The 124th reason that PS3 and Sony will DIE

[Glockstar]

PS3 = Dreamcast

Reason #124: Sony will NEVER make a single penny off of their PS3


Nintendo Wii
"We will make a profit on the entire Wii proposition out of the box--hardware and software," Fils-Aime told Reuters. "That really is a very different philosophy versus our competitors. We are a company that competes only in the interactive entertainment space, so we have to make a profit on everything we do."

http://www.gamespot.com/news/6157690.html


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Microsoft Xbox 360
When asked if Microsoft was already cooking up the next generation of the Xbox line, Bach said the engineering team was always thinking ahead, but the "first order of business" was to get the manufacturing costs of the 360 down. According to a recent survey by electronics-research firm iSuppli, Microsoft is currently turning a $75 profit on each 360 unit, up from a $126-per-unit loss at launch. Microsoft's Xbox division has lost money every year since its inception, but Bach previously said he expects it to turn a profit in the company's 2008 fiscal year.

http://www.gamespot.com/news/6162325.html


When the Xbox 360 went on sale last year, BusinessWeek commissioned tech researcher iSuppli to take apart the console and estimate how much it cost to manufacture. The firm concluded that, including all pack-in accessories (hard drive, controller, cables, and so on), each premium 360 set Microsoft back some $126. Before labor, just the parts it took to make the console cost $470--$71 more than the full-fledged system's $399 price tag.

Thanks to streamlined processes and ample component supplies, iSuppli estimates that Microsoft now makes $75.70 per Xbox 360 console.

http://www.gamespot.com/news/6161925.html


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Sony PS3
This week, iSuppli conducted a similar cost-analysis study of the PlayStation 3--with even more shocking results. According to the study, the hardware for the 20-gigabyte PS3 costs $805.85 alone--$306.85 more than the stated list price of $499. The 60GB model hardware costs $840.35, $241.35 more than the $599 sticker price Sony announced at the Electronic Entertainment Expo earlier this year. (Note: Sony did not announce price points of $499.99 and $599.99 at E3, although some retailers list the consoles' prices as such.)

Neither of the iSuppli estimates includes the cost of the A/V cables, power cord, or Sixaxis controller that come bundled with both models of the PS3. The initial launch shipment will also come with a Blu-ray disc copy of the Will Ferrell comedy Talledega Nights. "The size of Sony's loss per unit is remarkable, even for the videogame console business," read the iSuppli report.

http://www.gamespot.com/news/6161925.html

[Gadfly2317]

It would be nice if Nintendo would invest some of that profit into some kick-ass big-budget games. But with strippy-stuff like Brain-Training selling a bazillion copies, what's their incentive?

One of the things I liked about the original Xbox was the tech-edge it had and how much nicer the games looked, and things like the standard hard-drive and custom soundtrack. Though it was good sys wars fodder to poke fun at the profit loss, a number of people pointed out that, hey, it was still a good deal for the gamer. . . corporate charity for the gamer!

Sony has kinda screwed themselves here for sure. Not too smart. But they'll chug along bleeding money, and regardless, there will be some incredible games. Getting a system like the Ps3 with Sony footing $300 dollars of the bill for you. . . what a great deal for gamers and hi-def movie enthusiasts!