Analysts are reporting the PS3, each unit of which has famously sold at a substantial loss since its release, may be approaching the point at which Sony is actually making money on hardware sales.
Industry analysts report the cost of the PS3 Slim’s hardware components have now dropped to $336, though the units sell for $299.
At launch the console was estimated to cost Sony $805, selling for a maximum of $599, and by 2008 the $399 console was thought to be losing $50 per unit.
They explain:
“Since the introduction of the PlayStation 3 in late 2006, Sony has subsidized the price of every console sold, a deficit the company has made up for with game sales and royalties.
However, with each new revision of the game console hardware, Sony has aggressively designed out costs to reach the hardware and manufacturing breakeven point as quickly as possible.
The latest version of the PlayStation 3 manages to further reduce the loss, even with the U.S. price of the console having fallen by $100 during the past year.”
They even hold out the possibility of Sony actually making money on the console with continuing reductions in component cost:
“In light of these factors, the PlayStation 3 probably is already at or near the tipping point for profitability,”
Marketing and distribution costs, as well as the razor thin profit margins enjoyed on base units, are not included in these calculations, although selling hardware at a loss to recoup profits on media sales is far from poor business sense.
In comparison, the rather more basic hardware of the Wii has supposedly been selling at a profit throughout its history, whilst the Xbox 360 has apparently been sold at close to break-even, apparently at the expense of reliability…
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Microsoft don't need to breakeven. They got Bill Gates.
Microsoft don't need to breakeven. They got Bill Gates. (Just because he retired, doesn't mean he still owns part, or lot, of it)
That being said, I do wonder to myself, how much money did they made from purely console sale on older gen consoles?
You realize that Bill Gates already retired from Microsoft. Steve Ballmer is the monkey, er, man in charge now.
Sony has been bleeding cash for a long time from the PS3. I'm glad to see it is at least closer to becoming a cash cow rather than a cash dustbin.
That being said, how many people use the PS3 as just a Blu-ray player? I'm sure there are some out there. I guess my collection of PS3 games makes up for them. :)
you have a third of the xboxs library congratulations
I wonder how XboX is doing then, they actually PAY royalties to people developing games on it instead of receiving them...
how do u connect ps3 to internet and play online?
check ur network settings
rtfm
I think there is a good number who buys PS3 to play blu-ray. Some people I know just got a PS3 because it can do everything
Given the consistently poor attach rate, I would assume a lot of people are using it solely as a BD player, because the game sales have been pretty... average. But don't worry, that's just because PS3 owners have more diverse tastes.
Well, some people get it because of the blu-ray when choosing between it and an xbox360, but the majority pick the xbox360 ONLY because it's so fucking easy to pirate games on.
Really have to face the truth no matter which camp you're in.
As far as wii's, no idea. Not 2-9yo nor am I 60-90, the apparent age range they can get people to actually want one.
Are you crazy?! using the PS3 just for blu ray?! I also use it to watch divx videos and such.
Some people get it for just bluray because of the fact it always gets firmware updates quickly. If they buy a offbrand standalone player they may never get the updates.
From what I've heard, Nintendo has always sold it's hardware for a profit from day one, due to them using substantially less than cutting edge technology at launch.
Outselling Sony and Microsoft substantially from day one, and now I find out that they're the only one who was selling at a profit, too?
Whether you love Nintendo or hate them, their business practices are pretty awe-inspiring.
like getting sued for copyright infringement? [http://en.wikipedia.org/wiki/Universal_City_Studios,_Inc._v._Nintendo_Co.,_Ltd.]
Nintendo makes everyone see green.
Their ceo's with cash, microsoft and sony with profits, and gamers who got suckered into buying a wii and want better quality games.
not true sony and microsoft have made way more money on the game sells alone. only a very small handful of games are purchased for wii
15:26 - Do you just make up your own reality and live in it, or something?
http://en.wikipedia.org/wiki/List_of_best-selling_video_games#Wii
wii is a nintendo console and for use with nintendo games only. all other games on wii sucked.
even the games made for the wii by nintendo suck
wii play,wii sports-a collection of games that have been done before just repackaged with miis
wii fit- not a game but a program that tells you your fat tub of lard while your exercising
its really sad nintendo found a new way to be unimaginative and stale yet get rich doing it
lol. whether or not you're xbox or ps3 fan-boy. you probably have a wii hidden under your bed.
@null Do you just make up your own reality and live in it, or something?
I notice you didn't include a link in your post 04:54.
By the way, I didn't just mean the Wii when I said that, I meant every console and handheld they ever created. The NES/Famicom was vastly underpowered compared to the current computers of the time. But Nintendo was aiming for it to be just good enough to create solid games for while being just cheap enough for most people to afford, and they succeeded.
NES underpowered? It was based on the 6502, the same chip as its 1980s contemporaries like the Atari 2600 and Apple II.
Well I guess it was about time huh?
I wonder exactly how much they've lost since it launched though, or if it had any real affect?
Finally the PS3 is starting to make some cash. They deserve it too. The PS3 isn't for the feint of heart, and it's definitely for the hardcore players. You don't hear about people being reported or getting banned. And there's a ton of cheaters too. Have you seen the MW2 leaderboards? Jesus Christ. But no one ever cares. We play to kill, talk shit, and then that's it. If you don't like someone you put them on the naughty list and you never hear from them again. On the 360, you report they guy, rate the guy, then ignore the guy. What the fuck man? PS3: Fuck you buddy. And then ignore them. I mean come on. The 360 even has those gamer things with the Pro, the Underground, etc. Not even sure what those were for.
TL;DR version: PS3 is for us douchebags that make fun of your mom, then your gaming skills. And then if there's time, your voice for sounding like a kid.
yea basically PS3 players are more matured then the gamers u get to know on xbox live
Nope, both have stupid players, but on the ps3 less players have acces to mic, on Xbox almost everyone has one. Online gaming is always full of douches, no matter what.
It's class of AI match ups for online versus.
Supposedly if you say underground (hardcore) whatever when seachinng for a partty or a game it first searches for other underground players and then works down the list.
Later I heard they abandoned that AI system and just use it as a way for noobs to know if the person they ar challenging is basically capable of handing their ass to them.
You know it's the PS3 if it comes with a
"Blue Ray", lol, sounds like some kind of
a massively destructive laser, and for 66.00,
it's a steal!
Your thinking of "Death Ray".
But yeah overall the PS3 Slim is an amazing value.
I'll get one soon and the hell with xbox... well not really but still... I'll finally get to play uncharted, metal gear and other ps3 exclusives.
Ya, can't wait to get my ps3 too, mainly for metal gear(a bit late, ya...) and a couple of other games
in that case 1 piece of advice don't play MGO its totally unfriendly to MGS newbs
i thought same thing but youll soon grow on it. it a shooter with huge strategy elements. if you're taking someone out one way. you gotta think hard to find another. for example, personally i suck horribly with aiming so instead of looking for headshots i stick to knives, traps and sometimes sniper rifles.
Actually, I played the rest of the MGS series, I don't think I'll mind
hopefully they can get on track now.
So that means they're losing even more money on the 250 Gb version that sells for only $50(CDN) more, LOL.
They will actually be losing less. The 250gb hard drive alone, not the difference between the 120gb and 250gb, will not cost Sony $50.
Actually, that cost less then $50. So i assume that they at least break even with that version.
Actually, they get closer to even with the 250gb model - the extra expense of 250gb is less than the $50 increase in price.
Nintendo has been Making money of the Wii for years. Sony needs to get with the Times.. Nintendo and Microsoft is beating that ass.
Sony is doing just fine. Nintendo might be making money with each console but because there gamers are casuals and there game library small they don't sell that much games. Sony gets a lot more money from game sales.
Also if we take in to account the people who bought X-Box because they can play pirate games(not to mention those who bought second and third after it broke) then you will realize that Microsoft actual sales are a lot less(No profit from a guy who bought a console but never bought any original games).
Also Sony risked selling on loss to win the HD disc war. And now that she made it, Sony will get even more profits.
yes, nintendo don't sell many games.
[http://en.wikipedia.org/wiki/List_of_best-selling_video_games#Top_20_console_games_of_all_time]
not only that. look at the new exclusives for the ps3. the only thing i hear that xbox has is natal. sony may be losing cash but i bet theyre smiling at the future to come. also sony has been in the gaming biz longer that microsoft. and within that time they destroyed thier competitors. theyll find a way to overcome. ps3 aint quittin yet. oh yea. nintendo kicks ass.
When you have only ten games worth buying off course they are gonna make big sales especially when so many have the console, but i wonder how much sales to they get from all the other games?
I know what am talking about. I bought the Wii because i thought the idea looked cool like every other idiot around and i bought a few of those games but after 2 months i couldn't find any other decent game and i got tired of jumping around and i preferred sitting with my conventional controller. So the Wii ended eating dust in the closet until i got ridden of it. And you will be surprised how many can share a similar story.
Yah but those are from third parties, so in the end its all more money for nintendo, you can criticize them all you want, but in the end nintendo is making a wonderful profit from both, consoles and games.
Hey am glad they can make profit. I don't want them to disappear. I love Nintendo. I still have my Nes with the big Mario Bros tape.
It's also good for the competition. But the Wii for me is a product that deceives it's buyers.
The whole controller thing seems nice but you get bored of it very easily except if you are a 10 year old that loves jumping up and down all day and there are no good games to buy except from very few exceptions.
What you posted is complete nonsense.
I suggest you take a look at some of these companies' financial reports. It shows Sony's game division losing over 4 billion dollars in the past 3 years, while Nintendo has made over 12 billion (can't remember exactly).
The PS3 is selling the least amount of software out of the three consoles. That's a fact, no anecdotal evidence will change it.
Blue-Ray Drive... the most innovative thing since the Blu-Ray Drive...