Sony Losing Almost $250 per Console

[CJPC]

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. http://www.next-gen.biz/index.php?option=com_content&task=view&id=4222&Itemid=2 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.


Thanks to http://ps3.ign.com/articles/746/746482p1.html for sharing the news with us!

[PS3 News]

They claim this every console release, but is it just marketing or really legit. Perhaps it is... in any case, they already made their sale from me anyway!

[Tru2m3]

I don't ever buy the junk publicists put out from these companies.

[kitsuneofshadow]

Hmmm.. so how much is it costing Nintendo to make a Wii? Nothing at all since its so cheap yeah?

[Chiyo]

Hmmm.. so how much is it costing Nintendo to make a Wii? Nothing at all since its so cheap yeah?

Probably just ten bucks XD

Oke, now stop laughin at Nintando a second, i think Nintando does not get manny prophet form the Wii, but it will from the games

P.S. Im not a big Nintando fan but i do like the Wii

[kitsuneofshadow]

The ONLY reason(s) why i'm getting a wii is:

1. Too cheap to spend 600$ on the PS3 and $400 on the 360
2. I love Link and Samus o.O
3. Wii is cheaaaaaaaap
4. My ex is holding one for me... gotta take her out on a date but meh.. ME GETS A WII! She never said i had to go out with her

[Chiyo]

The ONLY reason(s) why i'm getting a wii is:

1. Too cheap to spend 600$ on the PS3 and $400 on the 360
2. I love Link and Samus o.O
3. Wii is cheaaaaaaaap
4. My ex is holding one for me... gotta take her out on a date but meh.. ME GETS A WII! She never said i had to go out with her

Haha,
you should go out with her, get a Wii and a fun night, maby a lil more XD