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

wow I guess the thought of sony making a profit on something really angers some people

[QUOTE="PillyChickle"]

[QUOTE="XenogearsMaster"] We already have evidence that Vita is selling at a profit. If you don't believe that, then it's damage control. XenogearsMaster

I think the evidence lies with the opposite, actually. Looking at Sony's history of console launches you'll find that they were all sold at a loss, and that their strategy was always to regain the losses with peripherals and software - particularly the memory cards. Looking at the fact that Sony didn't equip the Vita with any internal storage capacity of any kind, and that memory cards are sold seperately at an extortionate price, do you really think the Vita is profitable as it is now? Coupled with the fact that Kaz Hirai himself last year stated that Sony expects to be making a profit on every PSV unit sold in around three years time. If you're right, then he's obviously lying. Why? I don't know. All I know is the idea of Sony making a profit on the Vita right now doesn't add up one bit.

The evidence is stacked up in favor of the Vita selling at a loss.

u do know they sell to retailers cheaper right?

u do know they sell to retailers cheaper right?

dontshackzmii

For instance a $250 handheld is probably sold to a retailer in the $235-$240 range.

[QUOTE="CanYouDiglt"]

[QUOTE="ShadowMoses900"]

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.

XenogearsMaster

Sony consumer products head Kaz Hirai said that the company expects to begin making a profit on the hardware within three years.

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

that doesnt make sense....the 3ds cost 104 to make and they are loss leading.....idk if sony is making a profit or not but i doubt its much

Just like with the 3DS, cost of parts =/= cost of the machine.

Lets the Cows believe what they want, truth is a cold mistress when you try to avoid her.

"Of course, this doesn't figure in assemby cost, development, handling and other costs"

store takeblue_hazy_basic

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

If this report is correct, it looks like the bill of materials estimate places the Vita closer in the range to the Wii ($160 when it came out - http://www.xbitlabs.com/news/multimedia/display/20061215092033.html) than the 3DS ($100 - http://www.isuppli.com/teardowns/news/pages/nintendo-3ds-carries-$100-71-bill-of-materials-ihs-isuppli-physical-teardown-reveals.aspx). Seeing as these teardowns are all done by different companies and sources though, they may not be comparable and their accuracy probably should be called into question.

EDIT: I see now the Wii estimate *included* the assembly cost ($19.50) into the BOM. So the BOM should be reduced to about $140 for the Wii. Pre-assembly, I see $100 for the 3DS, $140 for the Wii, $160 for the Vita (3G costs likely negligible). All ended up being sold for $250. No real big rip-off here.

They're trying to make money?

Those dicks!!!

Zaibach

if they were selling it at a loss.. I can understand them selling memory cards seperately to make more money to recoup for it whever they could.

Though this is ridiculous that they aren't giving you a memory card if they are making profit, seeing as how those cost them absolutely nothing.. Thats what makes them dicks.

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

finalstar2007

[QUOTE="finalstar2007"]

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

D4W1L4H

you guys hate gamestop but love eb games when eb games is owned by gs......circular reasoning

...And a Macbook costs Apple $300 and is sold @ $12000k. People are too stupid sometimes.

[QUOTE="Zaibach"]

They're trying to make money?

Those dicks!!!

VendettaRed07

if they were selling it at a loss.. I can understand them selling memory cards seperately to make more money to recoup for it whever they could.

Though this is ridiculous that they aren't giving you a memory card if they are making profit, seeing as how those cost them absolutely nothing.. Thats what makes them dicks.

So....my insult still stands...

They'll be making a killing off it from us in the UK and Europe. We have to pay £280 for the 3G one here which is equal to $436!

$436 - $159 = $277 profit.

Yes Sony, you should really give is something to say thank you that you don't give the Americans.

...And a Macbook costs Apple $300 and is sold @ $12000k. People are too stupid sometimes.

abuabed

all i know is that the retailer is making a huge profit regardless.

[QUOTE="SPYDER0416"]

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

Nengo_Flow

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

how do u know they're not freaking out?

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.

yoshi_64

If only more people on this site could use their brain like you do.

I can't believe this, Sony really can't afford to be so stupid and greedy. But then Sony do love their expensive console hardwares.

[QUOTE="yoshi_64"]

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.

phantomblade220

If only more people on this site could use their brain like you do.

No the console gaming industry works differently. They must be prepared to sell the hardware initially at no profit to a loss and make up the money in software. That's the way it's always been.

Nintendo were one of the first to sell console hardware at a profit off launch with the Wii.

What's the difference between 3G and the Wi-fi one?

That's the key. 3G version is probably massively overpriced.

So there is room for price drops. Good for the future of the Vita.foxhound_fox

There are way more costs than materials.

Marketing. Production. R&D.

3DS was said to cost around $100 and Nintendo was selling it at a loss after the pricecut. So $70 difference even was not enough to profit.