Sony Still Loses Money on Every PS3 They Sell


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Sony Still Loses Money on Every PS3 They Sell

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A tiny but significant factoid in Sony's earnings report from the WSJ: "Sony loses about six cents for every dollar of PS3 hardware sales."

Educated guesser of component prices iSuppli had deduced that Sony was finally eking out a little bit of profit on every PS3 Slim they sold, thanks to lower costs, but apparently, not the case! They're hoping to cut production costs by 15 percent by March 2011. Hey, at least PS3 sales were up 44 percent. On the other hand, no one's buying the PSP Go. Sony cut their sales estimates by third for the year.

Sony did actually make money this quarter—the first time in a year—but it was by essentially ravaging the company to cut over $3 billion in costs: A fifth of its plants are gone, along with 20,000 jobs.

Source: Gizmodo

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it would be offset none the less in profits from other sections of ps3 business considering that small amount so eh not like they're manufacturing on overdraft budget.

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I'm sure I read somewhere that the Xbox only recently went into the black. Either way, doesn't really matter. Just one of those things.

2 years making money on the Xbox now.

A fifth of its plants are gone, along with 20,000 jobs.

20,000 jobs? Dang, that is a lot of jobs. But in this economy, downsizing has become expected unfortunately. sad.gif

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I don't care so long as the price doesn't go back up. They make plenty of money elsewhere to recoup the loss, I'm sure.

The price won't be going back up, you don't need to worry about that.

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I bet Sony are extremely thankful that it hasn't been compromised.

The xbox must have gotten a fair amount of purchases just by pirates/replacing rrods/bans etc.

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The xbox must have gotten a fair amount of purchases just by replacing rrods/bans etc.

It's probably a trivial to a non noticeable amount. RRODs are 3 year warranties.

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Whenever I see articles like these it makes me think how much technology is in one of these puppies and how much they could, in theory, charge if they were just an up-and-coming company concerned about their bottom line from day one.

This is what upsets me about the Wii, they (Nintendo) claim that they have been basically printing money with the thing for quite some time. Well, maybe pass some of that onto the customer? Maybe make it $150 (or less), not $199. It goes to show how cheap the technology is in one of those Wii's but yet they charge an arm & a leg for basically 10 year old technology. I'm glad some companies try to stay competitive despite knowing they will take it in the shorts (hardware wise, I imagine they make up for it in other services (software, etc)). I don't feel bad for spending $400 on my PS3, even though it was more than I've ever spent on a single console in my entire life.

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I'm sure I read somewhere that the Xbox only recently went into the black. Either way, doesn't really matter. Just one of those things.

The 360 has been turning a profit for awhile now, at least 2 years.

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I bet Sony are extremely thankful that it hasn't been compromised.

The xbox must have gotten a fair amount of purchases just by pirates/replacing rrods/bans etc.

The reason people don't buy PS3 is problably because it cannot be pirated yet.

The Wii is (was) selling like hotcakes and the Xbox 360 is now starting to sell strong.

The PS3? Still last place.

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The reason people don't buy PS3 is problably because it cannot be pirated yet.

The Wii is (was) selling like hotcakes and the Xbox 360 is now starting to sell strong.

The PS3? Still last place.

Pirating has nothing to do with how it's selling. :rolleyes:

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The reason people don't buy PS3 is problably because it cannot be pirated yet.

It amazes me that you believe that. I've seen and played some nice games on the PS3, but I don't own one because I refuse to willingly give any money to Sony.

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i think they know what they're doing, after all everyone is getting a playstation 3 now which means more games and accessories to be sold...etc...

I'm sure they do but the stockholders are the ones that need to know (aka see some improvement in their bank accounts as a result of Sony stock).

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