PS3 breaks even

[Jangler]

http://online.wsj.com/article/SB123060418044641601.html?mod=googlenews_wsj

Sony Corp. is closer to breaking even on its new-generation PlayStation 3 videogame console because it costs 35% less to make than the previous model, according to technology-research firm iSuppli Corp.

The electronics giant is locked in a battle with Nintendo Co.'s Wii and Microsoft Corp.'s Xbox 360 for control of the videogame-console market. The cost cuts could help stanch the hardware red ink at Sony, which sold the previous-generation PS3 at a significant loss, making up for it with game-title sales and royalties.

Integration and key changes in components has brought the latest PS3's cost down to $448.73 from $690.23 for the first-generation model, said iSuppli.

The PS3 sells for about $399 in the U.S., at least $150 more than Wii and Xbox 360. However, the PS3 accounted for 16% of global videogame-unit shipments in the second quarter of 2008, second only to Nintendo's Wii, which accounted for 54% of the market.

Andrew Rassweiler of iSuppli predicted the PS3 may be able to break even in 2009 with further hardware revisions.

Part of the decline in cost is the result of "the normal learning curve and supply/demand factors that bring component prices down over time," iSuppli said.

Also, integration of components into the core silicon of the PS3 cut the number of individual parts to an estimated 2,820 from 4,048 in the previous-generation model with a 60-gigabyte hard drive.

The cost estimate of $448.73 doesn't include software, box contents and royalty expenses.

[Doc Holiday]

MS and Sony have been selling at a loss for ages, the xbox 1 didn't make a profit until it's later days, the reason for this is because with the new tech and better graphics they make 10x the loss back in royalties from they're games, I used to know the breakdown per new game, but the publishers pay a fee to Sony, MS and Nintendo so they can make they're games for the console and that's where MS, sony and Nintendo make all of they're money.

the fact that this is a big story for sony just shows how big of a failure the PS3 is, sony tried to do too much and ended up shooting themselves in the foot.

[tarheelpride]

i agree. PS3 had so much potential but it was doomed by dumb asses that only care about making money. they were more concerned with watching out for the shareholders that they forgot to cater to teh consumer (AKA lower prices)

what I would do is the following:

1) lower the price to $275 and take that loss. people will buy the systems if it's cheep enough. Also come down on the prices of accessories.

2) Bring back the 60 GB model. this was, by far, their best model. bring back the original, with backwards compatibility and all of its features. Let that and the 80 GB model be all that you sell. the 60 GB could be 275 and the 80 GB be 325

3) give incentives to developers. more console sales = more development for games. that simple. price drop = increased production in games. it won't hurt to simplify the process for them to use the games

4) fix the current bugs. make online play better and more streamlined. fix up Playstation Home.

5) Resurrect the PSP. The PSP is going down in flames as well (another reason why i'm dumping mines). save the PSP by bringing in developers who can create good games for it. integrate it within the PS3 and make it more interactive

IF sony does all of these things, by the end of 2009, they will be neck and neck with the wii

[Kurb]

No one is going to compete with Wii for awhile.

360 owns the diehard gamers, Wii owns them and everyone else.

Sony just never got their poo together.

[Doc Holiday]

No one is going to compete with Wii for awhile.

360 owns the diehard gamers, Wii owns them and everyone else.

Sony just never got their sh*t together.

I would say the xbox 360 owns the casual gamer(for now), the Wii owns those that are kids or those that are new to gaming (and have so for a long time too), and the PS3 has it's fans and a few casual gamers(used to rule the casual gamer).

The Wii may be killing in console sales but they are dragging way behind the 360 in game sales and you only have to look as far as your local game shop and see what the carry the most games for and see who's winning, right now it's the 360, my local shop has about 1/3 of it's shop for the 360 and the rest for everything else.

[Doc Holiday]

AN update from Gamespot.com on Sony

http://www.gamespot.com/news/6202693.html?tag=latestheadlines;title;1

from what I can gather the PS3 had been killing Sony by wiping out profits from it's Movie and Television sides of the company.

[tarheelpride]

i don't think Sony will last much longer with all of their pricing policies and trying to go by name recognition alone. this isn't 2001, when they were able to get away with it with the PS2. there's simply too much competition and they're too stubborn to change with the times. their faults really. maybe they can learn something from this

[Hotsauce]

I think what makes the X-Box360 inferior to the PS3 is the hyped up X-Box live. I rarely hear anything about PS3's online play. Plus, X-box Live is throwing things like Netflix in as a bonus.

[Zaximus]

I think what makes the X-Box360 inferior to the PS3 is the hyped up X-Box live. I rarely hear anything about PS3's online play. Plus, X-box Live is throwing things like Netflix in as a bonus.

Did you mean PS3 is inferior to xbox? Your message is odd.

[phidelt649]

Another issue with Playstation is their lack of console-specific games. Little Big Planet is a step in the right direction. When Microsoft first broke into the console market, a large reason for its popularity was Halo. If you wanted to play it, you had to own an xbox. Playstation can really claim too many huge games that are proprietary to their system.

[JefDav84]

Another issue with Playstation is their lack of console-specific games. Little Big Planet is a step in the right direction. When Microsoft first broke into the console market, a large reason for its popularity was Halo. If you wanted to play it, you had to own an xbox. Playstation can really claim too many huge games that are proprietary to their system.

Yea right now all i can think of that PS3 has that xbox doesn't, and is a big seller is Metal Gear Solid 4.

[tarheelpride]

and God of War

[Fright]

What really did them in was not paying for the exclusive rights to release GTA as a PS game only. They don't have games that draw the online crowd like Halo/GOW. The only thing keeping them afloat imo is Metal Gear Solid (whos head producer I read is working w/ Microsoft for the next halo).

[Zaximus]

The nail in the casket was when it was announced that the new Final Fantasy would be on Xbox as well as Ps3.