"It Only Does Everything"
Well, except make money. Three years after the launch of the original PS3, Sony has yet to profit from the hardware. It's getting close, though. The redesigned slim PlayStation 3 is smaller -- and thanks to the passage of time -- much cheaper to manufacture than the launch models, which lost Sony over $200 with each unit sold. According to iSuppli's teardown analysis, a current PS3 system costs $336.27 to make, about $500 cheaper than the first batch of consoles. With the system retailing for $300, Sony is still incurring at least a $40 loss per system, when you account for marketing and other additional costs. (This also means that Sony lost about $17.6 million over Black Friday week on PS3 hardware sales.)
The single most expensive component to the system is still Sony's proprietary Blu-ray disc drive, which is estimated to cost about $66 to make. Other components have dropped significantly in price thanks to a switch from 65nm conductors to 45nm. The end result is a far more power-efficient system that requires less power and cooling technologies. "In light of these factors, the PlayStation 3 probably is already at or near the tipping point for profitability," iSuppli's Andrew Rassweiler added. So, if for some reason you need Sony Corp to lose money, you better rush and buy a PS3 now before they make those things profitable!
[Via CNET]
Reader Comments (160)
Posted: Dec 12th 2009 3:12AM The1stMJC said
This is why I come to Joystiq not for the articles since they can be really slow on the news, but to watch these fanboys go ape shit and defend these corporations, that show no loyalty to them, as if their family's honor had been challenged.
Posted: Dec 12th 2009 4:47AM (Unverified) said
In Europe, Sony is selling the PS3 Slim for 299€ (roughly $440 at this moment). I'm just saying...
Posted: Dec 12th 2009 9:25AM (Unverified) said
Im from europe and thats true. The other day I was thinking it was weird the price both in europe and in the states is stated as 299, when both coins dont make the same value.
As you said, 299 euros is roughly 440 dollars, and ps3 slims are selling like hotcakes over here. Imagine the profitability they're doing only in here.
Reply
As you said, 299 euros is roughly 440 dollars, and ps3 slims are selling like hotcakes over here. Imagine the profitability they're doing only in here.
Posted: Dec 12th 2009 8:27AM scooterbaga said
They lost 100% of the price on my purchase when I bought one with BC on eBay.
Posted: Dec 12th 2009 12:08PM (Unverified) said
I would just like to say that we should all just care about enjoying video games not worrying about who published what or what system its on.
P.S. my xbox just got E74, Hurray!
P.S. my xbox just got E74, Hurray!
Posted: Dec 12th 2009 12:46PM benheck said
I can't get behind these estimates. This isn't like looking at someone holding an iPod and saying "Oh, they spent $200 for that". There is an economies of scale, especially with electronics manufacturing, that must be taken into effect.
Look at the price of a resistor on Digi-Key:
http://search.digikey.com/scripts/DkSearch/dksus.dll?Detail&name=1.0KQBK-ND
Once you buy any large quantity the price drops through the floor. It's actually cheaper to buy 200 resistors than 75! Or if you order this kind of stuff directly from China (where all these systems are built) it's far cheaper than that.
Thus Sony's price for 1 Blu-Ray drive isn't what a person would spend to get a replacement unit on eBay, not by a long shot. Really the Cell development was the biggest "liability" for the PS3, but again, the more they sell, the cheaper it becomes.
Flamewar comment: The PS3 - all versions - is far better built than the 360 and without question does a better job making regular DVD's look good on HDTV's. That said, for non-exclusive games I usually go 360 for achievements, and 360's community / services blow PS3 away.
Look at the price of a resistor on Digi-Key:
http://search.digikey.com/scripts/DkSearch/dksus.dll?Detail&name=1.0KQBK-ND
Once you buy any large quantity the price drops through the floor. It's actually cheaper to buy 200 resistors than 75! Or if you order this kind of stuff directly from China (where all these systems are built) it's far cheaper than that.
Thus Sony's price for 1 Blu-Ray drive isn't what a person would spend to get a replacement unit on eBay, not by a long shot. Really the Cell development was the biggest "liability" for the PS3, but again, the more they sell, the cheaper it becomes.
Flamewar comment: The PS3 - all versions - is far better built than the 360 and without question does a better job making regular DVD's look good on HDTV's. That said, for non-exclusive games I usually go 360 for achievements, and 360's community / services blow PS3 away.
Posted: Dec 12th 2009 4:16PM (Unverified) said
ps3 slim is close to profiting THAT'S IT THE INTERNET IS OFFICIALLY AWASH WITH MORONS
PS3 LOSS TO DATE IS AT LEAST 5 BILLION IN ORDER TO PROFIT YOU FIRST NEED TO REPLACE THAT HUGE LOSS
ARE YOU TELLING ME THAT SONY HAVE EARNED BACK THAT MONEY YEAH RIGHT IN YOUR FANBOY DREAMS
THE PS3 IS A HUGE DRAIN ON SONY AS OTHER DEPARTMENTS ALSO LOOSE LIKE TVS MONITORS OTHER AREAS OF SONY ARE ALSO OPERATING AT HUGE LOSS
TAKE A REALITY PILL FANBOYAS
PS3 SLIM IS A CORPORATION IN SURVIVAL MODE
PSPGO WAS A CHEEKY CASH COW THAT DIDNT HAPPEN
SONY ARE VERY MUCH SCREWED AND THATS A FACT NOT A INTERNET MYTH
COUGH COUGH EVERY NEGATIVE SAID ABOUT NINTENDO = MYTH
PS3 LOSS TO DATE IS AT LEAST 5 BILLION IN ORDER TO PROFIT YOU FIRST NEED TO REPLACE THAT HUGE LOSS
ARE YOU TELLING ME THAT SONY HAVE EARNED BACK THAT MONEY YEAH RIGHT IN YOUR FANBOY DREAMS
THE PS3 IS A HUGE DRAIN ON SONY AS OTHER DEPARTMENTS ALSO LOOSE LIKE TVS MONITORS OTHER AREAS OF SONY ARE ALSO OPERATING AT HUGE LOSS
TAKE A REALITY PILL FANBOYAS
PS3 SLIM IS A CORPORATION IN SURVIVAL MODE
PSPGO WAS A CHEEKY CASH COW THAT DIDNT HAPPEN
SONY ARE VERY MUCH SCREWED AND THATS A FACT NOT A INTERNET MYTH
COUGH COUGH EVERY NEGATIVE SAID ABOUT NINTENDO = MYTH
Posted: Dec 12th 2009 5:49PM Kinjiro said
Stop buying PS3s people. You're bankrupting Sony!!
Posted: Dec 13th 2009 3:19AM Marcus Carter said
HA HA YOU FAN BOYS ARE CRAZY. I ENJOY MY VARIETY IN SYSTEMS THE I HAVE . I'M NOBODIES FANBOY.
Posted: Dec 14th 2009 2:39PM GoonieGooGoo said
The PS3 is the only Playstation system to actually get worse with age...even the PS1 and PS2 improved.......(though the PS1 did have system link capabilities removed).....
This PS3 gimping from launch models sucks......
They should have at least made the PS2 compatibility a downloadable software option.
Though I paid 600$ each for 2 60GB Launch units....i am glad I have PS3s that have a ton more functionality than these new Slims.
This PS3 gimping from launch models sucks......
They should have at least made the PS2 compatibility a downloadable software option.
Though I paid 600$ each for 2 60GB Launch units....i am glad I have PS3s that have a ton more functionality than these new Slims.
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