Thread: Analysts criticize Sony Japanese PS3 price drop
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Old October 9th 06, 09:46 AM posted to alt.games.video.xbox,alt.games.video.sony-playstation2,rec.games.video.sony,uk.games.video.playstation,alt.comp.periphs.videocards.nvidia
Chris F
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Default Analysts criticize Sony Japanese PS3 price drop
On 23 Sep 2006 10:35:37 -0700, wrote:


Tom wrote:
Tom wrote:
Nope. The bottom line is Sony needs to sell TONS of consoles, I mean
tens of millions, to start coming close to even breaking even.

Actually what I meant by this is they need to sell millions of consoles
over many years, to start breaking even as manufacturing costs and
component costs start to go down and they start realizing economies of
scale.

It's true that today at the current cost of manufacturing the ps3,
selling more consoles means more total losses but as they sell more
consoles the loss per unit decreases some.

The base components Sony buys is going to have to hit large enough
scale also to drive the cost down. BUT, the profits in the videogame
business is NOT from the consoles sold, it is from the games on the
system.

someone better tell nintendo that, they've been doing it wrong for
years!
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