iSuppli: Sony close to breaking even with PS3 Slim

Posted Dec 12, 2009 at 8:00PM by Glenn M. Listed in: PS3 Tags: iSuppli, Sony
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ps3slim_b

 

The launch of the new line of PlayStation 3 units has been well-received and well-sold, but apparently, Sony is still losing money for every PS3 they sell. This is the report coming from applied market intel, iSuppli. On a more positive note, they are closer to breaking even now than ever before.

 

“Since the introduction of the PlayStation 3 in late 2006, Sony has subsidized the price of every console sold, a deficit the company has made up for with game sales and royalties,” said iSuppli teardown services director and principal analyst, Andrew Rassweiler.

 

He goes on:

 

“However, with each new revision of the game console hardware, Sony has aggressively designed out costs to reach the hardware and manufacturing breakeven point as quickly as possible. The latest version of the PlayStation 3 manages to further reduce the loss, even with the U.S. price of the console having fallen by $100 during the past year.”

 

isuppli

 

As of December 2009, the total manufacturing cost of a 120GB PS3 Slim is US$ 336.27 - and with the US$ 299 price point, Sony still loses US$ 37 per unit sold. Fortunately, prices for the console's parts are expected to "decline significantly in 2010." “In light of these factors, the PlayStation 3 probably is already at or near the tipping point for profitability,” Rassweiler said.

 

 

Image courtesy of iSuppli.com


[via iSuppli]

 


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Best prices available for:
Price Range:
$37.00 - $91.00
at 16 Stores

Price Range:
$1.00 - $47.00
at 12 Stores

Comments 


 
# keep on keepin ontruk 2009-12-12 15:21
good game sony, good game

Reply
 

 
# Keep it upDarkXCloud 2009-12-12 16:31
Hopefully it all goes down well once the parts decline.

Reply
 

 
# yikeshush404 2009-12-12 16:47
The blue ray drive is still that expensive. Also, $37 lost per console is nothing! Sell a controller, or a couple games and bam, you made that money back.

Look at the HD, 120gb at $38... yet Microsoft is getting away with charging $150 for a 120gb drive? That's nuts.

Reply
 

 
# blkthunda 2009-12-12 17:53
Quoting hush404:
The blue ray drive is still that expensive. Also, $37 lost per console is nothing! Sell a controller, or a couple games and bam, you made that money back.

Look at the HD, 120gb at $38... yet Microsoft is getting away with charging $150 for a 120gb drive? That's nuts.

It's about 112 dollar for the enclosure that MS uses.

Reply
 

 
# protipOrlyeh 2009-12-12 18:06
"Sony" does not sell each and every console for $299. The retailers do.

Reply
 

 
# This is falsejac_the_ripper 2009-12-12 18:19
Sony confirmed that the manufacturing cost of the PS3 went down to 70% compared to their original model, which costed $800, so it should be $240, NOT $336, so sony is making $60 profit for every PS3 they sell. http://www.engadget.com/2009/07/31/ps3-manufacturing-costs-down-70-percent-strange-it-doesnt-fee/

Reply
 

 
# ...Shatterdome 2009-12-12 18:29
Even $38 for the 120gb still seems too high, especially from a wholesaler/manufacturer.

I just bout a 1 TB external USB for $99....

Reply
 

 
# welldavidg 2009-12-12 19:15
Quoting Orlyeh:
"Sony" does not sell each and every console for $299. The retailers do.


No, retailers are not making more than 3% profits on a ps3.. sadly for them (But they do tons of money selling the warranty for it, and the controllers, cables, TVs (lol), home cinema, etc. Games do not make good profits for them, but still for the number it can play. And used games make them rich, lol. A retailer pay it's ps3s at least 290$.

Reply
 

 
# @blkthundazzk2001 2009-12-12 19:37
I think your a little confused my friend =P this is PS3 not 360 lol
The PS3 HDD is just a laptop HDD (no casing or anything)

Unlike with 360 where it's a laptop HDD with a hard casing.

Reply
 

 
# ..phoenix1414 2009-12-12 21:01
god damn when will people (even the chart says it) get it right. ITS BLU RAY. not blue.

Reply
 

 
# Well...DarkXCloud 2009-12-12 23:41
If you think about it, they are still making profit off other products and stuff for the PS3.

Reply
 

 
# astaroth001 2009-12-13 00:49
Quoting jac_the_ripper:
Sony confirmed that the manufacturing cost of the PS3 went down to 70% compared to their original model, which costed $800, so it should be $240, NOT $336, so sony is making $60 profit for every PS3 they sell. http://www.engadget.com/2009/07/31/ps3-manufacturing-costs-down-70-percent-strange-it-doesnt-fee/

I remember they said it was 80% or maybe 70 but it was Sony who said it not some "intel" dood or gal

Reply
 

 
# yes but...StingBlah 2009-12-13 06:12
Sony has to pay to MAKE the controller. For the game, most of the money goes to the retailer, the manufacturer, the publisher/studio, and FINALLY to Sony.

PLUS there's taxes involved.

Reply
 

 
# it doesn't matter what this or that site saidhouaruto 2009-12-13 06:31
the facts are in the numbers and it has been dissected to lay all the cards out on the table. 70% here 80% there doesn't mean jack but an estimate and estimates do not stand for the holy truth.

there is no reason to doubt the above article unless you have any hard evidence or actually worked in the Sony plants who single handedly put together a PS3 for sale worldwide.

Reply
 

 
# ....Silver-Tiger 2009-12-13 06:48
I think the GigaBytes aren't te problem here. It's the mechanical parts that are expensive. adding a few hundred GigaByte won't increase the price anymore since the amount of metal you need won't increase anymore.

Reply
 

 
# jac_the_ripper 2009-12-13 09:40
Quoting houaruto:
the facts are in the numbers and it has been dissected to lay all the cards out on the table. 70% here 80% there doesn't mean jack but an estimate and estimates do not stand for the holy truth.

there is no reason to doubt the above article unless you have any hard evidence or actually worked in the Sony plants who single handedly put together a PS3 for sale worldwide.


Sony executive an chief financial officer confirmed it. I believe you are over looking on the percentage rather than the actual cost. "According to the report, PS3 manufacturing costs now as low as $240 (£146) per unit, potentially paving the way for a price cut." and many people know that this is article is a false, but I'm not relying on them. But you should know this, this is coming from a third party company, they don't ask Sony how much each part costs, they just make an "estimate".

Reply
 

 
# shipping?rollypoly 2009-12-13 15:40
i guess "other" includes packaging, included accessories, and shipping?

it's good to see sony getting closer to break even, but we will never truly know all the costs involved...

Reply
 

 
# it would be funnyMister Common Sense 2009-12-14 10:19
to see a wii cost break down.

I bet the whole system costs less than $70 to make.

Reply
 

 
# DSpider 2009-12-14 10:42
It's true. Us mere mortals won't know their true costs. They most definitely buy the parts in bulk. So remember, kids. China. Automatization.

Reply
 

 
# ...Glenn M. 2010-01-03 15:16
would like to get specifics on "other components" and why they cost more than the blu-ray drive put together

Reply
 

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