Sony is no longer losing money on each PS3 sale!

http://en.wikipedia.org/wiki/PlayStation_3#Sales_and_production_costs

"Since the system's launch, production costs have been reduced significantly as a result of phasing out the EE chip[65] and falling hardware costs.[66][67] The cost of manufacturing Cell microprocessors has fallen dramatically as a result of moving to the 65nm production process[68][67] and Blu-raydiodes being cheaper to manufacture.[66][69] As of January2008, each unit costs around $400 to manufacture."

They aren't losing $250 per unit any more! They aren't making much either lol but still it's good news. Yay for Sony! Maybe they'll be more in liberty to drop the price of it some more by the end of the year when I plan to buy one of these :)

Sounds good, but it is Wikipedia...Prinze

There's an article about this here on gamespot as well... :roll:

Hey guys! Let's predict when and how much the next price drop will be!

Them not losing money is actually a good thing,

more money, means they have more disspossible income to spend on making arcs like The Agency and Home better, it also means there's a chance even more free games will come in the future,

plus, it means they won't lose so much they pull the system, and we all end up with a bluray player (which is nice) but no game support (not so nice).

[QUOTE="Prinze"]Sounds good, but it is Wikipedia...GreenGoblin2099

There's an article about this here on gamespot as well... :roll:

QFT

it has been posted by a few places now

They are still losing money.

A) they don't sell the systems for 400$ to the retailers

B) Shipment cost are not included in the manufacturing cost

C) Not all system cost the same.

They could be making up the money in Europe/Australia though because they systems are overpriced over here.

They are still losing money.

A) they don't sell the systems for 400$ to the retailers

B) Shipment cost are not included in the manufacturing cost

C) Not all system cost the same.

They could be making up the money in Europe/Australia though because they systems are overpriced over here.

Krigon

Point is, they are not losing a straight 250$ per unit made/sold anymore. Big big BIG plus as it contributed to a $2 billion dollar loss for Sony in the last year or so. Sony never really plans to make money off their consoles, it's the games. It's the same business model they used for PS2 and was widely successfull. (as you can see the PS2 still outsells the XBOX360, sadly, due to it's low price and 3000 game count) Everyone thought the PS3 would just bankrupt Sony and flop or get discontinued. But it's the PS2 all over again. And in a few years this puppy will be the best console out there due to it's intense hardware which will definately last through multiple generations of new age gaming, and by then all the developers would have learned to properly code for the cell processor. I'm definately buying one of these by summer time. Hopefully there will be another price drop by then :)

They arnt losing money on each console sold were i live

It cost £350 for a 40GB (just over $700 usd)

They arnt losing money on each console sold were i live

It cost £350 for a 40GB (just over $700 usd)

ukillwegrill

When will people from Europe understand the concept of VAT - while they might still make money that isn't the amount that Sony see's

Separately - Bloomberg came out over four months ago and said Sony wasn't loosing money on the PS3 60gb anymore.... and that was without 65nm ($600 price point) - you are already seeing the price drops from them not loosing much money anymore...... there won't be another one for awhile

This is great look out XBOX360. Its gonna be a tough ask to catch the Wii, but as long as the PS3 beats the 360 im happy. I mean i have both a Wii and PS3 so i wish them both the best.

Go Sony and Nintendo!!bubblepaul

same here

[QUOTE="ukillwegrill"]

They arnt losing money on each console sold were i live

It cost £350 for a 40GB (just over $700 usd)

svenskamerikan

When will people from Europe understand the concept of VAT - while they might still make money that isn't the amount that Sony see's

Separately - Bloomberg came out over four months ago and said Sony wasn't loosing money on the PS3 60gb anymore.... and that was without 65nm ($600 price point) - you are already seeing the price drops from them not loosing much money anymore...... there won't be another one for awhile

TBH i dont give a damn if u had to pay so much u would be upset

[QUOTE="svenskamerikan"][QUOTE="ukillwegrill"]

They arnt losing money on each console sold were i live

It cost £350 for a 40GB (just over $700 usd)

ukillwegrill

When will people from Europe understand the concept of VAT - while they might still make money that isn't the amount that Sony see's

Separately - Bloomberg came out over four months ago and said Sony wasn't loosing money on the PS3 60gb anymore.... and that was without 65nm ($600 price point) - you are already seeing the price drops from them not loosing much money anymore...... there won't be another one for awhile

TBH i dont give a damn if u had to pay so much u would be upset

VAT's like around 20%, right? I thought I read that the price difference was more than what VAT would add. But yeah, Europe (and the poor Aussie's)get's reamed.

Dude okay, how many games does the average Playstation owner end up having? Probably over a dozen ATLEAST. When you invest in a console that expensive you will want to use it to the max (i.e. tons of games, Blu-ray movies etc) So if you count in say a dozen games @ $60 a pop that is already $720, minus whatever goes to the game dev's and the rest Sony keeps. So sony produces a PS3 for 400$, sells for 400$, minus whatever the vendor takes and you are left with say a resulting pay of $300 for Sony for the PS3 and then say 400$ for the games. That's already 700$ for a 400$ console production cost. Then don't forget Blu-Ray movies on top of that. So in the end, yes, Sony is now making a good profit off each console. And people will keep buying games as the years roll on, and the console will cost even cheaper to make, and more will buy the console cuz of price drop and more games. So yes, Sony has succeeded with the PS3, even though it had a very very bad start.

And tons of exclusives like MGS4 and God of War 3 are coming this year! w00t!

Dude okay, how many games does the average Playstation owner end up having? Probably over a dozen ATLEAST. When you invest in a console that expensive you will want to use it to the max (i.e. tons of games, Blu-ray movies etc) So if you count in say a dozen games @ $60 a pop that is already $720, minus whatever goes to the game dev's and the rest Sony keeps. So sony produces a PS3 for 400$, sells for 400$, minus whatever the vendor takes and you are left with say a resulting pay of $300 for Sony for the PS3 and then say 400$ for the games. That's already 700$ for a 400$ console production cost. Then don't forget Blu-Ray movies on top of that. So in the end, yes, Sony is now making a good profit off each console. And people will keep buying games as the years roll on, and the console will cost even cheaper to make, and more will buy the console cuz of price drop and more games. So yes, Sony has succeeded with the PS3, even though it had a very very bad start.

And tons of exclusives like MGS4 and God of War 3 are coming this year! w00t!

HunidRacks

I have not spent that much on my ps3. I have 4 games for it, R&C, warhawk, motorstorm and COD 4, but I traded in resistance, and wil trade in R&C.

I have spent around £160 so far, as i hav e traded in a ps3 game and some psp games.

though its good sony is making money.

[QUOTE="ukillwegrill"][QUOTE="svenskamerikan"][QUOTE="ukillwegrill"]

They arnt losing money on each console sold were i live

It cost £350 for a 40GB (just over $700 usd)

mbrockway

When will people from Europe understand the concept of VAT - while they might still make money that isn't the amount that Sony see's

Separately - Bloomberg came out over four months ago and said Sony wasn't loosing money on the PS3 60gb anymore.... and that was without 65nm ($600 price point) - you are already seeing the price drops from them not loosing much money anymore...... there won't be another one for awhile

TBH i dont give a damn if u had to pay so much u would be upset

VAT's like around 20%, right? I thought I read that the price difference was more than what VAT would add. But yeah, Europe (and the poor Aussie's)get's reamed.

I understand VAT, and I live in the UK, in Europe. stop with the sweeping statements, OK?

[QUOTE="Prinze"]Sounds good, but it is Wikipedia...GreenGoblin2099

There's an article about this here on gamespot as well... :roll:

still waiting for a reliable source... lol

they wouldnt sell it if they lost money-_-

[QUOTE="GreenGoblin2099"]

[QUOTE="Prinze"]Sounds good, but it is Wikipedia...shroom76

There's an article about this here on gamespot as well... :roll:

still waiting for a reliable source... lol

they wouldnt sell it if they lost money-_-

Of course they would, and they already did. Google for the endless articles on how when the PS3 first launched it cost $850 to produce and they sold it for $250. They already lost $2 billion on the PS3 in the last year or so.

And for the guy who said he only had 4 or 5 games. That's so far, but in the long term you will end up with more. That's what I meant, the average Playstation owner will end up with a decent sized library of games. And whether or not you will sell them is irrelevant since Sony already got their money from you for the intital sale of the game. Point is in the end the game sales will accumulate to more than make up for the money lost from the console.

ROK ON04JETTA

[QUOTE="mbrockway"][QUOTE="ukillwegrill"][QUOTE="svenskamerikan"][QUOTE="ukillwegrill"]

They arnt losing money on each console sold were i live

It cost £350 for a 40GB (just over $700 usd)

NinjaMunkey01

When will people from Europe understand the concept of VAT - while they might still make money that isn't the amount that Sony see's

Separately - Bloomberg came out over four months ago and said Sony wasn't loosing money on the PS3 60gb anymore.... and that was without 65nm ($600 price point) - you are already seeing the price drops from them not loosing much money anymore...... there won't be another one for awhile

TBH i dont give a damn if u had to pay so much u would be upset

VAT's like around 20%, right? I thought I read that the price difference was more than what VAT would add. But yeah, Europe (and the poor Aussie's)get's reamed.

I understand VAT, and I live in the UK, in Europe. stop with the sweeping statements, OK?

I stop making sweeping statements when people start including facts in their posts. For over a year people have been comparing the UK price including VAT with the pre-tax US price. The units should be compared pre-tax (yes the european one is still more expensive, but not by as much). Furthermore the 30% drop in the dollar is behind the difference...

[QUOTE="svenskamerikan"][QUOTE="ukillwegrill"]

They arnt losing money on each console sold were i live

It cost £350 for a 40GB (just over $700 usd)

ukillwegrill

When will people from Europe understand the concept of VAT - while they might still make money that isn't the amount that Sony see's

Separately - Bloomberg came out over four months ago and said Sony wasn't loosing money on the PS3 60gb anymore.... and that was without 65nm ($600 price point) - you are already seeing the price drops from them not loosing much money anymore...... there won't be another one for awhile

TBH i dont give a damn if u had to pay so much u would be upset

Its £299 here in England

So it begins...