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Question of the Day: Will you be subscribing to the new Disney+ R49 streaming package?
Profit on consoles
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Nerfherder
Honorary Master
Ps3 sells at a loss, I read that. Sorry no link
But yep... all the profit is in the games. But for every unit sold that person will purchase games and controllers etc. Its the same with printers and print cartrages.
But yep... all the profit is in the games. But for every unit sold that person will purchase games and controllers etc. Its the same with printers and print cartrages.
Nerfherder
Honorary Master
Yes they do... but the prices are set by the distributers so you have a single exit price. the only way you get different prices is with bundles.
GavinMannion
Executive Member
Sony is still making a loss. Microsoft is expected to be making $50 per console and Nintendo over $100. All the real money is in the games.
I have also seen the cost price that retailers buy these things at and they are making very little profit on consoles. They prefer to sell games and accessories really.
I have also seen the cost price that retailers buy these things at and they are making very little profit on consoles. They prefer to sell games and accessories really.
i really dont think sony would sell their console at a loss...its too ridiculous...even tho the money is in the games i still think its a lie...cause i mean...who does that...honestly...nobody would put something on the marrket if it doesnt bring in profit...maybe its very little profit but surely nt at a loss
doobiwan
Executive Member
smb, they are, that's a fact. It's a common practise that's referred to as the "razorblade model". I think it was Gilette that did it first - Make a loss on the razor to get it in the customers hands then make more profit on the blades, which they have to buy, because they're using your razor.
When PS3 launched it was calculated to cost $800 to manufacture (by iSupply, they a recognized service). Then on top of that you have to add, shipping, tax and retailer margin. Sony had to sell $3 billion worth of shares in their insurance business to float the games division because it made a $900million loss last year. The costs come down over time, the 360 is already considered to be lossless, if not turning a profit after the last price cut. The PS2 has depreciated to teh point that it turns a profit on the device and the Wii is an overclocked Gamecube so it's always made a profit.
When PS3 launched it was calculated to cost $800 to manufacture (by iSupply, they a recognized service). Then on top of that you have to add, shipping, tax and retailer margin. Sony had to sell $3 billion worth of shares in their insurance business to float the games division because it made a $900million loss last year. The costs come down over time, the 360 is already considered to be lossless, if not turning a profit after the last price cut. The PS2 has depreciated to teh point that it turns a profit on the device and the Wii is an overclocked Gamecube so it's always made a profit.
Yes - and I doubt Core would distribute the Wii if they weren't raking it in.
Nerfherder
Honorary Master
added to that the research and dev costs...
The thing is that by the time the PS3 becomes obsolete it will be making a profit on the consoles.
This is why games cost so much...
The thing is that by the time the PS3 becomes obsolete it will be making a profit on the consoles.
This is why games cost so much...
Nerfherder
Honorary Master
Retailers allways take their profit directly off the product its self. The only time they sell at a loss is to clear old stock. They cant sell a console hoping to make more money off the games because they cant make sure that you purchase the games from them.