Sony Losing almost $250 per PS3 console

[Black_Smoke]

Sony Losing Almost $250 per Console
The high cost of a next-gen system revealed.

November 16, 2006 - It was clear that the cost of producing PS3 units were high for Sony, forcing the company to charge $600 per unit, but now we know exactly how high. Next-gen.biz has offered a full analysis of Sony's expenses. As it turns out, Sony is losing $306.85 for each 20GB system sold and $241.35 for every 60GB system.

The full production cost for a 20GB system is a whopping $805.85, with the 60 GB coming in at $840.35. Chief among the expenses are the RSX graphics chip at $129 and the Blu-Ray optical drive at $125. In contrast, the $400 Xbox 360 only costs $323.30. For the first time in its five-year console publishing history, Microsoft is making a profit on each system sold.
For those wondering about retailers, it should be noted that stores make almost no money selling consoles. Retailers such as EB Games and Wal-Mart make money on software and peripheral sales.

The steep cost of producing PS3s won't last forever. In general, the longer an item is produced, the cheaper it becomes to manufacture. Over time, the cost of the PS3 will get lower as the cost of parts gets cheaper and production becomes more efficient. That doesn't guarantee Sony will ever make a profit on selling the system alone, but it can still bank on earning a hefty paycheck from software sales and digital downloads.

The bottom line is that no matter what it costs Sony to make one, you only have to pay $600 to own it. In that sense, you're getting a hell of a bargain when you purchase a PS3.

[SEER hearts KAIN]

 

[evan the dude]

i'm sorry, but $600 is not a bargain when compared to the 360. i'll stick with my badass computer for gaming 

[Nutty]

With all the shit in the PS3, your def. getting a bargain

[Trauma-san]

Hey, I have a 1972 pinto that books for 900 dollars because it has an 8 track player in the dash and you can't buy those anymore in a car.  I'll sell it to you for 600.  You want it?  IT'S A BARGAIN!


Just because something is valued at something doesn't make it a bargain, if you don't need it.  Things are only a bargain when they were to be purchased anyway and there's no cheaper alternative.  The 360 is virtually the same console, and it's 2-300 dollars cheaper, with many more games already out for it.  Only a fucking idiot would think the ps3 is a bargain.

[js83]

  The 360 is virtually the same console,

 

[Mr. O]

  The 360 is virtually the same console,

 

I think he meant power wise.

[Chief]

where did you find that article? i find it really hard to believe sony will lose 300$ per console... if they sell 1 million consoles, they lose 300 million... how many consoles will be sold this year? thats a huge fuckn loss man... hard to believe.

[Mr. O]

where did you find that article? i find it really hard to believe sony will lose 300$ per console... if they sell 1 million consoles, they lose 300 million... how many consoles will be sold this year? thats a huge fuckn loss man... hard to believe.

It is true that production cost is more than cost of buying the system.

[Don Jacob]

where did you find that article? i find it really hard to believe sony will lose 300$ per console... if they sell 1 million consoles, they lose 300 million... how many consoles will be sold this year? thats a huge fuckn loss man... hard to believe.

that's per se, like the article says they make all their money from games, publishings, and accessories. also over time parts and ways of making it will/should become more efficient.

[On The Edge of Insanity]

where did you find that article? i find it really hard to believe sony will lose 300$ per console... if they sell 1 million consoles, they lose 300 million... how many consoles will be sold this year? thats a huge fuckn loss man... hard to believe.

that's per se, like the article says they make all their money from games, publishings, and accessories. also over time parts and ways of making it will/should become more efficient.

Not to mention the increase in sales of Sony HDTV's and Bluray discs its likely to cause

[Trauma-san]

where did you find that article? i find it really hard to believe sony will lose 300$ per console... if they sell 1 million consoles, they lose 300 million... how many consoles will be sold this year? thats a huge fuckn loss man... hard to believe.

See, Chief... you're thinking logically.  Sony is desperate, and when you're desperate you don't use logic.  BTW, they plan to sell 2 million consoles world wide by the end of the year.... that would be 600 million, or you know 2/3rds of a billion dollars they're putting themselves in the hole by the end of the year.  Didn't they recently announce their gaming division lost them almost a billion dollars last year?  This is how they do business. 

[Black_Smoke]

where did you find that article? i find it really hard to believe sony will lose 300$ per console... if they sell 1 million consoles, they lose 300 million... how many consoles will be sold this year? thats a huge fuckn loss man... hard to believe.

lol better believe it man. IGN.com one of the most respected and well known gaming websites