Weak Yen Could Help Sony's PS3 Succeed.

The all-time weakness of the yen against the euro and pound could "save" the delicate economics of the PlayStation3 games console, and rescue Sony from an estimated four years of losses on its complex machine.

New calculations by UBS suggest that if the historic strengths of sterling and the euro against the yen continue into 2007, Sony will make only a tiny loss on each console when the PS3 is launched in Europe next March.

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MicroGamer4366d ago

that importers are beating them to market in Europe with Japanese and American PS3's. By the time they get there in February, there may not be a market left.

MicroGamer4366d ago

they have their numbers wrong. If they sell the PS3 in Europe for 570 Euros ($757) what they aren't taking into considering is that many countries in Europe have something called V.A.T. (value added tax) which is figured into the sale price of everything you buy, so just because retailers are collecting 570 Euros on each one sold, Sony isn't getting 570 Euros. The retailer takes their cut and the government takes theirs as well. Sony probably will get less money from each European unit sold than they get from USA and Japan sales and because the prices are higher in Europe, they will sell less of them.

EnforcerOfTheTruth4366d ago

Almoust nobody buys imported consoles, that's very unusal. Nobody wants to have problems if it breaks, cause for warranty you must send it to the country where you have it from.
In Europe it will be sold for 499€ and 599€, so even with the tax you can be sure if yen stays low they will make only marginal loss.

DEIx15x84366d ago

Does this have anything to do with how well the yen is compared to the euro? It seems like it is more about the fact that Sony is over pricing the PS3 in Europe. If the console's sale price is higher of course they will make more money off of it no matter what the conversion rate is. This doesn't make sense though, didn't Sony drop the price in Japan citing a change in the conversion rate as the reason and that they were only making the prices even across all the territories? How could Europe be so expensive if they are "even"?

MicroGamer4366d ago

that tax alone adds a lot of money to the prices of everything you buy there. I have been on shopping trips in England and it's amazing how little you get for your money. Every time I asked a shopkeeper about the differences in prices between the UK and USA, the answer was always V.A.T.

kikilala4365d ago

i guess u must be better than all of those accountants at ubs huh? oh the accountants forgot to calculate the v.a.t in the calculation...

i call bull on that.. what do u think those guys are?? idiot?? they are professional.. n they even know more about the financing and money market than u do...

the more info come out the more i think the delay and shortages is done deliberately by sony... to reduce the loss by up to 90%.. its an opportunity that is too good to not to be taken... i guess we'll have to wait n see what will happen on March...