X360 or PS3 : Which One Is Causing More Financial Losses To Its Manufacturer?

This topic is locked from further discussion.

Avatar image for Mystery_Writer
Mystery_Writer

8351

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

#1 Mystery_Writer
Member since 2004 • 8351 Posts
I mean, how much is the manufacturing cost of each of those two consoles compared to their retail price? And which company is losing the most money while subsidizing its console?
Avatar image for kingpoopa84
kingpoopa84

547

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#2 kingpoopa84
Member since 2006 • 547 Posts
You do know now that the 360 makes $50 on each sold don't you?
Avatar image for MCGSMB
MCGSMB

2149

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#3 MCGSMB
Member since 2007 • 2149 Posts
Sony is losing money. Microsoft is making money.
Avatar image for Zenkuso
Zenkuso

4090

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#4 Zenkuso
Member since 2006 • 4090 Posts

X360 i believe is making a 70$ per console

Wii i believe is making a 40$ profit per console

PS3 is losing about 200$+ per console cause of the manufacturering costs of it are so high. 

Avatar image for kingpoopa84
kingpoopa84

547

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#5 kingpoopa84
Member since 2006 • 547 Posts

X360 i believe is making a 70$ per console

Wii i believe is making a 40$ profit per console

PS3 is losing about 200$+ per console cause of the manufacturering costs of it are so high. 

Zenkuso

Ah! So it has changed again.

Avatar image for cheezisgoooood
cheezisgoooood

6130

Forum Posts

0

Wiki Points

0

Followers

Reviews: 44

User Lists: 0

#6 cheezisgoooood
Member since 2004 • 6130 Posts
PS3 is the only one losing money.
Avatar image for Mystery_Writer
Mystery_Writer

8351

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

#7 Mystery_Writer
Member since 2004 • 8351 Posts

X360 i believe is making a 70$ per console

Wii i believe is making a 40$ profit per console

PS3 is losing about 200$+ per console cause of the manufacturering costs of it are so high.

Zenkuso

:shock: I thought the Wii was making the most profit and both X360 and PS3 are having losses!

what about this article Game Over For X360?

Avatar image for neojackazz
neojackazz

136

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#8 neojackazz
Member since 2003 • 136 Posts
LINK TO XBOX PROFIT ?
Avatar image for latinrage69
latinrage69

2649

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#9 latinrage69
Member since 2003 • 2649 Posts

ms is making $75 per console

sony is losing $240 per console.

  

Avatar image for latinrage69
latinrage69

2649

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#10 latinrage69
Member since 2003 • 2649 Posts

LINK TO XBOX PROFIT ?neojackazz

here

it's from a year ago. if they where making $75 per console this time last year, one can only image how much they're making now.

Avatar image for tothedogsforme
tothedogsforme

70

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#11 tothedogsforme
Member since 2006 • 70 Posts
/thread
Avatar image for Gamer556
Gamer556

3846

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#12 Gamer556
Member since 2006 • 3846 Posts
[QUOTE="Zenkuso"]

X360 i believe is making a 70$ per console

Wii i believe is making a 40$ profit per console

PS3 is losing about 200$+ per console cause of the manufacturering costs of it are so high.

Mystery_Writer

:shock: I thought the Wii was making the most profit and both X360 and PS3 are having losses!

what about this article Game Over For X360?

The Wii is definately making the most money, but the 360 is making a profit as well.

His numbers are wrong though, because there is no way the Wii costs $210 to manufacture. The core 360 probably costs like $250.

Avatar image for jyoung312
jyoung312

4971

Forum Posts

0

Wiki Points

0

Followers

Reviews: 2

User Lists: 0

#13 jyoung312
Member since 2003 • 4971 Posts
How much profit is MS losing with repairs? Do refurbed or new systems that Ms send out to their customers count as sales?
Avatar image for Pangster007
Pangster007

4426

Forum Posts

0

Wiki Points

0

Followers

Reviews: 42

User Lists: 0

#14 Pangster007
Member since 2004 • 4426 Posts

I don't know the exact numbers but...

PS3 is making losses, 360 has already at least broken-even, but the most profitable is the Wii. 

Avatar image for latinrage69
latinrage69

2649

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#15 latinrage69
Member since 2003 • 2649 Posts
[QUOTE="Mystery_Writer"][QUOTE="Zenkuso"]

X360 i believe is making a 70$ per console

Wii i believe is making a 40$ profit per console

PS3 is losing about 200$+ per console cause of the manufacturering costs of it are so high.

Gamer556

:shock: I thought the Wii was making the most profit and both X360 and PS3 are having losses!

what about this article Game Over For X360?

The Wii is definately making the most money, but the 360 is making a profit as well.

His numbers are wrong though, because there is no way the Wii costs $210 to manufacture. The core 360 probably costs like $250.

the wii cost $158 to make. link

the ps3 core cost $805 to make. link

premium 360 costs $323 to make

Avatar image for MCGSMB
MCGSMB

2149

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#16 MCGSMB
Member since 2007 • 2149 Posts
[QUOTE="Gamer556"][QUOTE="Mystery_Writer"][QUOTE="Zenkuso"]

X360 i believe is making a 70$ per console

Wii i believe is making a 40$ profit per console

PS3 is losing about 200$+ per console cause of the manufacturering costs of it are so high.

latinrage69

:shock: I thought the Wii was making the most profit and both X360 and PS3 are having losses!

what about this article Game Over For X360?

The Wii is definately making the most money, but the 360 is making a profit as well.

His numbers are wrong though, because there is no way the Wii costs $210 to manufacture. The core 360 probably costs like $250.

the wii cost $158 to make. link

the ps3 core cost $805 to make. link

premium 360 costs $323 to make

Damn. No wonder Sony stopped selling the 20GB version. Look how much they were losing on it.

Avatar image for magus-21
magus-21

2868

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#17 magus-21
Member since 2006 • 2868 Posts
[QUOTE="Mystery_Writer"][QUOTE="Zenkuso"]

X360 i believe is making a 70$ per console

Wii i believe is making a 40$ profit per console

PS3 is losing about 200$+ per console cause of the manufacturering costs of it are so high.

Gamer556

:shock: I thought the Wii was making the most profit and both X360 and PS3 are having losses!

what about this article Game Over For X360?

The Wii is definately making the most money, but the 360 is making a profit as well.

His numbers are wrong though, because there is no way the Wii costs $210 to manufacture. The core 360 probably costs like $250.

It's making $40 calculated at a price point of $200, not at a price point of $250. WiiSports is a "bundle" addition, so whatever profit it contributes at a price point of $50 is calculated separately.
Avatar image for latinrage69
latinrage69

2649

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#18 latinrage69
Member since 2003 • 2649 Posts
[QUOTE="latinrage69"][QUOTE="Gamer556"][QUOTE="Mystery_Writer"][QUOTE="Zenkuso"]

X360 i believe is making a 70$ per console

Wii i believe is making a 40$ profit per console

PS3 is losing about 200$+ per console cause of the manufacturering costs of it are so high.

MCGSMB

:shock: I thought the Wii was making the most profit and both X360 and PS3 are having losses!

what about this article Game Over For X360?

The Wii is definately making the most money, but the 360 is making a profit as well.

His numbers are wrong though, because there is no way the Wii costs $210 to manufacture. The core 360 probably costs like $250.

the wii cost $158 to make. link

the ps3 core cost $805 to make. link

premium 360 costs $323 to make

Damn. No wonder Sony stopped selling the 20GB version. Look how much they were losing on it.

but that doesn't stop them from trying to introduce an 80gb "elite" version. linklink 2

it's almost like they're trying to lose the console war on purpose. 

Avatar image for shaggygrosser
shaggygrosser

5871

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#19 shaggygrosser
Member since 2003 • 5871 Posts

How much profit is MS losing with repairs? Do refurbed or new systems that Ms send out to their customers count as sales?jyoung312

No, refurb/repaired units do not count as a sale.  But I was wondering how much money MS was losing now that the warranty is for 1 year + free shipping both ways.  The shipping alone is about $30 round trip per console. 

Avatar image for TOAO_Cyrus1
TOAO_Cyrus1

2895

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#20 TOAO_Cyrus1
Member since 2004 • 2895 Posts

ms is making $75 per console

sony is losing $240 per console.

latinrage69

 

Well i believe MS selling them to stores for 380$ not 399$ and there is additional overhead such as shipping and paying the workers etc. They are probably still making a profit but its not 75$. The overall game division is defidentally profitable with game/accessory/Xbox live sales.

Avatar image for latinrage69
latinrage69

2649

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#21 latinrage69
Member since 2003 • 2649 Posts
[QUOTE="latinrage69"]

ms is making $75 per console

sony is losing $240 per console.

TOAO_Cyrus1

 

Well i believe MS selling them to stores for 380$ not 399$ and there is additional overhead such as shipping and paying the workers etc. They are probably still making a profit but its not 75$. The overall game division is defidentally profitable with game/accessory/Xbox live sales.

link? no link = no proof. no proof = failure. thus, no link = failure. again, link?

Avatar image for AntiType
AntiType

6249

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#22 AntiType
Member since 2003 • 6249 Posts
[QUOTE="TOAO_Cyrus1"][QUOTE="latinrage69"]

ms is making $75 per console

sony is losing $240 per console.

latinrage69

 

Well i believe MS selling them to stores for 380$ not 399$ and there is additional overhead such as shipping and paying the workers etc. They are probably still making a profit but its not 75$. The overall game division is defidentally profitable with game/accessory/Xbox live sales.

link? no link = no proof. no proof = failure. thus, no link = failure. again, link?

Did you make those charts by yourself? I mean... retailers buy from the manufacturer anywhere from 50% of the price they sell it

Avatar image for TheFozan
TheFozan

32

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

#23 TheFozan
Member since 2006 • 32 Posts
you dont need proof. anyone with common sense would know that PS3 is losing ATM. but it all could change when they bring out the big guns...
Avatar image for latinrage69
latinrage69

2649

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#24 latinrage69
Member since 2003 • 2649 Posts
[QUOTE="latinrage69"][QUOTE="TOAO_Cyrus1"][QUOTE="latinrage69"]

ms is making $75 per console

sony is losing $240 per console.

AntiType

 

Well i believe MS selling them to stores for 380$ not 399$ and there is additional overhead such as shipping and paying the workers etc. They are probably still making a profit but its not 75$. The overall game division is defidentally profitable with game/accessory/Xbox live sales.

link? no link = no proof. no proof = failure. thus, no link = failure. again, link?

Did he make those charts by himself? I mean... retailers buy from the manufacturer anywhere from 50% of the price they sell it

the chart is from isupply.com. true retailers pay less for the systems, they pay the whole sale price, but they have to buy them in bulk. i'm not sure how many units are in the shipment but i would guess over 20 per store (at least according to launch day numbers, afterwords, i'm not sure.)

Avatar image for jet052006
jet052006

859

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#25 jet052006
Member since 2007 • 859 Posts
If the PS3 is loosing around $200 from every sale, why do people expect the PS3 to drop in price anytime soon?
Avatar image for latinrage69
latinrage69

2649

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#26 latinrage69
Member since 2003 • 2649 Posts
If the PS3 is loosing around $200 from every sale, why do people expect the PS3 to drop in price anytime soon?jet052006
i don't know. wishful thinking? *shrugs shoulders*
Avatar image for Roushrsh
Roushrsh

3351

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

#27 Roushrsh
Member since 2005 • 3351 Posts

I know that the 360 makes profit , dunno how much though, the ps3 loses I think around 250 $ per console also Sony,s blue ray players cost like 1100 $ which is more than the PS3 , so they could be making more money, and the wii gains 10 $ for each console sold

Edit: Microsoft prob lost alot of moeny due to the 3 red lights thing/the insurance policy 

Avatar image for johngmills
johngmills

4349

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

#28 johngmills
Member since 2005 • 4349 Posts
If the PS3 is loosing around $200 from every sale, why do people expect the PS3 to drop in price anytime soon?jet052006
People are hoping for a price drop because they don't feel the PS3 will survive without one.  The casual gamers (the majority of PS2 owners) won't put $600 down on a gaming system.
Avatar image for VoodooHak
VoodooHak

15989

Forum Posts

0

Wiki Points

0

Followers

Reviews: 2

User Lists: 0

#29 VoodooHak
Member since 2002 • 15989 Posts
So which one is considering downsizing its gaming division?
Avatar image for VoodooHak
VoodooHak

15989

Forum Posts

0

Wiki Points

0

Followers

Reviews: 2

User Lists: 0

#30 VoodooHak
Member since 2002 • 15989 Posts

[QUOTE="jet052006"]If the PS3 is loosing around $200 from every sale, why do people expect the PS3 to drop in price anytime soon?johngmills
People are hoping for a price drop because they don't feel the PS3 will survive without one. The casual gamers (the majority of PS2 owners) won't put $600 down on a gaming system.

If it means getting more consoles into homes, then I don't see why Sony won't drop the price, even a little bit. But that will only work if they can make the loss up with software sales. Unfortunately, PS3's library isn't strong enough to carry the cost. Until that happens we won't see a price cut.

Avatar image for kemar7856
kemar7856

11789

Forum Posts

0

Wiki Points

0

Followers

Reviews: 20

User Lists: 0

#31 kemar7856
Member since 2004 • 11789 Posts
ps3 they already dropped the price so sony loses money on every unit