Sony PS3 'costs at least $805-840' to manufacture

[zekrahminator]

Yesterday, Sony launched the PS3 in America. The 20GB model costs $499, and the 60GB model costs $599. However, these costs are nowhere near what Sony pays. Independent firm iSupply took the PS3 apart and analyzed it. They say that it can cost Sony no less then $806 to make a 20GB model of the PS3, a whopping $307 over retail price. This figure does not include the price of a controller, cables, or accessories. According to iSupply's estimates, the most expensive part for Sony to manufacture is the RSX, which is said to cost Sony $129 to make. The Cell probably costs Sony $89, and the Blu-ray drive $125. For comparison, the Xbox360 with hard drive costs Microsoft $323, which is $76 lower then the asked price of $399.

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[drade]

Hahah

Dumb ps3, they have to atleast sell 50 million to 80 million just to get there moeny back and they will only be able to sell about 2-6 million by march, finicially they are in trouble. Happy as hell Ive had my xbox for almost a year know got it the day it came out, I didn't even recall ti iI sitll ahve the first gen and it freezes a tiny bit once and a while but its runnin.

 

[cdawall]

lol stupid sony need to work on that now dont they

 

[jocksteeluk]

that the reason ninitendo went small on hardware specs - so they could be in proffit from the get go but you do have to take the estimated cos with a pich of salt, mass production would have lowered the cost of many parts of the ps3

 

[Alcpone]

Yesterday, Sony launched the PS3 in America. The 20GB model costs $499, and the 60GB model costs $599. However, these costs are nowhere near what Sony pays. Independent firm iSupply took the PS3 apart and analyzed it. They say that it can cost Sony no less then $806 to make a 20GB model of the PS3, a whopping $307 over retail price. This figure does not include the price of a controller, cables, or accessories. According to iSupply's estimates, the most expensive part for Sony to manufacture is the RSX, which is said to cost Sony $129 to make. The Cell probably costs Sony $89, and the Blu-ray drive $125. For comparison, the Xbox360 with hard drive costs Microsoft $323, which is $76 lower then the asked price of $399.

Source: The Register

How will they ever make there money back though? Will there components come down in price extremely fast while there console price stays @ the same amount? I cant understand it, the development costs would be a heafty 8 digit no. I would imagine!

 

[drade]

that the reason ninitendo went small on hardware specs - so they could be in proffit from the get go.

exactly, See sony has to be different, using all that expensive hardware in all, ridicolous. Also, somone got stabbed in america waiting for them, also poeple got robbed, beat up ect. And they want to sew sony, and sony says it's there fault waiting early. Sony is introuble, Also up here in America (Maine) One of the gamestop stores ps3 fryed while people were playing it.

 

[Jimmy 2004]

Well although the figures are new it has been known that Sony were going to make a large loss for a long time. Presumably they are relying on the money that they hopefully (for them) will make from licensing deals and Blu-Ray (which they have also put a lot of money into). IMO Sony are taking a lot of risks and although I have no doubt we'll be seeing a lot more from Sony in the next few years I wouldn't be suprised if the PS4 has a different focus, like Ninendo have with the Wii. Or maybe there won't be any more consoles now that they are so similar to PCs...

 

[Alcpone]

exactly, See sony has to be different, using all that expensive hardware in all, ridicolous. Also, somone got stabbed in america waiting for them, also poeple got robbed, beat up ect. And they want to sew sony, and sony says it's there fault waiting early. Sony is introuble, Also up here in America (Maine) One of the gamestop stores ps3 fryed while people were playing it.

Thats america for you, the uk wont long be behind you guys, why do you think grand theft auto is based in america?

No offense intended, just I tell it as I see it!

 

[OneCool]

Its called GAME SELLS PEOPLE!!!!!!!!!!!

They lost almost $200 apiece on the PS2 at launch....this is no different.


Sony doesnt make money on hardware they make money on software just like all the other companies.

 

[xvi]

How do people get away with charging 2,500 to 3,000 on eBay and craigslist?

When people get into console battles of who's better, I tell them about my console. It plays all the latest games in high detail. It's called "My Computer".

 

[spy2520]

yeah i heard sony makes much more money on games than they lose on systems, and if you think about it, sony sells a blu-ray drive by itsself for $1000 yet the ps3 is only $599 at most and includes one. sony never planned on making money from systems.

 

[newtekie1]

They estimates are always crap. They have no idea what Sony is paying for the parts, they just guess based on what they think they parts would retail for seperately. I hate to break it to everyone, but Sony isn't paying retail prices for these things.

When a company like sony comits to buying a part for a console from a company like NVidia they get one hell of a deal because NVidia knows that for the next 5-7 years they will be selling the same product. I highly doubt Sony is paying $130 for the RSX chip. My guess would be probably half that.

 

[overcast]

I'm so tired of hearing about these iSupply estimates of what costs what. They don't know shit about shit. They pulled the same nonsense with the new HD video devices. Saying they are losing all types of money over producing them.

So let me get this straight, its costs Sony 800 whatever to produce a PS3 correct? So why is it that a STANDALONE blurary player costs $1000 retail, while a PS3 costs $600 retail, that not only plays games, BUT has a bluray player as well. So let's see, a console/bluray players costs $800 to manufacturer and sells for $600 - but a standalone sells for $1000! What does it cost them to make it? $1500? Amazing, you add MORE technology and production costs go down.

The best one, was them piecing together the HDDVD costs, using retail prices for processors and everything else. Yeh I'm sure Toshiba is out there purchasing retail boxes of OLD processors from Newegg.

Their whole scheme is bullshit.

 

[shoman24v]

$805 x 400,000 units = $322,000,000 Cost for Sony to make PS3

I read somewhere that 400,000 units are expected to ship before Christmas? So, for shits 'n giggles we'll say it's costing Sony $322 million to manufacture 400k units.

Now Sony is selling them at $599 x 400,000 units = $239,600,000 is what Sony is "profiting".

$322,000,000 - $239,600,000 = $82,400,000

So, Sony is taking a $82.4 million dollar loss with the first 400k units.

Assuming each new game costs $50...

$82,400,000 / $50 per game = 1,648,000 copies of games just be back at zero.

Now I'm assuming that when you buy a game not all of your mony goes to Sony, it gets broken down... Store, Sony, Publisher, Developer... etc.

I don't know what the prices of accessores are going for...

Sony would have to sell a lot of shit just to make money.

I highly doubt that a Blue Ray drive costs $125 or something to make. Look at DVD burners, when they came out they were real expensive. Now you can get one for $30 that will burn a lable on your DVD.

All the electronics in the PS3 are mass produced, it can't cost much to make that stuff.

 

[KennyT772]

there is no way the prices are that high for each part. the blue lasers are expensive but at most $30 on top of the drive assembly...so like $60-$80 for the drive max. the cell sounds about $80ish and the rsx there or a little bit lower. but the casing could be no more then $20. motherboard about $30. hard drive $30-$50.

sony has never lost money on a console such as this is saying. the original psx's made about 5% profit per console but each game was like 10% profit. the ps1's were around 15% profit due to smaller size and less parts. ps2's were very very cheap to build except for the dvd drive, but that made tons of money in the us and japan as it was the cheapest dvd player of the time.

sony is taking a huuge risk on pushing bluray but...if they win they will own the market again such as teh ps2

 

[Aguiar]

... IMO Sony are taking a lot of risks and although I have no doubt we'll be seeing a lot more from Sony in the next few years I wouldn't be suprised if the PS4 has a different focus, like Ninendo have with the Wii. Or maybe there won't be any more consoles now that they are so similar to PCs...

Can´t people see that they are predicting future and taking PCs market in they´re hands...Pretty well sayd but wrong order...There will bee no more gamerPCs , cause consoles will take they´re market.

 

[Namslas90]

I still won't buy one untill the price goes down to under $300.00

 

[Agility]

Business is about risk taking. If you dont even predict then what are you doing?

 

[Athlon2K15]

there doing the same thing microsoft is,making a console at a loss and hoping there add-ons for example hard drives,cameras memory cards,faceplates,xbox live and games make up for that loss and it has to be working or u would think they would stop making them

 

[Namslas90]

don't forget the cost of unlocking ingame mods, levels etc.

 

[mout12]

Thats america for you, the uk wont long be behind you guys, why do you think grand theft auto is based in america?

No offense intended, just I tell it as I see it!

What a Pommy! Did you forget about 'Grand Theft Auto: London'... That's the Britts for you. Don't blame America for your country's shortcomings.

 

[Jimmy 2004]

Can´t people see that they are predicting future and taking PCs market in they´re hands...Pretty well sayd but wrong order...There will bee no more gamerPCs , cause consoles will take they´re market.

PC gaming won't stop, I'm sure of that. Even if consoles can do everything PCs do such as running a decent OS with apps, people like us will always want something we can upgrade.

 

[v-zero]

What a Pommy! Did you forget about 'Grand Theft Auto: London'... That's the Britts for you. Don't blame America for your country's shortcomings.

Are you Australian? Possibly a Zealander?

 

[mout12]

Are you Australian? Possibly a Zealander?

Neither, but I still feel that you're all Prisoners of Mother England.

 

[ktr]

sony taking risks on ps3? YEA RIGHT! sony is the biggest company in asia...(as GE is the biggest in america). sony doesnt just make video game and audio/video equipment...they also do heavy machinery, processing raw materials, civil machines, jnvoations, space equipment, and make/publish movies (new james bond is one of their works)...and god damn much more!!! their assets alone worth TRILLONS alone!

ps3 doesnt even scratch their wallets...