Sony Still Losing Dollars (Well, Cents) On Every PS3 Sold

Last we checked, Sony was losing money on every PS3 sold, at $US37 a pop. Checking in this week, we find the company is still losing money on every PS3 sold. To the tune of... $US0.06 a console.

Yes, having reduced the functionality and the size of the console, and benefited from natural declines in the cost of component parts since the PS3 launched in 2006, Sony has got the PS3 down to the point where it's only losing six cents per machine. Which, really, when you're talking about Sony's outlays as a whole, is nothing.

Soon enough the console will be turning a profit (Sony estimates a 15 per cent reduction in manufacturing costs by 2011) with every one sold, which when you consider it launched at $599 - and Sony's financial troubles of late - is an excellent result for the company.

Cost Cutting Pays Off at Sony [Wall Street Journal]


Comments

    That's still poor effort considering how long the PS3 has been released for. Even if you wanna use the excuse of going from Fat to less-fat.

    SONY got no where near a profit with the fat and started off with a still large loss with the Slim's release. And only NOW are they near a profit.

    It's understandable that the companies don't make much during the first 12 months or so, but for YEARS its kinda ridiculous. Even if they make money off software etc... I'm no marketing whiz or business executive, i admit that, but you would think the companies would spend more time on development of their products to ensure the least possible loss BEFORE its even released. Fanboys can use the Blu-Ray excuse all they like and its a pretty solid point compared to a 360 - but IMO i still think its kinda embarrassing that they are only near a profit at this stage into its life cycle.

    Gizmodo says they're losing $0.06 per dollar, not per console. Which would mean $17.94 per $299 console sold (6%):

    “Sony loses about six cents for every dollar of PS3 hardware sales.”

    http://www.gizmodo.com.au/2010/02/sony-still-loses-money-on-every-ps3-they-sell/

    but every single ps3 owner needs to BUY their games, unlike xbox where they still loose alot to piracy.

    its only just been hacked and even still, nothing has been officially cracked on it(ie played backups)

    Your exactly right that they would put alot of thought before they went ahead with this, and thats why its probably feasible that they can make all their money back on software alone.

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