The Sony PS3 costs $840.35 just to manufacture

S

Soup90

New member
http://arstechnica.com/news.ars/post/20061116-8239.html

ibrepost

I saw a thread in Teh New Hotness but not the main forum and I'm sure not a lot of you visit Teh New Hotness
 
i call bullshit on that...

i could built a pretty bomb computer with dealer markup for that much... if they're mass producing and making the shit themselves i cannot conceive how it would cost that much for materials + electricity on the robots
 
It's true. The number might be a lil off but a PS3 does not cost less than what it sells for. Neither does a 360. Not at launch. Consoles traditionally sell at a loss until they become cheaper to manufacture. PS2 when released took about a $150-200 loss on every single one for bout a year and a half, then a smaller loss with redesign. The PSwo slim line is profitable outthe box. But they make the money back on software and accessories. It is like a Razor and blades...they'll almost give you the razor for free but you gotta buy blades.

MS and the Xbox division is another story...they have yet to make an actual profit believe it or not..they have lost like half a billion dollars so far since 2001. But it's their way of entering the market. They have the cash to sit out a few generations until they control it all.

NIntendo and the Wii this gen is a whole other story though with it being profitable out the box...courtesy of old console tech prices but an innovative new controller.
 
Xbox consoles were selling at a loss, but I did read that the 360 w/ a HDD now costs ~330 to build.
Whats funny about the PS3 is the optical drive costs almost 50% more then the CPU (~$130 vs 89)
 
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