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  1. #26
    Soldier 95B
    Quote Originally Posted by Flaw3d Genius View Post
    PS3 had a $1000 bluray player in it?
    Pretty much. Sony subsidized the cost to bring Blu-ray and the PS3 to the living room.

  2. #27
    Ultimate Veteran
    coolguy's Avatar
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    May 2005
    long island ny
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    parts are cheaper now i think the ps4 will cost under 400 dollars

  3. #28
    Soldier 95B
    My guess is $499 for the PS4.

  4. #29
    Dedicated Member
    victorijapoosp's Avatar
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    Sep 2010
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    I think People are forgetting the fact that Sony, and indeed all manufacturers sell to retail at about 50% or 60% of the retail price. Because you have to factor in the retailers' profit margin vis a vis the the RRP.

    So if we assume a 350 RRP price point in the UK, they may be working towards a manufactured unit cost of about 175 Then the have to absorb research and development, Marketing, shipping etc costs into the unit costs. Assume a fully absorbed unit cost is at max 180 and Sony sell wholesale at 185 they make 5 profit per unit. It's still a lot better than the losses they incurred on the PS3 for Sony. i.e. "we don't plan to lose money" statement becomes true. There's no profiteering going on here.

    Naturally, as with all consoles, the money is in the games not the system, they could probably spend 200 on manufacturing because the whole point is to play games. So buy 2 games, Sony receive 30 in royalties and they break even. In the case of the PS3 they gambled and probably thought, the average royalties received per console would cover the initial losses on the hardware.

    Unfortunately the Bluray and Cell BE R & D costs were astronomical, justified at the time because it was supposed to revolutionise consumer electronics by being used in TVs, server farms etc. But the risk didn't pay off.

    Now assuming Abenomics continues in japan and the currency weakens, even small profits from export may magnify in Yen profits as the Pounds, euros and dollars are converted back to Yen. Which is opposed to the previous years where other currencies crashed while the yen remained stable or appreciated therefore drastically reducing income from those markets.

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