DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Sony takes a hit of $240 to $300 USD for EVERY PS3 sold!

**L8fGLM4d** · 11-17-2006, 03:58 PM

Holy crap, I knew Sony was going to ship units at a loss at first but man that is a huge hit! It looks like for every base 20Gig unit sold Sony will have forked out an extra $306 USD to make the device and for the more expensive premium 60Gig unit Sony had to spend an extra $241 USD building it! That is just insane when you think that the base unit is $500 USD and the premium is $600! A base PS3 really costs $806 USD to make and a premium costs $841 USD to make?! Wow, Sony is going to have a terrible year with these numbers along with the whole deadly battery recall thing.

I’m not sure the ratio of base to premium’s being sold in the first shipment but what is Sony claiming they’ll get to the US now, four hundred thousand units? Taking a wild and random guess that it’s 50-50 between the units that would be $109 million lost on that first shipment! I know things will get cheaper for Sony and those numbers will shrink some but with MS already making a profit of $75 I wonder how long it will take Sony to just get the cost to the point where they break even!

Anyway, what might be most surprising is that Nintendo is making a PROFIT on each Wii that sells right now! That is just crazy.

Edit: Correction, MS is making $75 on every Xbox 360 sold. It’s also reported Sony will need to sell five to seven games to just break even on the PS3 build cost! Now I’m sure that sounds like a small amount of games and most people will buy more, but that’s just the break even point. I’m not sure how many people will buy more then ~$400 in games (they’re what, about $60 each now?) in the first quarter of owning the system. Profits might take a good while before they start showing up!

Break down of costs: http://blogs.business2.com/utilitybe...loss_is_a.html

11-17-2006, 03:58 PM	#1
L8fGLM4d Join Date Oct 2005 Posts 551 Senior Member	Sony takes a hit of $240 to $300 USD for EVERY PS3 sold! Holy crap, I knew Sony was going to ship units at a loss at first but man that is a huge hit! It looks like for every base 20Gig unit sold Sony will have forked out an extra $306 USD to make the device and for the more expensive premium 60Gig unit Sony had to spend an extra $241 USD building it! That is just insane when you think that the base unit is $500 USD and the premium is $600! A base PS3 really costs $806 USD to make and a premium costs $841 USD to make?! Wow, Sony is going to have a terrible year with these numbers along with the whole deadly battery recall thing. I’m not sure the ratio of base to premium’s being sold in the first shipment but what is Sony claiming they’ll get to the US now, four hundred thousand units? Taking a wild and random guess that it’s 50-50 between the units that would be $109 million lost on that first shipment! I know things will get cheaper for Sony and those numbers will shrink some but with MS already making a profit of $75 I wonder how long it will take Sony to just get the cost to the point where they break even! Anyway, what might be most surprising is that Nintendo is making a PROFIT on each Wii that sells right now! That is just crazy. Edit: Correction, MS is making $75 on every Xbox 360 sold. It’s also reported Sony will need to sell five to seven games to just break even on the PS3 build cost! Now I’m sure that sounds like a small amount of games and most people will buy more, but that’s just the break even point. I’m not sure how many people will buy more then ~$400 in games (they’re what, about $60 each now?) in the first quarter of owning the system. Profits might take a good while before they start showing up! Break down of costs: http://blogs.business2.com/utilitybe...loss_is_a.html
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