News

Sony loses a ton on each sold PS3

Posted on Friday, 17 November 2006 by Speed, source: Gamespot
Gamespot is reporting that apparently, Sony is losing quite a lot of money on each Playstation3 that gets sold

According to the study, the hardware for the 20-gigabyte PS3 costs $805.85 alone--$306.85 more than the stated list price of $499. The 60GB model hardware costs $840.35, $241.35 more than the $599 sticker price Sony announced at the Electronic Entertainment Expo earlier this year. (Note: Sony did not announce price points of $499.99 and $599.99 at E3, although some retailers list the consoles' prices as such.)

Meanwhile, Microsoft lost about $126 on each Xbox360 Premium Pack in the beginning. Quite a difference with Sony loosing between $240 and $300 on each PS3. Also, the losses on each PS3 do not include the costs for A/V cables, power cord, or Sixaxis controller that come bundled with both models of the PS3 nor the Will Ferrell comedy Talledega Nights Blu-Ray disc.

Estimates are that currently, Microsoft is earning about $75.70 on each sold Xbox360.
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4 Comment(s)

NINJAFISH

NINJAFISH

I thought we already knew this?
I thought we already knew this?
Quote
Posted on 22:19, November 17th 2006
Anonymous

Anonymous

isnt that illegal competition, i mean the one with the deepest pockets will win...
isnt that illegal competition, i mean the one with the deepest pockets will win...
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Posted on 14:15, November 19th 2006
Vexxed

Vexxed

Sony may be willing to lose $241.35 for each 60GB PS3 sold but there's no way im willing to lose $599 on buying one :P.
Sony may be willing to lose $241.35 for each 60GB PS3 sold but there's no way im willing to lose $599 on buying one :P.
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Posted on 14:23, November 19th 2006
NINJAFISH

NINJAFISH

isnt that illegal competition, i mean the one with the deepest pockets will win...


Who said their going to win? Sony is in debt big time, and software sales aren't going that well.


You know what would have been a crazy strategy, if they had made a $300 console, and sold it for $75. Same loss, but I bet everyone would buy one and almost guarantee 100% market saturation.
[quote]isnt that illegal competition, i mean the one with the deepest pockets will win...[/quote] Who said their going to win? Sony is in debt big time, and software sales aren't going that well. You know what would have been a crazy strategy, if they had made a $300 console, and sold it for $75. Same loss, but I bet everyone would buy one and almost guarantee 100% market saturation.
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Posted on 19:50, November 21st 2006
 

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