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In Reply to: RE: What you're looking at is essentially meaningless posted by racerguy on December 16, 2007 at 07:21:32
First of all, those analyses of the "hundreds of dollars" per unit Sony is said to be losing on each PS3 are bogus. Sony manufactures millions of PS3 units and therefore orders parts by the millions. If you order parts in bulk, the costs per part go down astronomically. But yeah, if you personally bought all the materials you need to make a PS3 and assembled one, you would lose a lot of money if you sold it for $399. That isn't the case with Sony. Heck, you'd also lose money on that cheap Toshiba doorstop, if you assembled one buying each part at list price and sold it for $99.
As for Sony's latest sales results...reported for Q2 which for them ended Sept. 30...in bln yen...was 2,083 up from 1,854 in Q2 of 2006.
Gee, racer, that seems like double digit growth...not bad at all.
-------------"I have found that if you love life, life will love you back." -Arthur Rubinstein (1887-1982)
Follow Ups:
"Sony Corp.'s Game division made up by subsidiary Sony Computer Entertainment Inc. revealed operating losses today for the second fiscal quarter of 96.7 billion yen ($841 million). The amount more than doubles last year's losses of 43.5 billion yen for the period of July through September."
Just the facts.
1 minute on Google found this, so you aren't trying very hard.
Jack
What you failed to understand is that bringing a quality product to market requires serious expenses in R&D and marketing at the outset. But if you can weather that storm and remain profitable, as Sony clearly is, you stand to reap benefits for many years. That's why the PS2 has now exceeded 120 million units sold...no doubt driving the company's commitment to quality in the PS3. Are you really so myopic that you think Sony will lose money on this product? Did you think that about PS2?
-------------"I have found that if you love life, life will love you back." -Arthur Rubinstein (1887-1982)
You said they weren't losing money on the PS3. They are, HUGE amounts.
Jack
-------------"I have found that if you love life, life will love you back." -Arthur Rubinstein (1887-1982)
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...that you have absolutely no idea what you're talking about.
Congratulations.
-------------"I have found that if you love life, life will love you back." -Arthur Rubinstein (1887-1982)
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