How much do the companies make/lose on each console sold?

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Uzumaki_Naruto5

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#1 Uzumaki_Naruto5
Member since 2005 • 1058 Posts
Anyone have any estimates or exact figures with sources and are recent on how much sony, ms, and nintendo make on each console sold. I heard ps3 is actually profitable due to lowered bluray diode costs and from removing the ps2 emulation chips?
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SmokieX

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#2 SmokieX
Member since 2005 • 2412 Posts
A billion dollars:(
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Danm_999

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#3 Danm_999
Member since 2003 • 13924 Posts

The PS3 isn't profitable yet, they still lose money on every unit sold. The Very Best put up a thread about how they expect each unit to garner a profit by March 2008, so once they work off the initial costs of designing and marketing the PS3, it'll then be profitable.

Microsoft I believe are making a profit on each unit sold (became that way a few months ago), but I'm not sure if their in the black, obviously that 3 year warranty extension is eating into their bottom line.

As for Nintendo, they make a proportionately large profit on each Wii, and since their selling so many so quickly, their laughing all the way to the bank.

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PBSnipes

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#4 PBSnipes
Member since 2007 • 14621 Posts

Its impossible to say exactly the numbersbut what I do know is:

360: was making a $70+ profit per console sold back in November 06, so presumably its well above $100 now.

Wii: Was making a $50-70+ (can't remember the exact number)profitper consolesoldat launch, but because of the outdated tech it probably hasn't dropped as dramatically as the 360 has over the same time period. I'd say $75/$100 profit per console sold max depending on whether the initial profit was $50 or $70+.

PS3: Started off making an estimated $200-300+ loss per console sold at launch. Numbers are harder to estimate because of the BR drive and the fact Sony has not released any profit/loss per unit sold numbers to the best of my knowledge, but I'd be willing to bet they're still losing money on each PS3.

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Uzumaki_Naruto5

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#5 Uzumaki_Naruto5
Member since 2005 • 1058 Posts

Its impossible to say exactly the numbersbut what I do know is:

360: was making a $70+ profit per console sold back in November 06, so presumably its well above $100 now.

Wii: Was making a $50-70+ (can't remember the exact number)profitper consolesoldat launch, but because of the outdated tech it probably hasn't dropped as dramatically as the 360 has over the same time period. I'd say $75/$100 profit per console sold max depending on whether the initial profit was $50 or $70+.

PS3: Started off making an estimated $200-300+ loss per console sold at launch. Numbers are harder to estimate because of the BR drive and the fact Sony has not released any profit/loss per unit sold numbers to the best of my knowledge, but I'd be willing to bet they're still losing money on each PS3.

PBSnipes

Hold on, the 360 was making a profit at launch? That cant be right cant it? I mean Im positive it wasnt but I think it is now though.

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Lazy_Boy88

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#6 Lazy_Boy88
Member since 2003 • 7418 Posts

Microsoft was losing like $300 each at launch but now are at like $70 profit each. Thing is they're still losing major money on the hardware from all the dead units coming in on warranty.

Wii was profitable of $90 at launch I believe (counting Wiisports as a DVD). They're probably making $100-120 each now. The Wii could easily be priced at $149 and Nintendo still be making major bucks.... but they can rip everyone off so they do.

Sony was losing like $300 at launch. Probably down to about $100 for each one produced now. Blu-ray diodes went down from $150 at launch to $8 this summer so it's pretty feasible. Prices on manufacturing high end hardware goes down really fast too. I think they're using 65nm Cell chips now. Sony could be down to less that $400 easily next year I'd think.

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whoisryanmack

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#7 whoisryanmack
Member since 2006 • 7675 Posts
[QUOTE="PBSnipes"]

Its impossible to say exactly the numbersbut what I do know is:

360: was making a $70+ profit per console sold back in November 06, so presumably its well above $100 now.

Wii: Was making a $50-70+ (can't remember the exact number)profitper consolesoldat launch, but because of the outdated tech it probably hasn't dropped as dramatically as the 360 has over the same time period. I'd say $75/$100 profit per console sold max depending on whether the initial profit was $50 or $70+.

PS3: Started off making an estimated $200-300+ loss per console sold at launch. Numbers are harder to estimate because of the BR drive and the fact Sony has not released any profit/loss per unit sold numbers to the best of my knowledge, but I'd be willing to bet they're still losing money on each PS3.

Uzumaki_Naruto5

Hold on, the 360 was making a profit at launch? That cant be right cant it? I mean Im positive it wasnt but I think it is now though.

It launched in dec 05 if I remember correctly, so thats almost a year after launch

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akif22

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#8 akif22
Member since 2003 • 16012 Posts
i think only nintendo were making profit from the start
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Ragashahs

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#9 Ragashahs
Member since 2005 • 8785 Posts
not sure about 360 but i just read an artical that stated the PS3 use to be sold at 200 dollar lose but since the BD diodes and CELL have become very cheap to produce the have been sold for profit since april
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whoisryanmack

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#10 whoisryanmack
Member since 2006 • 7675 Posts

not sure about 360 but i just read an artical that stated the PS3 use to be sold at 200 dollar lose but since the BD diodes and CELL have become very cheap to produce the have been sold for profit since aprilRagashahs

now if they could only sell them...

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PBSnipes

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#11 PBSnipes
Member since 2007 • 14621 Posts

Microsoft was losing like $300 each at launch but now are at like $70 profit each. Thing is they're still losing major money on the hardware from all the dead units coming in on warranty.

Wii was profitable of $90 at launch I believe (counting Wiisports as a DVD). They're probably making $100-120 each now. The Wii could easily be priced at $149 and Nintendo still be making major bucks.... but they can rip everyone off so they do.

Sony was losing like $300 at launch. Probably down to about $100 for each one produced now. Blu-ray diodes went down from $150 at launch to $8 this summer so it's pretty feasible. Prices on manufacturing high end hardware goes down really fast too. I think they're using 65nm Cell chips now. Sony could be down to less that $400 easily next year I'd think.

Lazy_Boy88

MS lost either $120 or 124 exactly per 360 sold at launch, I can't remember which one but I know that its one of the two. It was making a $70+ profit in november 06, so its definitely gone up since then.

And TC: I said November 06, meaning the year after launch.

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choasgod

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#12 choasgod
Member since 2005 • 5710 Posts
Wii is making around $30 - $40 per console imo, though it looks higher they reailty is quantity + DS sales are distorting the numbers ...

PS3 is losing around $50 in Europe, making $70 in Australia, losing around $177 in US and $110 in Japan ...

360 is losing around $40 per console WW except in Australia where it makes around $50 per console ...

Ohh and i ignore that statement that M$ was making $70 per 360 sold as of November 06 because M$ posted a loss for that quarter - for the next quarter - and the lastest quarter. The latest quarters loss was $1.29 Bn, of that $1.05 Bn was repair costs / warrenty extention and $240 million was from the cost of Marketing / selling the 360 ...