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News CommentaryKutaragi refutes $1 billion PlayStation 3 hole will bring SCE to its knees
Topic started: 19 Dec 2005 @ 13:31
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Mon, Dec 19, 05 @ 13:31
SPOnG wrote:
Sony Computer entertainment
Capital E.
SPOnG wrote:
expects Sony to lose more than $1 billion on hardware manufacturing alone during its next-gen console's first 12 months on sale, a figure that may prove unrecoverable.
SPOnG wrote:
production costs of PlayStation 3 to be around $500, with the machine likely to ship at $499 – equating to a loss of around $1.18 billion in the first year
My maths makes that a $1 loss per unit. I can't see Sony shipping 1.18 billion PS3s. Or even 0.18billion counting the above $1billion costs.
It's not really clear how this all fits together. Pretty poor writing.
Does anyone check content before you put it on?
No longer frequenting SPOnG. It's been nice knowing you guys :).
8 direct replies to this message.
Mon, Dec 19, 05 @ 13:45
I dont think the capital E is really important...
As for the figures, they dont add up, but my guess is the unit cost must be $600 instead of $500. Then if they sold 12 million units in the first year (do-able), it would make sense.
My guess is yes unit cost is high, but once BD drives goes into full production, say 3 months after launch, you can knock at least $100 off the cost.
As for the figures, they dont add up, but my guess is the unit cost must be $600 instead of $500. Then if they sold 12 million units in the first year (do-able), it would make sense.
My guess is yes unit cost is high, but once BD drives goes into full production, say 3 months after launch, you can knock at least $100 off the cost.
1 direct reply to this message.
Mon, Dec 19, 05 @ 13:49
Dont they always lose money on console hardware, for the first couple of years at least.
IIRC the PS2 was sold at around a $100 loss on each system at launch.
IIRC the PS2 was sold at around a $100 loss on each system at launch.
2 direct replies to this message.
Mon, Dec 19, 05 @ 14:16
People are also failing to grasp the idea that, should either HD-DVD or the ready-for-market Holographic storage (300GB at 160MB/sec? yes please) win the media war, the PS3's costs will be for naught. Will people still want to make games for it if the media's only used for that? And before anyone uses the UMD example, I counter with pre-recorded Minidisc. Hah!
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Mon, Dec 19, 05 @ 14:17
My bad. I "proofed" it, in something of a rush, and didn't spot the numerical typo (or the cap E). Then I had to rush out of the office. Duh. 'Pologies.
Corrected to a sales figure of 399 per unit.
Corrected to a sales figure of 399 per unit.
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