All that cost and no one to buy it
Three years after Sony released its overpriced PS3
console the outfit is just about to cover its development costs. The PS3 has been well above the price of its rivals since
it hit the streets partly because the components in the PS3 cost so much to assemble.
Beancounters at iSuppli believed that when it launched
the console cost Sony about $805 to build even though it was in the shops for
$599. Despite pleas from those in the know and technology
hacks, Sony refused to budge on the price and had its clock cleaned by Nintendo
and Microsoft.
But now, a new iSuppli report suggests that Sony may
finally be nearing the break-even point with the PS3. It said that its analysis
service estimated that the design cost of the new 120-gigabyte PS3 Slim comes
in around $336, while it sells for $299 in America. This means that Sony is still losing about $37 per unit
without factoring in the cost of marketing, royalties, box contents, and other
expenses.
Isuppli's 2008 analysis of the PS3's component costs
showed that the $399 console was losing at least $50 per unit. What this reveals is that at the lower price, Sony is
losing less money. Some of this is due to falling component costs which, if
they fall further, could result in the PS3 making Sony cash.
Sony, Microsoft and Nintendo are willing to subsidize the
cost of their video game consoles because they make their real money on sales,
and royalties, of games. The more consoles they can put in consumers' living
rooms the more they can make on the games. Quite why Sony cut its own throat on the PS3 by releasing
it at such a high price is anyone's guess.