PS Vita 3G Just Costs Sony $159 to make; Sony Selling At Massive Profit?

Remember how we were all crying foul at Nintendo selling the 3DS for $250, at what was clearly a massive profit? Well apparently, the Vita is very cheap for Sony to make too.

Apparently, the 3G version of PS Vita just causes Sony $159 to make. Considering that Sony will be selling this system for $300, you can imagine the massive profits they must be turning on the thing.

I remember how the cows jumped on the hate bandwagon against the 3DS last year, calling it 'overpriced.' Will they do the same for their precious PS Vita too?

SOURCE

Well, at least we know now that there'll be a price cut later. At the rate the Vita has been selling, heavens know that it needs one to avoid being completely dead by this point in timenext year.

this is what businesses strive to do ... I am not understanding your dismay here.

Well that is good for Sony, they are actually doing better than I expected. However, this doesn't consider labor costs, licensing fees Sony must pay, shipping costs, etc. etc. I'll say they might be close to breaking even.ShadowDeathX

[QUOTE="ShadowDeathX"]Well that is good for Sony, they are actually doing better than I expected. However, this doesn't consider labor costs, licensing fees Sony must pay, shipping costs, etc. etc. I'll say they might be close to breaking even.crippled_ram

Well that's surprising. I guess they weren't selling at a loss after all.

Tbh not that massive, there are other costs that come into place but oh well all i care about i'll be getting a Vita for $60 :D:D.. i love EBgames and its trade in deals sometimes

I haven't seen such a brilliant display of blind fanboyism since a while ago!

This really is just brilliant. Now it's "normal", and "business 101" and what-not. You guys should pretend to have a mind of your own once in a while!

Also please don't forget, that it doesn't even have a memory card included!

Kids, remeber that just because a unit costs that much to make, it does not equate the amount of R&D that went into the system, planning, employees who were hired to test, debug, and pretty much had any hand in making the system, along with marketing, etc.

You never sell your items for a loss, because that is bad. You need a way to recooperate your goods and make up for the expenses that went into making this system a reality.

They're trying to make money?

Those dicks!!!

Makes the lack of internal storage even more ridiculous. Most people figured the reason Sony didn't include 8-16GB of NAND was it would drive costs too high; turns out it really is because they want to gouge customers with those memory cards.

Do you mean that fanboys are hypocrites? what else is new in SW.

Anyway, like i said, Vita will be fine, specially now that we know Sony can afford a price cut.

Sony selling it at a loss

Debunked

http://andriasang.com/comw7e/vita_loss/

Well that's surprising. I guess they weren't selling at a loss after all.

SPYDER0416

I guess thats why they arent freaking out that the VITA aint selling so well

Remember how we were all crying foul at Nintendo selling the 3DS for $250, at what was clearly a massive profit? Well apparently, the Vita is very cheap for Sony to make too.

Apparently, the 3G version of PS Vita just causes Sony $159 to make. Considering that Sony will be selling this system for $300, you can imagine the massive profits they must be turning on the thing.

I remember how the cows jumped on the hate bandwagon against the 3DS last year, calling it 'overpriced.' Will they do the same for their precious PS Vita too?

SOURCE

Well, at least we know now that there'll be a price cut later. At the rate the Vita has been selling, heavens know that it needs one to avoid being completely dead by this point in timenext year.

crippled_ram

Well there is still marking, service, R&D, and a lot of other overhead not accounted for.

It's the same as what they did with the 3DS, about 105 for the material but Ninty are still selling it at a loss.

Well there is still marking, service, R&D, and a lot of other overhead not accounted for.

Wasdie

I'll be waiting for a price drop then.

Well there is still marking, service, R&D, and a lot of other overhead not accounted for.

Wasdie

But that's not usually taken into account. I could be wrong, but I'm pretty sure every other "console X costs Y to make" story only takes into account the cost of the components.

Welcome to "Business 101."ispeakfact

Pretty much this.

At least there's room for a pricecut

Sony selling it at a loss

Debunked

http://andriasang.com/comw7e/vita_loss/

phonemug

That $159 price does not include, research and development costs, advertising costs, programing costs, testing costs etc.; that is merely the amount of money it takes to physically produce the device. Just because the manufacturing costs are $159 does not mean Sony is making a $141 profit on each 3G Vita sold, in fact if I remember correctly Sony is taking a loss on the Vita like they did on the Playstation 3, and Playstation 2. Nintendo made a profit on the 3DS at the $250 price point, but are now breaking even or taking a slight loss at the $170 price point, yet the 3DS only cost $110 to manufacture, however Nintendo likely included an extra $60 in the price to help earn back all the costs are listed at the begining of my post.

That $159 price does not include, research and development costs, advertising costs, programing costs, testing costs etc.; that is merely the amount of money it takes to physically produce the device. Just because the manufacturing costs are $159 does not mean Sony is making a $141 profit on each 3G Vita sold, in fact if I remember correctly Sony is taking a loss on the Vita like they did on the Playstation 3, and Playstation 2. Nintendo made a profit on the 3DS at the $250 price point, but are now breaking even or taking a slight loss at the $170 price point, yet the 3DS only cost $110 to manufacture, however Nintendo likely included an extra $60 in the price to help earn back all the costs are listed at the begining of my post.

DarkGamer007

APPLAUSE :cool:

This is only taking in to account how much the parts in the system cost. Kinda like how the iphone 4s only cost around $180 to make, yet apple sells it for around $700 without a contract :P But I doubt sony is making any money at all on the system once it actually makes it to retail.

That $159 price does not include, research and development costs, advertising costs, programing costs, testing costs etc.; that is merely the amount of money it takes to physically produce the device. Just because the manufacturing costs are $159 does not mean Sony is making a $141 profit on each 3G Vita sold, in fact if I remember correctly Sony is taking a loss on the Vita like they did on the Playstation 3, and Playstation 2. Nintendo made a profit on the 3DS at the $250 price point, but are now breaking even or taking a slight loss at the $170 price point, yet the 3DS only cost $110 to manufacture, however Nintendo likely included an extra $60 in the price to help earn back all the costs are listed at the begining of my post.

DarkGamer007

That $159 price does not include, research and development costs, advertising costs, programing costs, testing costs etc.; that is merely the amount of money it takes to physically produce the device. Just because the manufacturing costs are $159 does not mean Sony is making a $141 profit on each 3G Vita sold, in fact if I remember correctly Sony is taking a loss on the Vita like they did on the Playstation 3, and Playstation 2. Nintendo made a profit on the 3DS at the $250 price point, but are now breaking even or taking a slight loss at the $170 price point, yet the 3DS only cost $110 to manufacture, however Nintendo likely included an extra $60 in the price to help earn back all the costs are listed at the begining of my post.

DarkGamer007

Right now Ninty is selling at a loss with the 3DS. Your right though on everything else.ShuichiChamp24

the 3DS was selling at a loss for a while but not any more.

as for the Vita Kaz said it was selling at a loss. The cost of materials is not the total cost, and I'm skeptical that the cost of materials is actually that low

[QUOTE="DarkGamer007"]

That $159 price does not include, research and development costs, advertising costs, programing costs, testing costs etc.; that is merely the amount of money it takes to physically produce the device. Just because the manufacturing costs are $159 does not mean Sony is making a $141 profit on each 3G Vita sold, in fact if I remember correctly Sony is taking a loss on the Vita like they did on the Playstation 3, and Playstation 2. Nintendo made a profit on the 3DS at the $250 price point, but are now breaking even or taking a slight loss at the $170 price point, yet the 3DS only cost $110 to manufacture, however Nintendo likely included an extra $60 in the price to help earn back all the costs are listed at the begining of my post.

groverslanding

APPLAUSE :cool:

Why would anyone buy the 3G model anyway? But yes they are selling it at a prfit, if they weren't they would have pulled it from the shelves by now. People who think otherwise are just stupid and don't know how business works.

Why would anyone buy the 3G model anyway? But yes they are selling it at a prfit, if they weren't they would have pulled it from the shelves by now. People who think otherwise are just stupid and don't know how business works.

ShadowMoses900

:lol::lol::lol:

Could you become any more funny?

[QUOTE="ShadowDeathX"]Well that is good for Sony, they are actually doing better than I expected. However, this doesn't consider labor costs, licensing fees Sony must pay, shipping costs, etc. etc. I'll say they might be close to breaking even.crippled_ram

Clearly most people here have never taken a business course or knows how they work. Sure the materials cost $160, but you have to factor in labor costs, as well as the costs of managing the supply chain (so delivery of materials, shipping, etc), and they also have advertising costs, and R&D. They have to include the R&D costs in the price, so they probably either amortize it over the life time of the product, or they estimate how many units they will sell within the products liftime, and assign he R&D costs that way. Either way, I am sure that the Vita costs way more than $160, just like how the 3DS cost more than 130 ( i think that was its BoM)jonathant5

Cool, more reason to wait for a price cut.