Report: Sony is Now Losing Just $36 on Every PS3 Slim Sold
This is interesting.. According to http://www.isuppli.com/News/Pages/Sony-Gets-One-Step-Closer-to-Breakeven-Point-with-Latest-PlayStation-3-Design.aspx Sony now losing just $36 on every PS3 Slim sold.
To quote: "The PlayStation 3 was the biggest risk yet for Sony with an estimated manufacturing cost between $690 and $805 when it first hit the market. The retail price was just $599 showing how much each sale hurt.
The saving grace, however, is the fact that manufacturing costs come down and most of the profit is generated from game sales rather than the hardware itself. In January Sony was thought to have reduced its manufacturing costs by 35% to just $448, but still $48 above the then $399 retail price.
Then the PS3 Slim was created which involved a development cost and new components. That pushed the loss back up to around $100, but was combined with a surge in sales increasing the profits garnered from game sales.
Now with Christmas fast approaching iSuppli has done a new report showing that Sony has reduced costs to $336 meaning each sale now only loses the company $36. That paves the way for profit at some point next year when certain PS3 Slim components fall in price."
$36 may or may not be correct, but remember that retail stores don't sell stuff for free! So whatever the real cost is, you also have to consider the profit a retail store or wholesaler is making in each sale, usually starting from 10% and up to 30%.
Don't know what is the usual profit on game bussiness is in the US but in South America is at least 15% in this category.
I don't believe that Sony still loose 36 $ on every PS3....
This price that Sony declare cannot be the true for me... these are prices for single people that go to buy a single piece at store, not prices for a major company like Sony that order milions of pieces in the world. For example price for nvidia synthesizer is 46 $ ?? I can't believe that a 7600 gt (as i know is the same family, maybe I'm wrong) costs so High to a major company like Sony.
Yeah, Maybe they're talking about wholesale price for retail stores. Cause I know it cost major retail stores about $100 dollars for the wii and they sell them for $200. I'm going to find out how much stores pay for the ps3. I'll be back.