Report: Sony Still Losing Money On Every PS3 Sold

One of the main reasons Sony ditched the "George Foreman" build of the PS3 and went with the new "Slim" was to cut back on manufacturing costs. Try and get back into the black. But they're not quite there.

According to a report on iSuppli - who have been doing this kind of thing for a while now - the total cost of manufacturing a PS3 Slim as of December 2009 is $US336.27. And they sell for $US299. Meaning Sony are still slugged with a $US37 loss for every console sold.

Sounds bad - and when you multiply that $US37 by millions, it certainly seems that way - but it's a damn sight less money than they were losing this time last year.

With the cost of materials continually on the decline, provided Sony can stick at a $US299 price point for a while to come, you'd expect the PS3 to start generating a profit sometime next year. Sony Gets One Step Closer to Breakeven Point with Latest PlayStation 3 Design [iSuppli]


Comments

    also whats gona hit them is the lack of refined manufacturing. The more u manufacture the same thing the more refined the costs. since they made a new ps3 they reset the last 2-3 years.

      Isn't the slim technically a refinement in itself.. its the same components in many cases, the cell processor doesn't get any more expensive because its in a new case..

      Sony aren't stupid, if they can take a hit in the cost of redesiging a new version console and the initial outlay of manufacturing Im sure theyve done the math and will make ps3 more profitable sooner..

    they would lose more than 37 dollars a unit because sony doesn't sell them to retailers for 299

      I was under the impression that the retailers didn't make money from systems, meaning sony would be getting the full US$299 from each system

        The retailer is probably making $10-15 AU per unit..

        When I used to sell consoles we made about $7 on a pro 360..

        wtf? no retailed would take on a product that in itself would not be profitable, yes I know there are various bundles that invalidate this, but that's the retailer's choice. Nobody wants to lose money on a product at it's full worth.

          It's called add-on sales. HDMI cables, controllers, extended warranties,hell even games. Back in the day we used to make $1-3 profit on the original Playstation and make up the loss (yes, that much "profit" is still a loss, too) with games, extra controllers and warranties. You put a device in a home that has the consumer coming back for more games that sometimes had a 40%-%60 markup on 'em, you made your KPA for the month.

          Its retail competition that drives this tiny profit margin, and I can tell you that what theyre saying here is correct. We make nothing on the ps3 itself, but thats the way the cookie crumbles.

    From ever since I can remember and I'm talking Mega Drive/Genesis SNES era the money was never in the machine and always in the games.

    I highly doubt people buy just a console, and have you ever noticed how EB and some other places upsell warranties, guides, cables, extra controllers and a whole gaggle of things when you buy a machine.

    Also they want you to always come to them for your PS3 gear it's a marketing tactic, you spend all your money in the same store it's not going to their competitor's even if they don't get as much on initial purchase. Why do you think Pre-Orders are such a big deal. A paid for game before it's even out. Guarunteed customer.

      Yeah, it's all about the attachment rate, the amount of games that get sold per machine. While Nintendo sell bajillions of Wiis, they don't sell nearly as many games per Wii as Microsoft do per 360, who- unless it's changed recently- have the best attachment rate of the consoles.

    wow i thought they were about coming even now, so im guessing all this technology is going to push them through next gen, as still a very powerful console but much cheaper. theres a lot of potential to still push its hardware which isnt being used, but if this is going to last them 10 yearsm it can be one of the best investments made or a terrible down turn in the end

    The best thing about this is that the PS3 isn't going away anytime soon. Sony is always committed to longevity of their consoles (hence why the PS2 is still around) so consumers can feel comfortable purchasing a PS3 knowing that there isn't a new model coming along anytime soon. I really do hope that Microsoft and Nintendo follow suit. The days of 5yr life cycles for consoles should be over. I'm all for new tech, but I really would like to see this generation go longer as a whole compared to the last.

    After what Matthew just said i realised something. Who plays a Xbox anymore? Who plays a gamecube anymore? I have a PS3 and i'm actually buying a ps2 (Again, since i traded mine in along with my games, how could i be so stupid) and restocking games.

    Of course thats the US price.. It may be profitable elsewhere. Does the math take into account the volume discounts sony would be getting on the components and that the licencing fees on some of the tech goes to them (in part at least)?

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