PS3 Loss Down to Just Eighteen Bucks

[Logan Westbrook]

PS3 Loss Down to Just Eighteen Bucks

Sony is very close to breaking even with PS3 manufacturing costs, with the loss now down to less than twenty dollars.

The bad news for Sony is that the company is still losing money on every PlayStation 3, they good news, however, is that that amount is getting smaller all the time. In December, the loss on each unit was $37, but now, just a few months later, it's down to just $18, less than half of the December total. Considering the loss at launch was rumored to be in the hundreds of dollars, that's a very impressive reduction indeed.

The aggressive cost-cutting that Sony instituted after suffering huge losses during the economic downturn seems to be paying off as the company posted an operation profit for the quarter of 146.1 billion yen ($1.6 billion)

"We think we've bottomed out and we can do fairly well going forward," Sony Chief Financial Officer Nobuyuki Oneda told the Wall Street Journal [http://online.wsj.com/article/SB10001424052748704259304575044393323649812.html?mod=WSJ_Tech_LEFTTopNews]. Sales of the PS3 are up, at 33.5 million units, and are closing the gap with the Xbox 360. Sony is now estimating it will turn a profit on the PS3 by 2011.

Source: VG247 [http://www.vg247.com/2010/02/06/loss-per-ps3-cut-to-18-says-wsj/]



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[Amnestic]

Well that's decent I suppose. Halving your loss on sales in less than three months is pretty impressive.

Just have to hope people keep buying PS3s in the future.

 

[TheRightToArmBears]

Yay! Things are getting close between Sony and Microsoft, and good competition leads to good progress (most of the time. Actually, it's just going to be more bitching).

 

[tkioz]

I don't really see how it helps, I purchased my 360 a year ago because it was far far cheaper then a PS3, and other then a tiny amount of games that look interesting that are only out on the PS3 I have no incentive to spend more money on another console, I think a lot of people would feel similarly.

Don't call me a fanboy, if the PS3 had been cheaper and had the games I wanted when I made my purchase I'd of likely got that, but it was much more expensive, and now that it's down in price, I've already got my 360, got a ton of games, and everything I want is coming out on the 360 as well, so why would I buy another console?

 

[Cherry Cola]

I raise my glass to you, Sony.

*raises glass filled with soda*

*drinks soda*

Mmm, that's good soda.

 

[sephiroth1991]

I guess they can make that back on sales of games

 

[siffty]

kool grats to sony for the epic comeback

 

[Korten12]

well this is good.

 

[Crazy_Bird]

Excuse me but to what does the 18 $ refer? The total production and development costs minus the revenues from sales? per piece?

I can read between the lines that it is good news; i got that but I do not get what "a loss of 18$" is supposed to be.

 

[MurderousToaster]

Excuse me but to what does the 18 $ refer? The total production and development costs minus the revenues from sales? per piece?

I can read between the lines that it is good news; i got that but I do not get what "a loss of 18$" is supposed to be.

They are selling it for 18 dollars less than it costs to make it.

 

[AvsJoe]

Congratulations to Sorny! Maybe I will throw a party for them with chips and dip and one of those salsa platters.

On second thought, maybe not.

 

[Crazy_Bird]

Ok, thanks then it is referring to the contribution margin.

Yet they must use some pretty awkward calculation for their financial success calculation.
Probably they use the contribution of the already sold PS3s to reduce the operating cost of the single PS3 which will be sold there after.

 

[e2density]

Oooh...2011.
Hell I'd buy a PS3 if I wasn't so ridiculously bad with joystick aim.

 

[Rainboq]

Gratz too sony, they need too make up for the poor start

 

[outcast_within]

All they need is to make people pay for psn and they are golden

 

[Therumancer]

All they need is to make people pay for psn and they are golden

If they made people pay for PSN I think one of their major selling points would die.

Truthfully, I think their current success has come at the cost of nessicary features like backwards compadibility. Sure, they reduced the cost of the units, but also made them far less worth having.

 

[cobra_ky]

Well that's decent I suppose. Halving your loss on sales in less than three months is pretty impressive.

Just have to hope people keep buying PS3s in the future.

You know what's more impressive? Selling a product that's profitable to begin with.

 

[Amnestic]

Well that's decent I suppose. Halving your loss on sales in less than three months is pretty impressive.

Just have to hope people keep buying PS3s in the future.

You know what's more impressive? Selling a product that's profitable to begin with.

Yes, because the Wii is truly an impressive gaming console.

That was sarcasm. I don't think the Wii is impressive.

 

[DrScoobs]

Things are getting close between Sony and Microsoft, and good competition leads to good progress (most of the time. Actually, it's just going to be more bitching).

w0t R U tlaking abo0t. 0nly fags buy teh GAYstation 3! LOLOLOLOL! buy a xbox 360! tis teh L33T!!!111

seriously, the closer that the ps3 and 360 get to each other, the more heated the console wars are gonna be. i look forward to seeing the threads on gamespot.

 

[Jumplion]

Well that's decent I suppose. Halving your loss on sales in less than three months is pretty impressive.

Just have to hope people keep buying PS3s in the future.

You know what's more impressive? Selling a product that's profitable to begin with.

I think that rarely happens in the electronics industry actually, few components like TVs and whatnot sell at a gain nowadays. Isn't the 360 still selling at somewhat of a loss, or has it jumped over that now?