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Analysts Claim Sony is losing $100 per PS3 Slim

Raist

Banned
Jan 27, 2007
24,543
0
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TOAO_Cyrus said:
And power supply.

The PS3 does not have any PSU. The Cell is so powerful that it produces enough electricity to cover the console's needs. Out of thin air.
 

Drkirby

Corporate Apologist
Jan 29, 2008
42,342
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Raist said:
Actually there's $1,032,270,512 in that image.


Shush now, the excess is our cut. They will never notice...
 

LuCkymoON

Banned
Apr 7, 2005
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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.
actually you would be surprised what these large multinational companies pay for in "bulk pricing"
its not that big of a discount you may think it is.
 

nib95

Banned
Feb 26, 2007
34,618
2
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Didn't Sony themselves say they'd cut production costs by 70%? Wouldn't that make this analyst wrong? Not the first to be wrong by a long shot lol.
 

Hypereides

Member
Jan 19, 2009
7,896
676
1,035
Denmark
Holy shit, we're on a good way in this thread. I see whining, grasping and stealth (and not so stealthy) trolling from both sides here.

Armchair analysts here promoting their true intentions from both sides. Well done at surpressing your urges gentlemen. *slow clap*
 

Psychotext

Member
Jun 15, 2007
35,933
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1,175
nib95 said:
Didn't Sony themselves say they'd cut production costs by 70%? Wouldn't that make this analyst wrong? Not the first to be wrong by a long shot lol.
Sony themselves have said they're still losing money on the hardware... it's really just a question of how much.
 

Mandoric

Banned
Jan 6, 2005
7,529
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itt we discuss exchange rates and how the yen-denominated price to make a ps3 has gone down by 20% just to devaluation of the dollar and, by extension, the yuan that is linked to it

no, wait, that makes no sense how would that make the realistic 50% production cost cuts in dollar converted from yuan terms on a ps3 actually be 70%? let's dismiss this idea and go back to hurfing about lying execs and analysts.

(sony's yearly reports also show a projection of losing lots of money in the gaming division but having a major sales increase. who wants to guess what that implies?)
 

vocab

Member
Feb 12, 2009
16,540
1
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Why would Sony drop the price to lose even more money? They rode on $399 as long as they can until the technology got cheap. The total goal of the slim was to use less parts, and cheaper parts.
 

dejay

Banned
Mar 27, 2007
10,645
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Sydney
Clinton514 said:
You actually believe in an SDF? :lol

No I don't believe in a structured organisation calling themselves the SDF. I also don't believe in an Xbot army. However, both exist in spirit among many, many of the members of this board. You see it everywhere; people who shouldn't care about a piece of plastic and silicone are devoting so much emotional energy trying to either attack or defend a corporation simply because they have chosen to invest solely in that company's console. It's very often turned many threads to shit, like the GT5 and Forza 3 threads.

thuway said:
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.

Yeah, you're right, this thread is purely one sided...

WTFing said:

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

Honestly, I don't give a fuck which console sells more, as long as the companies stay healthy enough to keep investing and competing to provide compelling entertainment for gamers.
 

iceatcs

Junior Member
Jul 9, 2007
10,615
0
1,110
London
LOL, analysts... Fanboy's fav weapon.

Anyway. I'll rather look at market finance report on the end of each quarter. If I share, I might look some analysts but I won't take them too much.
 

WTFing

Banned
Aug 10, 2006
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www.neogaf.com
dejay said:
...
Honestly, I don't give a fuck which console sells more, as long as the companies stay healthy enough to keep investing and competing to provide compelling entertainment for gamers.
And I don't care too, and I'll add that I don't care if said companies are healty or not. Today I own a sony console, tomorrow maybe not, yesterday I was playing with the 360 before that with the xbox1. before that I was playing with every snes model, sega, nec and ... I'm not married to any company man. I just want to put a game in the console I own and play with a reliable product. The 360 is not, and you know this.
Shocking! I never owned a PS2.
Chill.
 

gregor7777

Banned
Jan 17, 2007
13,379
0
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WTFing said:
And I don't care too, and I'll add that I don't care if said companies are healty or not. Today I own a sony console, tomorrow maybe not, yesterday I was playing with the 360 before that with the xbox1. before that I was playing with every snes model, sega, nec and ... I'm not married to any company man. I just want to put a game in the console I own and play with a reliable product. The 360 is not, and you know this.
Shocking! I never owned a PS2.
Chill.

I think you care more than anyone in this thread. :lol

Taurus said:
No, they are not. Kaz Hirai himself told this in an interview.


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

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.

Thanks for the link Psychotext!

Probably should be posted on every page of this thread, however long it lasts.
 

tokkun

Member
Jan 29, 2007
16,092
0
0
Madison, WI
At this point, with manufacturing yield under control, just what is it that is supposed to make the PS3 so much more expensive to produce compared to the 360?
 

Conflict NZ

Member
Jul 19, 2007
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0
1,025
It seems a lot of people here are confusing "At Launch" production costs with "Original" productions costs. The consoles made for launch are usually made for a higher price than those at launch or after launch. The reason for this is at the beginning of each cycle a manufacturer charges higher amounts incase the project falls through, that way if it does then the manufacturer is not hit as hard. If this was the case for Sony then it is feasible that if a PS3 cost $800 at launch, pre-launch it could have been from $900 to $1100. And it would be 70% of that cost, not the at launch cost that would have been decreased.
 

DogWelder

Member
Aug 2, 2008
3,397
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0
WTFing said:
Obviously I care when someone says that I'm a console warrior, I don't like that :lol
WTFing said:
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
Post histories don't lie, but it's even funnier when it comes from the same thread.
 

Raist

Banned
Jan 27, 2007
24,543
0
0
WTFing said:
And I don't care too, and I'll add that I don't care if said companies are healty or not. Today I own a sony console, tomorrow maybe not, yesterday I was playing with the 360 before that with the xbox1. before that I was playing with every snes model, sega, nec and ... I'm not married to any company man. I just want to put a game in the console I own and play with a reliable product. The 360 is not, and you know this.
Shocking! I never owned a PS2.
Chill.

BACK OFF XBOT
 

mintylurb

Member
Sep 20, 2006
3,547
0
1,115
So, sony is still losing money. I suppose it's good news for ms since they know sony won't be able to cut the price of the ps3 for a while.
 
Jun 16, 2006
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i was one of the many $299 naysayers. i'm happy that the ps3 will get into more hands, expanding the HD gaming base but my thought at sony coming it at $299 was basically if they pulled it off its almost like a last ditch effort. they had no other option even if it means losing money. 3rd parties were gonna drop support and MS would have continually gained share.

Thing is they have no where else to move now IMO. what are they gonna do if this doesnt work? they cant possibly go any lower so the only option would be to ride it out til motion control is there for all 3 of the console manufacturers then its almost as if it'll be yet again another reset but can they make it that far? if this fails to work then besides the existing base who are they going to sell motion control to? this next 6 months is going to be VERY interesting.
 

Cheerilee

Member
Apr 14, 2005
10,013
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dolemite said:
Well, at the moment it's all bullshit and speculations. Sony's second quarter statement is what matters.
As I recall from the early PSP days, someone said that since Sony buys many parts from themselves, they pay themselves above and below market value and move their profit/loss numbers around on a whim as it suits them. Or at least, that's what they did under Kutaragi.
 

.GqueB.

Banned
Dec 6, 2008
16,805
1
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
I always come into threads like this reading along waiting for that one post thats gonna make me stop reading the thread. Congrats.

Congrats for your page 1 victory.
 

Mindlog

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Aug 31, 2007
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highluxury said:
yay, guesstimates. Analysts are getting more and more awesome.

In a see of bubbling fandom, that is the foam.

Question to Hardware GAF:
How are console chip yields dealt with? Any given chip is produced and the wafer is tested. Those that aren't passed can occasionally be sold as a 'lesser' part. Can't really do that with a console... so what happens?
 

Psychotext

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Jun 15, 2007
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Mindlog said:
Question to Hardware GAF:
How are console chip yields dealt with? Any given chip is produced and the wafer is tested. Those that aren't passed can occasionally be sold as a 'lesser' part. Can't really do that with a console... so what happens?
Technically they're already using the "lesser" parts by using only 7 of the 8 SPUs on the die. It means that they can have a much better yield.

I guess any with 6 get binned. I don't know of any commercial variants of the CELL that use 6 PPUs.
 

gregor7777

Banned
Jan 17, 2007
13,379
0
0
Mindlog said:
In a see of bubbling fandom, that is the foam.

Question to Hardware GAF:
How are console chip yields dealt with? Any given chip is produced and the wafer is tested. Those that aren't passed can occasionally be sold as a 'lesser' part. Can't really do that with a console... so what happens?

Actually, I believe they ship the PS3 with a SPU disabled for that exact reason.

edit: beat
 

Mindlog

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Aug 31, 2007
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Psychotext said:
Technically they're already using the "lesser" parts by using only 7 of the 8 SPUs on the die. It means that they can have a much better yield.

I guess any with 6 get binned. I don't know of any commercial variants of the CELL that use 6 PPUs.

That's what I almost remembered :] tyvm

I figure there are quite a few various console components that could get binned, but for who? Then again that probably goes for a lot of electronic products.
 

gregor7777

Banned
Jan 17, 2007
13,379
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Mindlog said:
That's what I almost remembered :] tyvm

I figure there are quite a few various console components that could get binned, but for who? Then again that probably goes for a lot of electronic products.

They probably take a loss on a lot of them. I can't imagine there are many applications for them.

How many SPUs do they require for those IBM blade servers?
 

percephone

Neo Member
Dec 5, 2008
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0
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LuCkymoON said:
actually you would be surprised what these large multinational companies pay for in "bulk pricing"
its not that big of a discount you may think it is.

Exactly, even if you buy in massive quantities. The suppliers won't sell bellow his cost.
 

gregor7777

Banned
Jan 17, 2007
13,379
0
0
percephone said:
Exactly, even if you buy in massive quantities. The suppliers won't sell bellow his cost.

Depends on what it is. Some categories of items carry huge retail premiums, some not so much.