25 replies to this topic

[maplevalleymaster]

I am currently in Ireland for a week, and there is so much hype even here. There was even a show on it last night on the BBC.

[Snoqualmie guy]

Sony is losing big money on it. I wonder if they will stop production?

[SkiBachelor]

A lot of companies loose money selling their main product and make it back from selling tie in products. Even though Sony is loosing about $300 or more per console, it's making its loss back from selling PS3 video games and game console accessories. This is also why Sony makes its game consoles backward compatible (able to play PS1 and PS2 games) so that it can generate revenue from older titles.

Here are some other products that are sold at a loss:
Printers - For $269 you can get a really nice printer with a built in scanner, fax machine and memory card reader. While the actual manufacturing price of the printer is $400 or more, manufacturers make their money back by selling you over priced ink cartridges for $35 when they cost less than $4.
Razors - While you might think $10 for a shaver is a good deal, Gellet makes its money back by selling you razor blade refills for $5 when they cost 5 cents to make.

[poloxskier]

But the problem with the PS3 is not that they would make money back from games but that they are not selling the predicted numbers of consoles to sell games for. Where as the Wii has been sold out for months most places and continues to sell strong the PS3 is available on shelves everywhere. The Wii is also the only system that any manufacturer is actualy making a profit off of.

[SkiBachelor]

I would buy a PS3, but they're still too expensive for me. I think the system's price will drop within the next few years as technology improves and economies of scale kick in.

The PS2 is currently outselling the PS3 right now and Sony makes $8 on each unit sold.

[poloxskier]

SkiBachelor, on May 22 2007, 08:35 PM, said:

I would buy a PS3, but they're still too expensive for me. I think the system's price will drop within the next few years as technology improves and economies of scale kick in.

The PS2 is currently outselling the PS3 right now and Sony makes $8 on each unit sold.

I didnt know that the PS2 was sold at a profit. Of the new systems the Wii is the only one that is being sold at a profit if small, only $37 per console. But with a million already sold by January I would have to think that the wii will end up being the greatest success. I too will hope to get a PS3 when the prices drop but for now I really liked my Wii that I picked up at the launch, well two, one of which I ebayed to afford mine.

This post has been edited by poloxskier: 22 May 2007 - 08:50 PM