profit0004 said:
Therumancer said:
Bunch of text that is wrong.... Blah blah.. consoles cost 30$ at most.... blah blah...
>>>----Therumancer--->
Microsoft and Sony both lose money on each console they sell and Nintendo makes a tiny amount if I recall correctly.
*Actually I am gonna bother to do some research just to quash some ignorance and give real figures....
3 mins later... google says:
PS3 costs 441$ to sell for 399.
http://www.edge-online.com/news/report-ps3-hardware-almost-break-even
HDD-equipped 360 console cost $470
http://www.gamespot.com/news/6140383.html
Nintendo makes 6$ on each Wii sold
http://www.joystiq.com/2008/12/01/forbes-nintendo-making-6-profit-on-every-wii-sold/
Wait, and you actually believe that?
Generally speaking I grow tired of some of the disrespectful responses I receive, but I'll bite for the moment, and post another response.
Simply put, I call BS on a lot of those claims for a lot of reasons. One other reason is that I have been doing stuff with computers for a VERY long time. Electronic components are exceptionally cheap to manufacture, and the markup on any kind of electronics hardware has always been ridiculous. This is why for a very long time you could (and still can to some extent) assemble your own uber-PC for peanuts compared to what they cost in the store. Albeit some of the manufacturers got wise to this when it became so common and started intentionally inflating the "base" prices for a lot of things like motherboard and chips. For a while a "trade war with Japan" caused prices on RAM to explode to lulzworthy prices as well.
The thing is though that especially when dealing with Sony and Microsoft we're dealing with companies that manufacture their own components or get them mega-cheap through buying ultra-wholesale or having other contracts. Especially in regards to Sony.
Your typical console basically costs these guys peanuts. The "price" of the components being largely based on the inflated costs that they could theoretically sell the components for individually if they had a buyers market. As the systems get older but remain in production they ultimatly become radically cheaper to manufacture even by that logic.
In Sony's case it was even started during the PS-3 shortage that the big problem was a shortage of the blu-ray laser components, which they were instead putting into blu-ray DVD players. Even cheaper to make than a console, but commanding mondo profit.
Any of these companies claiming they take a loss on selling hardware are lying to you hardcore. I've seen too much through the years to be that gullible. As far as what the electronics media says about it, let's be honest: electronics media is paid advertisement. Sort of like how Rockstar basically bought those "10" ratings for Grand Theft Auto IV, and the whole "Kane and Lynch" fiasco. It's an even bigger issue when going being the cosm of games and into hardware itself.
Electronics manufacturers have had a racket going on for decades, its also been fairly transparent for people taking a look at it. This is no differant than it ever has been. Claims that they sell these products at a loss are complete BS, any truth to the arguement is based totally on bureaucracy with the loss being comparitive to what else they could be using the material for.
Sort of like how nowadays companies work on "projected growth" and if they don't meet those goals then they have "failed", "lost money", or "ceased to be profitable", which is complete BS. You only make 2 billion dollars in pure profit when you think you should have made 10 billion in pure profit and that's an "OMG we've taken a huge bath" occurance.