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[squatingyeti]

the only bit that looked wrong to me, was that the two 20gig hard drives were counted as the same price. it seems like all the enclosures and mountings are accounted for in the ps3 and the 360's hard drive naturally has a more complicated enclosure than the ps3s.

i didn't mention it because i figured you'd only be talking about a couple of bucks though, that won't exactly impact the totals much.

Won't impact the totals? A couple $s more expensive for every system turns out to be about $9 million. I'd say that's an impact. Many people forget even saving just a few $s can be huge when you're dealing with large quantities.

 

[HocusPocus]

I would trust any GAFer's assesment over some random dude who works in the business of knowing how much this stuff costs. Anyway, his breakdown may be guesswork, but most of the analysts here and in Japan have guessed similar numbers, and it's not like Sony's going to break it down for us. So let's just call it what it is - educated guesswork. And neither breakdown factors in marketing - one of the biggest costs for a hardware launch.

Yeah it's just an estimate. Perhaps the PS3 costs are a little high and the 360 ones a little low. I'd wager they are within 10% on both though .

 

[Hunter D]

looks like Nvidia is raping Sony like they raped MS.

 

[Pope Benedict XVI]

Did isupply do a costing for the 360 back at the time of its launch?

 

[Zombie James]

looks like Nvidia is raping Sony like they raped MS.

Different deals. Sony manufactures RSX themselves.

 

[plagiarize]

Which still says nothing about whether they think it's priced correctly. But it is being sold significantly under cost, based on their analysis. That's the definition of a bargain in most quarters, saying nothing about whether that actually makes it affordable to any given person.

it really isn't. and i'm not talking about affordability here.

do you know how much it cost to make all the parts in your pc? or your fridge? or your tv? or your vacuum cleaner? or microwave? etc etc?

no. you have no idea. because how much something costs to make has little bearing on whether or not it's a bargain.

 

[TheIkariWarrior]

* The dual Graphics Processing Units (GPUs),

ohhhhhhhhh, I really wish the PS3 actually had dual graphics processing units :lol

 

[Graphics Horse]

So this article basically confirms that the 60gb is a rip off over the 20gb version since we are being charged $100 more instead of being charged $40 more.

You heard it here first, 20GB PS3 > 60GB PS3 in terms of value.

I don't think that was ever in doubt. I expect to see 120GB versions next year for $700 dollars. If Sony had stuck to their original launch figures, they'd have lost a billion dollars by Christmas. It doesn't seem sustainable to me :\

 

[kaching]

it really isn't. and i'm not talking about affordability here.

do you know how much it cost to make all the parts in your pc? or your fridge? or your tv? or your vacuum cleaner? or microwave? etc etc?

no. you have no idea. because how much something costs to make has little bearing on whether or not it's a bargain.

Well, don't leave me in suspense - what's your definition of a bargain then, esp. since you said it's got nothing to do with affordability?

And please don't presume to tell me what I do and don't know about the cost of parts to manufacture various consumer goods.

If someone doesn't know what it costs to manufacture/produce goods they're interested in that's quite simply a blind spot in their ability to assess how good of a deal they're getting. It's one they can remedy in most cases, if they want to. There's no reason to try to devalue the merit of having that info at one's disposal.

 

[LJ11]

Bill Griffeth just interviewed Kaz on CNBC. He asked Hirai how much it costs to manufacture a PS3, Bill threw out that it's been reported to be around $840. Kaz said that it was strictly speculation and that it was fully dependent on what parts actually went into the system. :lol

Edit: Kaz did add that Sony intends to be profitable with the hardware, just like they were with the PS2.

 

[nelsonroyale]

r and d costs? because there is now way the ps3 is powerful enough to justify that manufacturing costs....I mean it isnt that powerful...and its my console of choice....

peace

 

[dalyr95]

I'd imagine that Sony also own the IP on the RSX and therefore can modify it, change it or do whatever they like with it. Thats what hit MS with the XBox they didn't own the IP so couldn't change it and it wasn't worth the effort on nVida's part to cost reduce the chip, they would rather spend the man hours on their newest chips.

Plus Sony would probably be in a better position than MS with the XBox, Nintendo and MS were already going with ATi, so nVida would be losing out big time, so Sony probably got a better deal

 

[plagiarize]

Well, don't leave me in suspense - what's your definition of a bargain then, esp. since you said it's got nothing to do with affordability?

And please don't presume to tell me what I do and don't know about the cost of parts to manufacture various consumer goods.

If someone doesn't know what it costs to manufacture/produce goods they're interested in that's quite simply a blind spot in their ability to assess how good of a deal they're getting. It's one they can remedy in most cases, if they want to. There's no reason to try to devalue the merit of having that info at one's disposal.

so how much did your microwave cost to manufacture then?

the definition of a bargain is as follows:

an advantageous purchase, esp. one acquired at less than the usual cost: The sale offered bargains galore.

cost is the price the item is usually sold for.

generally speaking a bargain is something that gives you a lot of value for your money. it's basic economics. prices are set by what people are prepared to pay for what something offers them by and large.

affordability is whether or not you can afford a given price. something can be good value, yet not affordable. like say, a jet fighter sold at half price. a bargain? yes. affordable to most people? absolutely not.

lets hypothesise that the in two months time the cost of some of these parts to sony drastically reduce. does that stop the console being as good value for money when it's still the exact same console that does the exact same thing?

lets pretend there's a shortage on memory chips and the prices of them go up (this happens quite a lot) is it now an EVEN better deal?

 

[The Faceless Master]

so how much did your microwave cost to manufacture then?

the definition of a bargain is as follows:

an advantageous purchase, esp. one acquired at less than the usual cost: The sale offered bargains galore.

cost is the price the item is usually sold for.

generally speaking a bargain is something that gives you a lot of value for your money. it's basic economics. prices are set by what people are prepared to pay for what something offers them by and large.

affordability is whether or not you can afford a given price. something can be good value, yet not affordable. like say, a jet fighter sold at half price. a bargain? yes. affordable to most people? absolutely not.

lets hypothesise that the in two months time the cost of some of these parts to sony drastically reduce. does that stop the console being as good value for money when it's still the exact same console that does the exact same thing?

lets pretend there's a shortage on memory chips and the prices of them go up (this happens quite a lot) is it now an EVEN better deal?

ebay says it's a bargain now, regardless of what's inside!

 

[mckmas8808]

WOW! Great article. Surprised that this thread is only 2 pages long.

I'm starting to see the clear truth now. Sony is in big trouble. If MS is close to making a profit now and are already at a lower price Sony doesn't stand a chance. How can they compete? HOW?

People at my job thought I was crazy for taking a 4 day vacation to buy a $500/$600 console. I told them it was a computer and could run Linux too. It's crazy because they said the max they would pay for something like that would be $350.

We all know that MS will drop the price of the 20 GB 360 to $350 next year, while the PS3 with the same HDD will be $500 with them losing $300 per console.

And by what this article is saying MS could drop the price next spring to $350 and still make a profit. O_O


I'm amazed. Looks like Sony had a good run. Oh well I'm still picking up my PS3 in about 6 hours.

 

[Kroole]

People at my job thought I was crazy for taking a 4 day vacation to buy a $500/$600 console. I told them it was a computer and could run Linux too. It's crazy because they said the max they would pay for something like that would be $350.

Geee. I wonder why.

 

[mckmas8808]

Geee. I wonder why.

Actually I don't know why. I'm getting paid to play a videogame system that I waited 1 and a half years to play. What's the problem?

 

[Striek]

I said it before, but if you're going to go out on something, you couldn't do that much better than the PS3(+PSP, to a lesser extent). I don't really care if a company gets ****ed over as long as I'm getting the best hardware possible for a low price.


Of course, I'll assume Sony has a long-term plan in the interim.

 

[Kroole]

Actually I don't know why. I'm getting paid to play a videogame system that I waited 1 and a half years to play. What's the problem?

I don't have a problem with it. Neither do I have a problem in seeing that they think you're crazy for wasting 4 days of paid vacation time for a freaking console.

 

[WARCOCK]

Somebody calculate next year's financial expectations(that huge projected loss) released from SCE with these numbers, see if it makes sense. Perhaps using japan's software tie ratio lolol.

 

[mckmas8808]

I said it before, but if you're going to go out on something, you couldn't do that much better than the PS3(+PSP, to a lesser extent). I don't really care if a company gets ****ed over as long as I'm getting the best hardware possible for a low price.


Of course, I'll assume Sony has a long-term plan in the interim.

Yeah I feel you man. It's just sad (honestly it is) to see a great company go out like this. MS is cool and so is Nintendo, but I've always like Sony's style and frachises. To think that in 2011 that might change. ~_~

I don't even want to think about it, but it's true. Unless Sony really gets those cost down to make the system they can't sustain these loses. The PS3 can bring down Sony to a level that they start selling thing off like their movie stuff to stay aboard.

It's crazy because people have said this a few times, but it's weird to actually understand how much is really at stake now. Blu-ray HAS to take off by 2008. And when I say take off I mean no HD-DVD and they need to start having the DVD crowd moving to HD movies on disc.

I hope Sony has a great plan, because right now we'd be lucky if we even see a PS4 any earlier than 2014 just to make up the loses of the PS3.

 

[alterego]

do you know how much it cost to make all the parts in your pc? or your fridge? or your tv? or your vacuum cleaner? or microwave? etc etc?

You think PC, fridge, TV, vacuum cleaner and microwave manufacturers sell their goods for $200-$300 dollars less than it costs them to manufacture?

 

[Spider_Jerusalem]

Wow, so MS is already profiting from hardware? Surely Sony helped them not forcing a price cut ;-)

 

[Spider_Jerusalem]

Did isupply do a costing for the 360 back at the time of its launch?

Yes. They were the ones telling it was losing $126 on each console.

 

[Pope Benedict XVI]

Yes. They were the ones telling it was losing $126 on each console.

Thanks for the reply. I found a few details of that original costing:

To build a Xbox game console, Microsoft spends about $552.27 ... An IBM chip for the Xbox 360 cost $106, the ATI GPU is about $141, including DRAM memory from NEC. The main memory from Samsung costs $65, and an SIS Southbridge chip cost about $12.

So it seems like the 360's CPU, GPU and main memory were all actually more expensive at launch than the ps3's (according to isuppli).

The 360's total cost has dropped by around $220??

 

[Zaptruder]

Thanks for the reply. I found a few details of that original costing:


So it seems like the 360's CPU, GPU and main memory were all actually more expensive at launch than the ps3's (according to isuppli).

The 360's total cost has dropped by around $220??

More intriguing is, why does the Sony I/O chip cost a magnitude more than the X360's?

I know it's a big sucker... but why is it so big? What on earth is going on there?

What I'd really like to see is how they arrived at the cost for individual parts... I mean, I remember reading a while ago, a report breaking down the cost of silicon for chip manufacturing (including yields what not), so it would be nice to see something like that for the individual parts too.

 

[Gahiggidy]

Where's the Wii breakdown?

 

[pilonv1]

Wow, so MS is already profiting from hardware? Surely Sony helped them not forcing a price cut ;-)

The 360 book by Dean Takahashi said they'd be moving to the first cost reduction of chips after about 12 months of production and they'd be making money by early 07. So they may be profiting from hardware already, but I wouldn't think to the extent listed.

 

[methane47]

Yeah I definately call bull on that one...

Since we all know that the X360 is still loosing money...

And before you retort yes retailers take a chunk but it's not as big as you may think... Some Best Buy mole a couple weeks ago reported that BB only made like less than 20 with each 360 sold... They make their money in accessories and games not consoles...

I definately think that the reason why its reported that sony is loosing so much on the PS3 is because they are factoring in The cost of R&D for the past couple years and prorating each PS3 for it.....

I'm sure they loose money on each just not that much..