PS3 loses up to $306 per unit, Xbox 360 profits $76 per sale

16 November 2006

Posted by:Ferry

We’ve heard it all by now, delivery delays, technological blu-ray hurdles, missed production targets, high price tags, and recently cancelled pre-orders, we’ve all read the bad news regarding Sony’s new PS3.

But how about some good news? iSuppli‘s dissection (check their details schematics) reveals the PS3 is an engineering masterpiece that sets a new high mark for computing price/performance, even when considering it is more expensive than its nearest rival, Microsoft’s Xbox 360.

Sony is taking a considerable loss on each PlayStation 3 sold. Materials and manufacturing costs for the 20Gbyte model exceed the suggested retail price of $499 by a total of $306.85, iSuppli’s Teardown Analysis service estimates. For the 60Gbyte version, costs exceed the $599 price by $241.35.

In contrast, the HDD-equipped Xbox 360 has a manufacturing and materials total of $323.30, based on an updated estimate using costs in the fourth quarter of 2006. This total is $75.70 less than the $399 suggested retail price of the Xbox 360.

The conclusion is that the PS3 is not so expensive after all.

Even when compared to the competition, the console provides more processing power and capability than any consumer electronics device in history. Because of this, the PS3 is a great bargain, well worth its $599 price.

There you have it then, too bad you won’t be able to easily buy one due to massive shortages the rest of the year.

Categories: News

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kayne001

UMm PS3 just came out.

XBOX 360 when it came out was losing over $100 when it came out.

You should compare the PS3 losses per console at the end of this year. The fact that this article seems to forget this makes it seem like the authoer is a fanboy and just wrote this for other fanboys. Or maybe fanboys are just making this seem bad. I’m come on guys link to the news that showed 360′s losing over a hundred per console when it first came out, cause I’m 100% sure the 360 was losing money when it first came out.

All you fanboys that post figures etc fail to remember PS3 is nothing to Sony, Sony makes many many other products, and you all seem to forget about the previous generations. Get your heads out your
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Hitmanhacker

Yes sony has other products but hello there music business lost alot with that rootkit they had to replace 1 million laptop batteries plus the bluray players arent selling very well not only that there movie business is not doing that great
OMFG_NOOBS

Quite simply:

XBOX 360>PS3

PS was known only for its RPGs, now MS owns FF. 360 also has halo biatches
Yka

Jesus. Why someone count numbers like this?

Next to every damm device / business etc. you do make loses at the start. If you would count price / device at the first 10 pices coming out of the line it would be millions $ loses per device.

Sony & MS has likely plans to sell more than 10 pices and thus total production expectations should be considered to get any reasonable number.

As we see MS starts now to break even with XBox 360 HW sales and we will see the PS3 in similar state later… It is just marketing bull sh*t to say that HW makes loses.
http://rapid-hook.com carl

Why Buy A PS3 ?? Does this question need to be asked?,

Not only is it the best console available but you can also install windows, and since it has a High powered SPEC its cheaper than buying a pc
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John

Read. Unbias non-fanboy rhetoric, numbers are numbers.

http://ce.seekingalpha.com/article/34357
miggy

this is it for ps3 unless they come out with ‘metal gear solid:snake Vs. liquid when they where babies’ since they have come up with all the other names. whoever is buy ps3 for blu-ray is plan stupid. have you ever seen a blu-ray rental dvd at ANY dvd store? the answer is no….they don’t rent them and only a japanese would spend 60+ dollars to buy a blu-ray dvd movie. 360 doesn’t come with HD-dvd and all the other junk like blue tooth and a space ship. why pay for all this junk that comes with ps3 when u can buy a true game console with better graphics, unmatched xbox live and games like gears of war and halo….can a gamer ask for anything more? sure, my 360 doesn’t hoover in air during its commericals but its a far far far better system FOR A GAMER. not to mention that my 360 can connect to any computer on my network, transfer files on the network, and works like a hub to connect my computer to my tv…wirelessly to watch videos, pictures or listen to music. and yes 360 also comes with usb ports so you can connect your keyboard, ipod, zune etc to it. ok let me get off now…i am gonna go play pokemon on ps3 NOTTTTTTT.