Sony losing $260 on each PS3 sold?

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That console makers lose money on every console sold is no real secret and the only real exception to that rule is Nintendo and the Wii - for everyone else it's a case of selling large amounts of games to recoup losses though.

Sony though may be making larger losses on the PlayStation 3 than they are willing to admit though, if an analysis of the recently release financial results is to be believed.

The Guardian had a quick look at Sony's latest spreadsheets and revealed that although Sony's game division has managed to reduce yearly losses from $2 billion to $1.2 billion, the news may not actually be all that good.

While Sony's figures indicate a loss of $130 on each PlayStation 3, The Guardian thinks it may be twice that and the figures are actually buoyed by the success of the PlayStation 2.

"[The PS2 and PSP] could easily have made a profit of $1.2bn in the year. In that case, the total PS3 loss would have been $2.4bn shared between 9.24m PS3 consoles, or $260 per PS3 — including any attached Sony games."

Ouch! It makes you feel even worse for any PlayStation 3 units that are still sat on shelves!
bit-tech.net | Sony losing $260 on each PS3 sold?
 
I heard somewhere else that even MS is loosing a hefty amount on each XBOX sale. Why on the earth companies are still selling the units, if they are incurring so much loss.

JUST TO SATISFY THEIR MARKET SHARE EGOS !!!
 
ashthedivx said:
I heard somewhere else that even MS is loosing a hefty amount on each XBOX sale. Why on the earth companies are still selling the units, if they are incurring so much loss.

JUST TO SATISFY THEIR MARKET SHARE EGOS !!!
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Well, the XboX 360 has an attach rate of 7 games per console I think. So if they make 20$ off a 60$ title, that makes up their money doesn't it? And this is not counting all the money they make on XboX Live subscriptions and the XBLA. Now 250$ loss per console may not be sustainable, but a 50-100$ loss on a console may work overall. It's a business plan that has been proven to work. Look at how the Printer manufacturer companies make money.
 
whatsinaname said:
Well, the XboX 360 has an attach rate of 7 games per console I think. So if they make 20$ off a 60$ title, that makes up their money doesn't it? And this is not counting all the money they make on XboX Live subscriptions and the XBLA. Now 250$ loss per console may not be sustainable, but a 50-100$ loss on a console may work overall. It's a business plan that has been proven to work. Look at how the Printer manufacturer companies make money.
Click to expand...

Yeah, i do understand the same where one purchases a laser printer for 5K but has to shell out another 4.8K for getting the new cartridge :ohyeah:

I had a customer, asking for replacement for his 2 days old printer.. What i did, throwed a better model to him... Result - More torture at the time of cartridge replacement :tongue:
 
The loss incurred by microsoft is evened out due to the sale of accessories like the wifi adapter. Even in India instead of giving the customer the option of purchasing the xbox 360 core for 10K and premium for 19K, they have forcibly added the overpriced wifi adaptor (4k)in the bundle. So therein lies their profit. The die shrink will also save them money.

Sony is losing money because of the bluray drive. But do we as gamers/customers need to worry about companies selling consoles at a loss? If priced right we buy it else give it a thumbs down and move over...
 
Actually I thought that the PS3 had started to NOT make any losses from Jan 08 onwards. Not sure how true though, read it in the Wiki
 
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