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Analysts Claim Sony is losing $100 per PS3 Slim

meppi

Member
May 15, 2005
9,949
0
1,455
thuway said:
He's just bitter because he's a Wii Fanboy. Shit like this makes me wonder how some people aren't banned.
Jesus, you can't take a joke?
 
Apr 27, 2009
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ivedoneyourmom said:
If they dropped the price of manufacture by 70%, doesn't that mean, even if the first PS3s costed 1000$ to make, they now would be breaking even at selling for 300$?

Yeah, but they don't get 300 dollars from retailers.
 

diddlyD

Banned
Feb 20, 2007
1,974
0
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thuway said:
What most people don't realize also is that Sony buys in massive bulk and gets huge discounts on all products. Its hard to truly nail down what true cost is.

that was my point. even using off the shelf retail prices, the system costs at most $325. sony makes the parts for a lot cheaper than that. i don't know how these 'analysts' could possibly come up with a $400 estimate.

PopcornMegaphone said:
Yeah, but they don't get 300 dollars from retailers.

actually they get really close. console hardware typically sells to retail for maybe $5 less than the suggested retail price, at most. the profit for retail is all on software.
 

Tobor

Member
Sep 15, 2006
41,041
0
0
ViperVisor said:
I doubt it.

They wouldn't do a slim for shits and giggles. It had to be part of the cost cutting from day 1. They can't throw more money at a problem hoping for the best. Hole is already very deep.
Day 1 after firing Kutaragi, anyway.
 

Prezhulio

Member
Jun 3, 2008
2,058
0
0
boston
thuway said:
What most people don't realize also is that Sony buys in massive bulk and gets huge discounts on all products. Its hard to truly nail down what true cost is.


yep. and the case costing sony $50? hahaha, no.
 

AndyD

aka andydumi
Jan 24, 2007
19,100
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Nashville, USA
Ultimo hombre said:
You'll get a better idea when the financials come out. You're looking at a $100 price drop on a product they were losing $40 per unit sold. Granted there is a redesign but to assume the redesign shaved off $140 of cost per unit by the redesign might be wishful thinking.

Sony said the cost dropped almost 70%. To think that it cost 1300 or so at launch to make one is delusional.

Think that the previous analysis said they cost just over 800 to make at launch, a 60% drop would make it 320 to make one now. A 70% 240. So a happy medium of roughly 300 is much more plausible.
 
Apr 27, 2009
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diddlyD said:
actually they get really close. console hardware typically sells to retail for maybe $5 less than the suggested retail price, at most. the profit for retail is all on software.

The 5 dollars is the retailers margin, not their purchase price.
 

T Ghost

Member
Mar 25, 2007
701
1
855
Boston, MA
360voice.gamerdna.com
Sony should be either making zero profit on PS3 slim or making a little loss, under $30 per unit and expect that the production learning curve brings the cost down and they end up doing a little profit after another 5 million units. Otherwise sony wouldn't pull the $100 cut at all.
 

DieH@rd

Banned
Dec 9, 2006
35,046
4
0
I think that they are making small profit on PS3 Slim. Console is smaller, has less components, and all of the components are waaaay cheaper than few years ago.
 

Taurus

Member
Dec 3, 2006
3,195
0
0
The land of hope and glory
DieH@rd said:
I think that they are making small profit on PS3 Slim. Console is smaller, has less components, and all of the components are waaaay cheaper than few years ago.
No, they are not. Kaz Hirai himself told this in an interview.

Mr Hirai admitted that Sony already loses money on each console it sells. “If you’re just talking about the hardware alone, the quick answer is yes, we do lose money on every one. That makes good headlines, but I don’t actually know that that’s the true nature of the business that we’re all in, whether it’s PlayStation, Xbox or the Wii.
http://www.timesonline.co.uk/tol/news/uk/article6802297.ece

Thanks for the link Psychotext!
 

Tapiozona

Banned
Mar 12, 2007
3,776
0
0
DieH@rd said:
I think that they are making small profit on PS3 Slim. Console is smaller, has less components, and all of the components are waaaay cheaper than few years ago.

Well isn't that sound logic.
"I think"
Good enough for me. You must have some serious credentials. Even more impressive considering Sony's CFO said they were taking a loss.

But what does he know? Fanboys are OBVIOUSLY more knowledged than some stupid executive.

I mean you have a high school diploma, right? Good enough for me.
 

tintinrudd

Banned
Apr 1, 2009
270
0
0
thuway said:
What most people don't realize also is that Sony buys in massive bulk and gets huge discounts on all products. Its hard to truly nail down what true cost is.

I think he's joking.

ot, Would not be surprised, good luck to them.
 

KtSlime

Member
Feb 28, 2009
9,062
0
0
Tokyo
Someone needs to get a slim and gut it so we can do cost guestimations!

But seriously, speculating the cost of something that no one has even seen, and PR statements are both non-reliable sources of information. All we do know is Sony is making the PS3 Slim, selling it for 299 dollars, and are okay with whatever they loose or gain from it.
 
Jan 28, 2007
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thuway said:
http://www.andriasang.com/e/blog/2009/08/20/ps3_losses/


I don't how true this is. With Sony saying they reduced the cost of the PS3 by 70%. Any wild guesses?

Easy, earlier this year, Stringer noted that Sony still loses money on every PS3. Since the slim is supposedly 299, that means at least a 100 dollar loss on each PS3 slim sold.

Tada!

I can do analyze, me.


Besides, Sony only mentioned a percentage. Without further information, that could mean anything. The percentage is completely useless, but I see that this is not a problem for people to use in their flawed arguments.
 

Chumly

Member
Apr 3, 2007
8,124
0
0
I dont know why people are laughing at this claim so much. We know that the fat PS3 cost ~450$ at least and we know they are STILL losing money on the slim. I dont think they are losing 100$ but I bet they are still losing 50$ at least.
 

duk

Banned
May 10, 2006
8,487
0
0
diddlyD said:
using price watch

core i7 3.2 ghz = $870 (comparable cpu to cell)
80gb notebook HD = $25
geforce 7800 = $45
512mb ram = $31
case = $50
blu-ray drive = 75$

cost of ps3 slim to manufacture = $1096. ouch!

but really if you take into account the cell doesn't cost more than 100 bucks by now, you come away with a cost of $326 using off the shelf retail prices. maybe sony shops at best buy, that would probably push it up to $400 :lol

:lol :lol :lol

but free online mp!!
 
Jul 18, 2008
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Philadelphia
We last heard specifics on PS3's losses in May through a more official source. Back then, Sony CFO Nobuyuki Oneda revealed that Sony was, as of March, still taking a 10% hit on each PS3 sold. Given the PS3's price at the time, 10% would mean a cost to Sony of about ¥44,000.

So, that means that the non-slim PS3 was costing them t ¥44,000, and people don't think there was a price reduction from the regular PS3 to the Slim cost? Really? The reduced size of the components, the removal of several of the smaller boards and probably a completely re-engineered system almost definately reduced the cost of these things. Did it reduce it by a full ¥14,000+ (what is it now, ¥29,800)? Maybe, maybe not, but it's definitely going to be much less costly than that ¥44,000 number, and in worse case scenario I would imagine they're still losing 10% on every unit, which puts the price at around ¥33,000 to manufacture.

Edit:
Of course, if we're only considering the loss they take on clearing out the original units from the retail stream, then yes, it probably is $100 per unit :lol

I imagine there aren't many of them left in the supply chain though.
 

Open Source

Banned
Jun 11, 2004
3,846
0
0
Oakland, CA
nightez said:
I think Sony officially stated that they don't lose money on the hardware anymore. They also said costs have dropped dramatically.

...

Didn't they also officially state that there was no price drop coming?
 

Ninja Moomin

Banned
Dec 8, 2008
3,131
0
0
wow.... sony get a bit of good press and people start getting desperate.

:lol


seriously though who cares what sony do with their pricing internally.... what faces the consumer is what matters... and it's not like the hardware is the only revenue stream for SCE.
 

thuway

Member
Feb 25, 2008
10,994
0
1,130
NinjaFusion said:
wow.... sony get a bit of good press and people start getting desperate.

:lol


seriously though who cares what sony do with their pricing internally.... what faces the consumer is what matters... and it's not like the hardware is the only revenue stream for SCE.


This thread's intention is to clear up the FUD not to propagate it.
 

Four_Chamber

Member
May 3, 2009
2,713
0
0
NinjaFusion said:
wow.... sony get a bit of good press and people start getting desperate.

:lol


seriously though who cares what sony do with their pricing internally.... what faces the consumer is what matters... and it's not like the hardware is the only revenue stream for SCE.

Desperate? :lol

An analyst makes an estimate and that's desperate? Defensive much? Clearly that analyst is a mega 360 fanboy
 

Hunahan

Banned
Sep 22, 2006
2,429
0
0
Taurus said:
No, they are not. Kaz Hirai himself told this in an interview.


http://www.timesonline.co.uk/tol/news/uk/article6802297.ece

Thanks for the link Psychotext!
Wait....How the hell can he say this and not be called on the bluff:

Hirai said:
Mr Hirai admitted that Sony already loses money on each console it sells. “If you’re just talking about the hardware alone, the quick answer is yes, we do lose money on every one. That makes good headlines, but I don’t actually know that that’s the true nature of the business that we’re all in, whether it’s PlayStation, Xbox or the Wii.

“I think the better indicator is to look at the business as a whole platform, to say are you profitable in terms of the hardware, software and peripherals. And the answer to that question is yes.”

Sony games division, not profitable.

Hell, even Sony as an entire entity .....not profitable.

The answer to that is still "no" as last we heard...

What on earth is he driving at.
 

D4Danger

Unconfirmed Member
Dec 5, 2008
25,320
0
0
Loudninja said:
He did not specify the Slim.
.
Kazuo Hirai, president and group chief executive of Sony Computer Entertainment, told The Times at the inaugural Gamescom convention in Cologne: “We felt it was the right time to pass on the benefits of the fact that we’ve been able to reduce the number of components and their sizes. We wanted to pass the cost savings on to our consumers in the new price point.”

Mr Hirai admitted that Sony already loses money on each console it sells. “If you’re just talking about the hardware alone, the quick answer is yes, we do lose money on every one. That makes good headlines, but I don’t actually know that that’s the true nature of the business that we’re all in, whether it’s PlayStation, Xbox or the Wii.

he's talking about the Slim. I don't think it could be much clearer.
 

WTFing

Banned
Aug 10, 2006
2,504
0
0
Paris
www.neogaf.com
duk said:
:lol :lol :lol

but free online mp!!

1 billion for the RROD. And every month you and your friends pay for this. So awesome!
:lol :lol :lol
 
Jun 6, 2004
68,817
0
1,570
diddlyD said:
using price watch

core i7 3.2 ghz = $870 (comparable cpu to cell)
80gb notebook HD = $25
geforce 7800 = $45
512mb ram = $31
case = $50
blu-ray drive = 75$

cost of ps3 slim to manufacture = $1096. ouch!

but really if you take into account the cell doesn't cost more than 100 bucks by now, you come away with a cost of $326 using off the shelf retail prices. maybe sony shops at best buy, that would probably push it up to $400 :lol
motherboard? audio?
 

gofreak

GAF's Bob Woodward
Jun 8, 2004
43,345
2
1,645
Wow, lots of lol smileys going on in here. Y'all aren't that funny.

How much Sony was/is losing on the PS3 only really mattered to messageboard speculation when we weren't sure if they were going to pricecut, when we didn't know what price they'd come in at with the Slim.

Now that they have pricecut, I gotta ask - who cares? Unless you're a Sony shareholder?

FWIW, though, I highly doubt that analyst's speculation is accurate. If they were losing 10% on the fats (as per Sony themselves), in order to be losing 10k yen on the Slims, they'd have had to have reduced costs with the Slim by a mere 10%. I don't think that's likely - I think the cost reduction with the slim is more substantial than that.

Anyway, like I say, it doesn't matter. You got your 299 slim.
 

le.phat

Member
Dec 26, 2006
4,868
0
0
wow, looks like the fanboys at both camps are starting to peak! nice, hopefully the really rotten ones will finally get a ban to the face.
 

dejay

Banned
Mar 27, 2007
10,645
0
0
Sydney
NinjaFusion said:
wow.... sony get a bit of good press and people start getting desperate.

:lol

Equally as funny is the SDF kicking in, who claim they're the victims and don't ever do anything wrong in the console wars. Seriously, for every Xbot there seems to be 5 SDF dicks just jumping in to protect the honour and purity of their great company of choice. Honestly, the whole thing is sickening.
 

WTFing

Banned
Aug 10, 2006
2,504
0
0
Paris
www.neogaf.com
gofreak said:
Wow, lots of lol smileys going on in here. Y'all aren't that funny.

How much Sony was/is losing on the PS3 only really mattered to messageboard speculation when we weren't sure if they were going to pricecut, when we didn't know what price they'd come in at with the Slim.

Now that they have pricecut, I gotta ask - who cares? Unless you're a Sony shareholder?

FWIW, though, I highly doubt that analyst's speculation is accurate. If they were losing 10% on the fats (as per Sony themselves), in order to be lossing 10k yen on the Slims, they'd have had to have reduced costs with the Slim by a mere 10%. I don't think that's likely - I think the cost reduction with the slim is more substantial than that.

Anyway, like I say, it doesn't matter. You got your 299 slim.
Voilà, I'm sick of these guys spreading FUD since the first RROD or the new E74.

Play with your toy, and please let me play with mine. Thanks.
 

Raist

Banned
Jan 27, 2007
24,543
0
0
WTFing said:

1 billion for the RROD. And every month you and your friends pay for this. So awesome!
:lol :lol :lol

Actually there's $1,032,270,512 in that image.


 

thuway

Member
Feb 25, 2008
10,994
0
1,130
dejay said:
Equally as funny is the SDF kicking in, who claim they're the victims and don't ever do anything wrong in the console wars. Seriously, for every Xbot there seems to be 5 SDF dicks just jumping in to protect the honour and purity of their great company of choice. Honestly, the whole thing is sickening.


Seriously that just sounded stupid as hell. People don't go around waving SDF flags. I may participate in mostly Sony threads but no one is acting like the 360 sucks. Your just promoting console propaganda and stpidity. GTFO.
 

Q8D3vil

Member
Jul 16, 2009
9,166
0
0
sony losing money in production
ms losing money from rrod

seems fair to me

if only wii is losing money :p
 

Clinton514

Member
May 29, 2007
2,064
12
1,140
Canada
dejay said:
Equally as funny is the SDF kicking in, who claim they're the victims and don't ever do anything wrong in the console wars. Seriously, for every Xbot there seems to be 5 SDF dicks just jumping in to protect the honour and purity of their great company of choice. Honestly, the whole thing is sickening.
You actually believe in an SDF? :lol
 

-x.Red.x-

Member
Jul 26, 2008
2,517
0
765
Oh no, I must support Sony

I will buy three instead of the two that I will buy!
and PSPGO @$250


Come on... the high executives in Sony gotta pay their second homes somehow...
 

le.phat

Member
Dec 26, 2006
4,868
0
0
dejay said:
Equally as funny is the SDF kicking in, who claim they're the victims and don't ever do anything wrong in the console wars. Seriously, for every Xbot there seems to be 5 SDF dicks just jumping in to protect the honour and purity of their great company of choice. Honestly, the whole thing is sickening.


SDF?? lmfao, you know your mind is fanfucked the minute you start thinking and talking in factions :lol