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Sony losing mad loot on each PS3

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Old Nov 16, 2006 | 01:11 PM
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Default Sony losing mad loot on each PS3

We all knew Sony was dropping a fair bit of cash on each PS3 sold, but we suppose we got a bit too hung up on the resultant pricetags -- the notorious $499 and $599 SKUs -- to give the actual losses much of a thought. Well, worry not Sony, iSuppli's got your back. Turns out Sony will be losing change to the tune of $241.35 for every "premium" (WiFi and 60GB HDD) console, and a whoppin' $306.85 for the bargain-basement 20 gigger. In comparison, Microsoft loses $75.70 per 360 it sells, while Nintendo is laughing all the way to the bank with a profit per Wii sold. Just in case you missed it the first time around, or fell off your chair and forgot what you were reading about: Sony will lose the equivalent (or more) to the retail price of a competing console every time a cash register rings up a PS3 sale this holiday. We suppose it's for the best, then, that Sony won't have a whole lot of 'em to hand out, since we're sure Sony's own costs will start to drop as production really ramps up next year.
:eek3:
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Old Nov 16, 2006 | 01:12 PM
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repost

edit: kind of.. i think.. h:
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Old Nov 16, 2006 | 01:17 PM
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Why would they sell a product to lose money?
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Old Nov 16, 2006 | 01:26 PM
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Originally Posted by F22B Prelude
Why would they sell a product to lose money?
Market penetration. They're basically "investing" 250-300 per customer so that down the road, they'll make more money back. They did it with the PS1/PS2, and they ended up being some of the best selling consoles of all time
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Old Nov 16, 2006 | 01:30 PM
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but the main reason they are loosing so much money is because of the blu-ray feature... they want to get a head start in that market too ..... they will deffently make there money back
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Old Nov 16, 2006 | 01:30 PM
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this is nothing new. pretty much every console is a money loser. they hope to make up the cost on game sales.

Originally Posted by Epoch
and they ended up being some of the best selling consoles of all time
all time = something like 30 years. # of consoles = a dozen? two dozen? :chuckles:

Last edited by reno96teg; Nov 16, 2006 at 01:33 PM.
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Old Nov 16, 2006 | 01:33 PM
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Originally Posted by F22B Prelude
Why would they sell a product to lose money?
Because they'll make an assload on peripherals (games, licensing, etc). It's kind of like GM. They lose money on most cars they sell but make all that money back (and then some) by financing.
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Old Nov 16, 2006 | 01:36 PM
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Originally Posted by RB
Because they'll make an assload on peripherals (games, licensing, etc). It's kind of like GM. They lose money on most cars they sell but make all that money back (and then some) by financing.
How will they make money back when the market already has the 360 and the Wii will be coming out as well....and plus isn't Sony only selllin a few compared to the ratio of 360's and Wii's
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Old Nov 16, 2006 | 01:39 PM
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when the PS2 came out, there was the gamecube and the xbox, and just before that the dreamcast.

when the PS1 came out, there was the super NES, the genesis, the saturn, soon after the n64.

basically they're taking a chance that their investment will pay off. remember that they have millions of potential customers and loyal fans AND many people will get more than just the one console.
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Old Nov 16, 2006 | 02:05 PM
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if each owner of PS3 is stupid enough to buy everything on Gran Turismo HD, they'll make they're money back.

"According to a Famitsu interview with Kazunori Yamauchi, Gran Turismo HD will make use of microtransactions [5]. The base game will be sold at a very cheap price, only the cost of the disc and the box, and will feature a limited amount of cars and tracks, namely around 30 cars and 2 tracks for the Premium mode while Classic mode default content is yet to be confirmed. Downloadable content from the Playstation Store includes additional cars which will cost 50-100 yen (43-85¢ approx) each, and additional tracks which will cost 200-500 yen ($1.70-$4.20 approx) each. The game will have 750 cars and 50 tracks available between online and offline modes. This adds up to about 47500 to 100000 yen ($410 to $850) if everything is bought."
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