Sony now making a profit on each PS3 sold?

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GavinMannion

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I may be wrong on this but since seeing the PS3 isn't manufactured in Europe it has to be imported from the US or Japan or where ever and thus Sony needs to pay extra taxes on it, hence the higher price.

Just my thinking. Could be wrong

(Yes i just Copy Pasted your site comment :p)
 
Unfortunately that logic does not hold up since it has to be imported into the States and Japan as well since it is manufactured in Taiwan.

Granted there are different tax rates and all that but the price difference is huge between the PAL and NTSC version.
 
Well the sooner they start recovering their losses, the sooner they can start introducing price drops. It's a win-win :D
 
Granted but they have already said they are not dropping prices until next year Oct/Nov... They need to recoup the NTSC losses :)

The Xbox is due a big price drop, M$ make $71 profit on every one sold at the moment....
 
The first "little" consideration is VAT - The US, and I believe JP, prices don't include any tax because they still use GST, all the EU prices include 17/18% VAT.

Then on top of that I believe there is some credence to the claim that the "channel costs" are higher in Europe - remember they have to have over a dozen distribution centres and administration "bases" for all the different languages.

But is is also £150 Pounds worth? no, I don't believe that. So yes, the EU gets the **** end of the stick again, but I don't believe Sony is even breaking even on those EU PS3's, maybe just losing a bit less.
 
doobiwan said:
Then on top of that I believe there is some credence to the claim that the "channel costs" are higher in Europe - remember they have to have over a dozen distribution centres and administration "bases" for all the different languages.
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er no.. Sony has a single distribution centre for Western Europe...
 
doobiwan said:
The first "little" consideration is VAT - The US, and I believe JP, prices don't include any tax because they still use GST, all the EU prices include 17/18% VAT.

Then on top of that I believe there is some credence to the claim that the "channel costs" are higher in Europe - remember they have to have over a dozen distribution centres and administration "bases" for all the different languages.

But is is also £150 Pounds worth? no, I don't believe that. So yes, the EU gets the **** end of the stick again, but I don't believe Sony is even breaking even on those EU PS3's, maybe just losing a bit less.
Click to expand...

Okay so making a profit might be a bit of a stretch, but I am sure the manufacturing costs have come down since that Engadget article.
 
And what about the costs related to re-designing the hardware to bypass the removed chip? I don't think its just a matter of pulling the chip out and powering it up?
 
Fudzy said:
And what about the costs related to re-designing the hardware to bypass the removed chip? I don't think its just a matter of pulling the chip out and powering it up?
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:confused: I see your loyalty knows no bounds :D..

Added costs in removing a piece of hardware to save costs... Only Fudzy could come up with that one :p
 
Do you know if they're using a new PCB? Its very feasible if the original PS3's circuitry relied heavily on the chip.

Also, please add links to the articles you reference on other sites.
 
I don't think there are any real reasons why there is such a huge difference between the US/Japan price and the Euro price, other than the simple one that they can charge more.
 
they are making a profit but i guess its not much as components are scarce as far as i know.To buil a ps3 is very expensive,I guess when the manufactures,makes it cheaper then we all win and sony europe(pal versions)
 
Um... ya... but remember that here in sa we get fingered with chappies, so it's no surprise that the ps3 is over priced. but remember that firstly shipping here cost's money and that a 14% vat is added on to the $600 console and that ster-kinekor take there little cut... i don't see why every ones so "OH MY GOD" about the fact that the ps3 costs $250 odd more here... so just grin and bare it as there's nothing at all we can do about it.
 
A product like the Nintendo DS costs almost $200 in Britain versus $130 in the US. At least when there was stock readily available in the US. Although the Xbox 360 and Nintendo DS consoles were the first where I could not import them into South Africa for less than the local selling price. I saved several hundred Rand when I brought my PS2 in, and that was from the UK.
 
GavinMannion said:
Woops here comes Fudzy and Retro.... Flame Suit on...
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lol :)

I don't really care about the whole price thing.

Anyways, I would feel better spending R6000 to get a PS3, than spending R3000 to get a 360. Not everyone wants the same thing...
 
scotty777 said:
i don't see why every ones so "OH MY GOD" about the fact that the ps3 costs $250 odd more here... so just grin and bare it as there's nothing at all we can do about it.
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It is exactly that type of attitude that will allow them to keep screwing us... Mind you my article was mainly about the UK and how they are getting ripped so that all these excuses about shipping and small markets and what not wouldn't become an issue. I could change UK to SA, Germany, France, Australia... whatever in the article. It's the PAL console that is overpriced* for no reason.

*Just comparing to the NTSC console.

Retro said:
lol :)

I don't really care about the whole price thing.

Anyways, I would feel better spending R6000 to get a PS3, than spending R3000 to get a 360. Not everyone wants the same thing...
Click to expand...

I was not talking about the actual price of the thing, I am talking about why it is R6000 here and in all PAL areas and R4500 in NTSC areas. Whilst PAL areas have less hardware inside.... I would be much more willing to buy a PS3 at R4500. Hell at R4500 it is a damn good deal....
 
A little bit off topic, but staying with the price. Why is it that when someone pays R5000 to import a Wii, nobody says a thing, but nobody can understand why someone would pay R6000 for a PS3? ;)
 
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