[L8fGLM4d]

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

[kentbrookug]

From what I've read MS is profiting of the 360 now.

[ovH9wfSJ]

[quote=acarney;335750]...quote]

No big deal,they just ass-rape people on game prices,this is how the console world has worked for a very long time now,nothing new.

[kentbrookug]

They should start advertising the ass rape, while the market would be small, there is a small group they could appeal to. Sales are always good.

[Acalsenunse]

That's quite a loss...

[Coellacag]

That's nothing compared to $4.2million VW looses for every Veyron sold :P.

They just treat it as a marketing cost and move along. They'd rather loose that much rather than loosing the whole market.

[autoloanexpert]

Link? Console board?

[L8fGLM4d]

Link? Console board?

I felt this was more of a company / financial post then a console one since it’s talking about money and the effect it might have on the company rather then what the console can do or what not.

This was via Engadget

http://www.engadget.com/2006/11/16/s...t-on-each-ps3/

[YpciJQdo]

I have to say I don't really see how those MS numbers are correct. Anyway, when you add in the number of returns MS have, they are making a lose.