Gamespot: Sony losing hundreds on each PS3 while Microsoft is making money

iSuppli breakdown pegs cost of manufacturing $499 20GB console at $805, $599 60GB console at $840. Thanks to streamlined processes and ample component supplies, iSuppli estimates that Microsoft now makes $75.70 per Xbox 360 console.

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EasilyTheBest4447d ago

Thats just one hell of a lot of money for Sony to be losing on each console, hey their in the red now i hear. What if microsoft buys up all the ps3s and just sticks them in an empty warehouse. Sony would lose millions as they wont make the cash back on any games sold. In the future when the Ps3 are worth loads for being so rare n hard to find microsoft could sell them on ebay....

Marriot VP4446d ago

haha interesting idea, never thought of that. However more consoles sold would trick developers into believing sony's console base is bigger than actual, so more exclusives and ports. So it wouldn't really work.

shotty4447d ago

I have a feeling microsoft is going to outspend sony into the red. Sony is already losing tons of money per a console sold, add into that advertising, shipping and other expenses and it's going to get costly.

The ps3 not shipping with component cables is showing that sony is trying to shorten the loss as much as possible but in the end every ps3 sold makes the wound that much worse.

DJ4447d ago

Sony put a crapload of new technology in their system, things that Microsoft didn't even attempt. Hopefully it'll pay off. Microsoft was losing $200 on each console during their launch, but their console was only $400. Consumers have to absorb some of the new technology like Bluetooth, HDMI, Gigabit ethernet, and Blu-ray. I was pretty surprised that Blu-ray only costs $110 to manufacture. Ok yeah, it's a lot for a disc drive, but considering the system itself costs $850 it's not all that significant. Even if they shoved in a DVD drive the systems would cost $780. Not all that big a difference.

Production costs will decrease from day 1, but how fast they decrease is uncertain. It's good to see that Microsoft's making a profit off their hardware now. Maybe their 5 billion dollars of debt will finally get paid off.

emandm4446d ago

About two years ago Microsoft was valued at 87 billion, six months ago Steve Balmer (the no 2 at microsoft) had a personal fortune estimated to be in the region of 16 Billion. How do you work out they have 5 billion debt from the 360, and if a blueray drive only costs Sony $110 why do they sell the players for $1000 dollars sounds like another Sony ripoff then, if your facts are right. Well i suppose Microsoft will "prop" themselve's up by selling Vista, Sony can always rely on selling pink playstation 2's to little kid's oh how they milked that one.

DJ4446d ago

Not Microsoft Corporation. If you really want to know why Blu-ray drives are $120 (i was wrong when i said 110, found new data) is because that's all it is. A disc drive. It takes a LOT of processing power to do 1080p video decoding/output, and when you buy an HD-DVD or Blu-ray player you're paying mostly for the PC components inside like CPU, RAM, motherboard, etc. There's also start-up costs for manufacturing and design.

HD-DVD and Blu-ray players cost roughly the same amount of money to manufacture. The early Toshiba HD-DVD players were sold at $500, which is hundreds below their manufacturing fees. It was sort of a desperate, but intelligent move in order to get some early market penetration.

sparco4446d ago (Edited 4446d ago )

And that word is pr!ck.

Every problem that Sony is having, you have to make a story up that Microsoft/Xbox division is having exactly the same problem. Your always talking boll0x. The story is saying that Sony are losing hundreds for every console sold, so you have to get straight in there and say "If only 360s were selling faster". Fu**in ell d!ck head. They're selling fine! I dont see too many PS3s selling at the moment. And i wonder why. COuldnt be anything to do with blueray could it? And all that "technology" in the "P$3"?

ya know what, just f*k off. Cnt be fu**ed to say anythin else.

4447d ago Replies(2)
BlackCountryBob4446d ago

Thats a lot of money to be losing, especially when they are banking on making back profits through game sales where they have shifted less than 1 per console sold! Its a good thing that Sony are such a big company to take this hit in the short term as there are very few others who could!

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