisment. Controllers and cables, yes, they are apart of the hardware price of 299. But the process of boxing, shipping, advertisment etc are funded with money made, stored or borrowed. When calculating if X hardware is profitable you look at what it sells for and subtract the cost it took to make X hardware. 3 - 2 = 1.



Tridrakious on 21 January 2010

At this loss it's easier for Sony to make a profit on the overall PS3 platform (games, peripherals, accessories, etc).



numonex on 21 January 2010

However you spin it a loss is still a loss. Anyway 4 or 5 billion dollars in losses on PS3 hardware since launch will more than likely never be fully recoved by the end of the generation on PS3 hardware sales alone. DLC, software and accessory sales are sold at considerable profits and make up for some of the hardware losses.

Thank god, Sony CE makes a lot of profits from electronic sales, music industry - record labels, film rights, Blu-Ray and DVD sales, etc.

BTW: How credible is the source ISuppli in regards to estimating the costs of the PS3? These numbers seem to me best guess cost estimates. Unless Sony states its official than we can not take these numbers seriously.



numonex on 21 January 2010

I remember reports saying the PS3 was said to be selling at break a year ago. Sony decided to launch the PS3 Slim last year to further save on manufacturing costs and increase sales of the PS3 to expand its market share.

What about advertising and marketing and distribution and storage costs? The foreign exchange rates would result in the PS3 being sold at profits and losses in different regions. Maybe this is a cost estimate for the PS3 in the US only?