PS3 Is Sold At A “Remarkable” Loss For Sony
November 16th, 2006 by Steve Reddish in Articles, Business
iSuppli, an electronics supply chain, had their researchers perform an analysis on the PS3 to determine how much money Sony would lose for each PS3 manufactured. For the 20 GB retail PS3, priced at $499 US dollars, Sony will lose $306.85. For the 60 GB retail PS3, priced at $599 US dollars, Sony will lose $241.35. This means that the manufacturing cost of the 20 GB PS3, with all it’s included parts, is around $805.85 US dollars, and for the 60 GB PS3, $840.35. As iSuppli states,
“It’s common for video-game console makers to lose money on hardware, and make up for the loss via video game-title sales. Still, the size of Sony’s loss per unit is remarkable, even for the video-game console business.”
iSuppli also did a test similar to this for Microsoft and the Xbox 360, concluding that the $399 Xbox 360 was being sold for a $127 loss when it was first manufactured. A fourth quarter update in 2006 has changed those test results, now saying that the $399 Xbox 360 only costs $323.30 to manufacture.
Read (iSuppli.com)
Tags: Articles, Business
November 16th, 2006 at 11:00 pm
Wow now that is going to hurt … I guess Sony is definitely risking a great deal on Blu-ray and the success of the cell for advanced HD graphics and gameplay. Still with so many PS2s in the field that will be replaced it could turn out fine after the first 2-3 years. One thing is for sure there aren’t any other companies that can realistically get into the gaming hardware war. So any people who want to start a company in the gaming industry will definitely have to stick to software development (or of course peripherals for the consoles).
November 16th, 2006 at 11:20 pm
so they would have had more money if they didn’t make the ps3, i sense genious’. so what are tehy benefiting from if they lose money with each purchase, and it will only get worse in teh future due to probable price drops.
November 17th, 2006 at 12:23 am
eventually sony will find a way to manufacture the ps3 cheaper as technology gets better and prices of the devices used within are lowered. still, they are taking a huge risk with the blu-ray.
it really amazes me that with sony’s unsuccessful track record of new formats (beta, mini disc, umd), that they would take such a big risk.
can you imagine if blu-ray does not become the next disc format, and all those people out there have a ps3 that utilizes a dead technology? i mean, the majority of the price of the ps3 is because of the blu-ray drive. when will they ever learn?
November 17th, 2006 at 5:43 am
PS3 is also sold at a remarkable loss for it’s buyers.