Sony losing hundreds on each PS3

[ch.AzN 0]

iSuppli breakdown pegs cost of manufacturing $499 20GB console at $805, $599 60GB console at $840.

By Tor Thorsen, GameSpot

Posted Nov 16, 2006 7:52 pm ET

 

When the Xbox 360 went on sale last year, BusinessWeek commissioned tech researcher iSuppli to take apart the console and estimate how much it cost to manufacture. The firm concluded that, including all pack-in accessories (hard drive, controller, cables, and so on), each premium 360 set Microsoft back some $126. Before labor, just the parts it took to make the console cost $470--$71 more than the full-fledged system's $399 price tag.

 

This week, iSuppli conducted a similar cost-analysis study of the PlayStation 3--with even more shocking results. 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.)

 

Neither of the iSuppli estimates includes the cost of the A/V cables, power cord, or Sixaxis controller that come bundled with both models of the PS3. The initial launch shipment will also come with a Blu-ray disc copy of the Will Ferrell comedy Talledega Nights. "The size of Sony's loss per unit is remarkable, even for the videogame console business," read the iSuppli report.

 

However, despite the steep price, iSuppli still thinks the PS3 delivers plenty of bang for a buyer's buck. "The reason why the PlayStation 3 is so costly to produce is because it has incredible processing power," said Andrew Rassweiler, teardown services manager and senior analyst for iSuppli. "If someone had shown me the PlayStation 3 motherboard from afar without telling me what it was, I would have assumed it was for a network switch or an enterprise server."

 

Though it had no breakdown of the Wii, this week's iSuppli study did comment on the cost of another next-gen console. Thanks to streamlined processes and ample component supplies, iSuppli estimates that Microsoft now makes $75.70 per Xbox 360 console.

 

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They are getting owned...

[///M 75]

thats what you think ..

 

Chinese never get owned when it comes to selling stuff.

[Xthar 136]

totally

 

Once again.

PS3>Wii(GAY)

PS3>XBOX360

PS3> ALL

[///M 75]

Well thats not true Xthar..

 

remember that I own 20 180s?

[ch.AzN 0]

thats what you think ..

 

Chinese never get owned when it comes to selling stuff.

yeah...because sony is chinese right?

 

 

:ermm:

[ViperSRT3g 224]

Sony is Japanese.... And yes it's losing hundreds of dollars for each PS3 sold. Because of the blue ray discs, it jacks the price up by a few hundred bucks. In order to increase sales of the system, sony decreased the price to make it affordable, or at least more affordable for the average joe. And it's still kinda expensive...

[Zldartz 0]

only idiots would buy a ps3 for 800 thats like buying a computer zzz...

Did I say idiots? haha

[ch.AzN 0]

its too early for bluray...but bluray will be used next gen...like the gen after probably

[Mastric 77]

totally

 

Once again.

PS3>Wii(GAY)

PS3>XBOX360

PS3> ALL

 

 

 

holy shit i agree with Xthar for once O.O

 

 

 

IT"S THE END OF THE WORLD!

[ch.AzN 0]

right

[Poply 178]

holy shit i agree with Xthar for once O.O

 

 

 

IT"S THE END OF THE WORLD!

i'd figure a global mod would know not to post that in the ps section, and even more so i would expect an admin to correct the global mod's mistake.

[Mastric 77]

What Mistake? how he didn't Put PS3 > ALL on top in a priority order?

[Poply 178]

how he was making other consoles look bad and calling the wii gay. we have a section just for that.

[Mastric 77]

Dude they called it the WII(wee) how can you say that isn't gay sounding...

 

And we have a section dedicated to Xthar and his sexual preference consering game consoles and his free time?

[Poply 178]

opinions aren't facts. don't try and make them out to be.

[Mastric 77]

My opionions are based on info i have gathers from other facts.

[Poply 178]

what fact (or facts) supports that the wii is a homosexual gaming console?

[Mastric 77]

It accepted Xthar's offer of sexual advances

[Poply 178]

the wii doesn't have a sexual preference or sexual desires. no more of this.

[Poply 178]

the wii doesn't have a sexual preference or sexual desires. no more of this.

[Mastric 77]

Sure...

[Xthar 136]

Wii was made by gay people....

[Div 0]

yea seriously, when your controller can double as a dildo...you fucked up. Bad...

Edited November 24, 2006 by Div

[Poply 178]

yea seriously, when your controller can double as a dildo...you fucked up. Bad...

[Sgt. Snoo Snoo 60]

You guys aren't taking into account the spectacular performance of the machine. They may be going backwards in price, but online capabilities and games will be more than enough to suffice and stable their income. Not even mentioning the plugins, and extra attatchments the thing is capable of holding.