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  1. #1
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    Sony makes $18 in profit for each PS4 sold!

    Wow, I am damn impressed that they aren't taking a hit on each system that goes out the door!

    http://electronics360.globalspec.com...eakeven-on-ps4


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    There's no way controllers should be sold for more than $30-40 if they cost <$20 to produce.

    Given that a ton of people will buy a 2nd controller with their system, that actually makes it closer to $60 profit per console.


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    Quote Originally Posted by Shibby View Post
    There's no way controllers should be sold for more than $30-40 if they cost <$20 to produce.

    Given that a ton of people will buy a 2nd controller with their system, that actually makes it closer to $60 profit per console.
    You think shipping is free?

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    Quote Originally Posted by Shibby View Post
    There's no way controllers should be sold for more than $30-40 if they cost <$20 to produce.

    Given that a ton of people will buy a 2nd controller with their system, that actually makes it closer to $60 profit per console.
    I guess one thing we also have to take into consideration is the shipping cost as well as any profit the store selling it gets...as for the controllers, we all know accessories carry high margins, that is how they make their money...games and accessories!

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    You have to figure even if they make just 3 bucks a unit that is still 3 million dollars in 24 hours. That is a Damn good day

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  7. #6
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    Quote Originally Posted by thanatos144 View Post
    You have to figure even if they make just 3 bucks a unit that is still 3 million dollars in 24 hours. That is a Damn good day

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    Exactly! Talk about starting off the new generation on the right foot! I am curious to see XB1's BOM, just wondering how much the Kinect actually costs to produce...

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    How long did it take for them to start breaking even on PS3s? Like 3-4 years?


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    Quote Originally Posted by MonkeyClaw View Post
    Exactly! Talk about starting off the new generation on the right foot! I am curious to see XB1's BOM, just wondering how much the Kinect actually costs to produce...
    Won't happen. Like we will never hear of when the novelty of it being a voice controlled tv remote wears off

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  10. #9
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    Quote Originally Posted by Shibby View Post
    How long did it take for them to start breaking even on PS3s? Like 3-4 years?
    That is because it cost anywhere from $800-840 to manufacture at launch and it took a while for the cost of the CELL processor and Blu-ray drive to come down in price...that system did not follow the typical console trend...

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    Quote Originally Posted by MonkeyClaw View Post
    Wow, I am damn impressed that they aren't taking a hit on each system that goes out the door!

    http://electronics360.globalspec.com...eakeven-on-ps4

    They aren't making money off of ps4 hardware. They are taking a loss.

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    add to that $18mil however many people took on the 1 year psn subscription and its anywhere between $18 - $68 mil profit in the first 24hrs.

    If controllers really cost about 50% of retail cost to manufacture and ship, then perhaps another $30 profit per second controller sale.
    Chances are there is a profit margin off the camera also.

    I'd say Sony made some nice bank last week. Which considering their tracks record the past 8 years, they are probably breathing a massive sigh of relief.

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  14. #12
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    Quote Originally Posted by MonkeyClaw View Post
    I guess one thing we also have to take into consideration is the shipping cost as well as any profit the store selling it gets...as for the controllers, we all know accessories carry high margins, that is how they make their money...games and accessories!

    The value of anything is how much someone is willing to pay for it. If Sony or MS or anyone makes something for a buck and can sell it for $50.....they will.....and they should.
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  16. #13
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    that's a lot of money in 1 day




  17. #14
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    I'm trying to understand this loss and here is what I don't understand. When people run a business, they don't make something that cost $100 to make and turn around to sell it for $50. That is counter productive in business and makes absolutely no sense. It wouldn't make one bit of sense for Sony to make the PS4 and to turn around and sell it at a loss. The point of any business is to make money, period. There are no buts in the matter. So what I'm trying to understand is where this loss is coming from when people are talking about it on the internet?
    Last edited by Demi_God; 11-22-2013 at 21:03.

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    Quote Originally Posted by Demi_God View Post
    I'm trying to understand this loss and here is what I don't understand. When people run a business, they don't make something that cost $100 to make and turn around to sell it for $50. That is counter productive in business and makes absolutely no sense. It wouldn't make one bit of sense for Sony to make the PS4 and to turn around and sell it at a loss. The point of any business is to make money, period. There are no buts in the matter. So what I'm trying to understand is where this loss is coming from when people are talking about it on the internet?
    It depends on if they can make more money off games and peripherals

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  20. #16
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    Quote Originally Posted by MATRIX 2 View Post
    They aren't making money off of ps4 hardware. They are taking a loss.
    Where is the other cost at? Distribution?




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  21. #17
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    Quote Originally Posted by thanatos144 View Post
    It depends on if they can make more money off games and peripherals

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    Right. The console business is not about making money on the consoles themselves. Licensing is where the money is.

    Quote Originally Posted by PS4freak View Post
    Where is the other cost at? Distribution?
    That and you gotta think about the fact that this is a price list of stuff. Still have to pay Foxconn for building it.

    edit: oh....didn't see manufacturing costs. There is probably other overhead as well.
    Last edited by Christopher; 11-22-2013 at 21:11.
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  23. #18
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    Profit on system's wouldn't initially be in Sony's immediate interest but it's immensely positive that they're not losing money. Strong sales figures indicate they're making a tidy profit, too. Good time to be SCE. Anyone know how much Microsoft is making on each Xbox One?

    Follow me on Twitter @Adam_PSU for all things PlayStation!

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    Quote Originally Posted by MATRIX 2 View Post
    They aren't making money off of ps4 hardware. They are taking a loss.
    $372 Bill of Materials
    $9 Manufacturing

    total cost $381

    sell for $399

    profit $18

    assuming the data is accurate

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  26. #20
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    Quote Originally Posted by ShockWave View Post
    Profit on system's wouldn't initially be in Sony's immediate interest but it's immensely positive that they're not losing money. Strong sales figures indicate they're making a tidy profit, too. Good time to be SCE. Anyone know how much Microsoft is making on each Xbox One?
    Yeah....I think I saw somewhere that they are selling on average, 2 and a half games per console. More than likely it is already profitable per unit, but they have to make up for all the R&D costs to see profits as a company.
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  28. #21
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    They're losing money. This is only the BOM, doesn't include all other stuff surrounding the PS4 like advertising, R&D, etc etc.


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    Quote Originally Posted by Vulgotha View Post
    They're losing money. This is only the BOM, doesn't include all other stuff surrounding the PS4 like advertising, R&D, etc etc.
    No. They are making a profit on the manufacturing of the console. Marketing, research and development, packaging, legal, translation, documentation, etc are centralised costs which are distributed among the various orgs within Sony. It's then rolled into normalised amount factored into all builds. It will be included in the per unit manufacturing costs.

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    This "article" is a bit silly. I seriously think these articles are written by uninformed eejits.

    Sony most likely sell to retailers at about ~$350. I mean in the UK 350 is the retail price, to figure out the VAT free price = 350/1.20 = 291.67 this is what the retailer receives, the rest goes to the government as TAX. Retailer is most likely buying at 250 maybe less from Sony's local distribution centre.

    Otherwise Retailers will not bother selling the hardware, and will concentrate on only selling the games where they can make money. What's in it for the retailer if they are tying up a HUGE amount of cash in stock that has a margin of 2%, It's nonsense. Golden rule - if the wholesale margin isn't at least 20-30%, don't bother -let someone else take the risk and headache.

    So why wouold sony sell at a loss? The same reason Canon sell you a printer for 30 but lock you into their own 40 ink cartridges for the life of the printer, same reason a mobile phone operater gives you the phone free on a 24 month contract. The same reason Cable companies give you a free PVR cable box.

    Sony will make about $10 or about 6.50 on every third party game disc published and sold on PS4, 15 - 20 on first party titles.
    Last edited by victorijapoosp; 11-22-2013 at 21:22.
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  32. #24
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    Quote Originally Posted by Sparc View Post
    $372 Bill of Materials
    $9 Manufacturing

    total cost $381

    sell for $399

    profit $18

    assuming the data is accurate
    Thats retail. They dont sell them to game stop or walmart at that price.

  33. #25
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    They should sell them on eBay... more profit.




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