Losing money?

[codeking]

I've been reading how the ps3 (and xbox 306) have been losing money. the store sell them $600 but they cost $??? to make. how does this work though? the STORES are selling them for $600, but sony is selling them to the stores for much less. And ALL of the blogs that say they're losing this much money, but they're losing much more. How could all the blogs be wrong? Either im a genius or there's something i dont understand. (i think its the latter)

 

[Kryptenx]

...Yes, Sony takes an almost $200 hit for each PS3 sold. Why? Consumers aren't going to pay $800+ for a console(besides ebay) and they will make the loss up off game sales and licensing.

 

[codeking]

already no that. why are they counting the retail price though? it should be the wholesale price.

 

[Kryptenx]

already no that. why are they counting the retail price though? it should be the wholesale price.

If you already know that, then what the hell are you asking? Do you not understand simple economics?

 

[maclawa]

Companies make all their cash off the games/accessories

 

[fanaticalmoose]

MS was losing money on the 360 but now they are making money on each console sold...

basic economics is the more you sell, the less the production cost will be of the system... so if sony sells enough then they will be able to make some profit from the ps3...

 

[Prelude]

Stores make 3 to 4% on each PS3 and they make 27% on each Wii. That is how bad Sony is willing to sell them for to get them on the market so they can start going positive. Hell its their own faults, they went with the blue ray system. They coulda just stuck with a regular drive and managed to put out a milllion easy by christmas! ANd it would have cost much much less! like 400 easy!! But they wanted to push their blue ray set up, only time will tell on the economic market.

 

[northskateboards]

i think its all BS i dont think theyre losing any money at all. It doesnt cost a company that much to make a console its coming up with the idea that is tough once they know what they need its cheap. Think about whats cheaper building a computer or buying one. Building one is way cheaper because the stuff that you build a computer with isnt expensive at all.

 

[Wii-bert]

Nintendo actually MAKES money off the Wii. It costs Nintendo $158 to make a Wii and they sell it for $250. Nintendo = smart, Sony = dumb

 

[Yuu]

yep sony really f*cked up with blu-ray. they really want blu-ray to win over HD-DVD, so they forced it into the ps3. now it looks like the ps3 is going down the **** hole.

everywhere you read nowadays, people are wanting to wii or the xbox360 over the ps3. they're also saying the xbox360 is going to drop another $100 in price, so the ps3 isn't looking too good at the moment.