Sony’s PlayStation 3 used to cost Sony over $800 to make, leading to a loss on each unit sold.
Video games is a razor (console) and blades (software) business so Sony was willing to take that loss on the initial launch, but recently Sony has said it s made significant strides in reducing the cost of PS3 so now they’re making about a $140 profit on each $400 unit they sell.
From TVG: {link no longer active}
The cost reduction since we introduced the PS3 is very substantial and this is on schedule, Oneda-san replied when asked about manufacturing costs. We don’t disclose how much of the PS3, specifically the cost deduction was achieved during the past two years. But that is on schedule.
About 70 percent, roughly speaking, Oneda-san added when pressed further on the matter.
Unfortunately for Sony, PS3 is still being outsold by the nearly-ten year old PlayStation 2, so isn’t it time for Sony to put that profit towards a price cut and move some additional units before it loses any footing it ever had in the industry
Yes, it’s that bad. Price cut by September, please.
