PS3 costs lower?

[Asus]

The blue lasers for Blu-ray and HD-DVD are getting cheaper and production is increasing. Could cut the PS3's production cost by $100.

Do you think Sony will lower the price of the PS3? Might help to get market share in order to sell more games, accessories and Blu-ray movies. Or will they hold the price to shrink their loss per unit?

(Xbox 360 Elite only costs $323.30 to make?)

 

[CyberPitz]

They should lower their prices. They may want to shrink their losses, but I'd rather have higher loss per unit sold then WAY more lost from lack of sales.

 

[MartinWintz]

The current production cost on the Blue-Ray drive is 125 bucks. Do they really plan on producing it for $25 any time soon? That's only five bucks more than the DVD player in the 360. I wonder where they're getting these numbers. Assuming they could produce the Blue-ray drive for 25 bucks, I really doubt they'd pass the entire saving onto the consumer (Especially since they're already losing 240+ dollars per unit.) Although I wouldn't be too surprised if the price dropped from 600 to 550. (My opinion is basically stolen from user comments on the subject, i know, i fail)

 

[CptStern]

it needs to be around the $200 mark if they want as much of an installed base as the PS2 ...most non gamers wouldnt even consider spending $600 on something most consider a toy

I really dont see why these companies dont just undercut each other by a wide margin ..I mean hardware sales are pretty finite but licensing can pay off right up to the death of the console it's made for

the big 3 need to get a $200 machine on the market ...nintendo smartly enough choose that route however the kinda casual gamer that was attracted to the xbox/ps2 is not served by the Wii ..I think the high entry level could potentially scare away some of their potential customer s ...few casual gamers want to cough up $600 especially since the perception is that it will be cheaper right around the corner ..meanwhile this sort of price scheme means fewer developers can afford to bring exclusives to the table ..but if the consoles had a much more reasonable price point consumers would be more willing to pick one up meaning a larger installed base for developers = more potential sales of game

 

[Kyorisu]

Or you could get it 100 cheaper right now.

http://www.ozbargainblog.com/2007/how-to-save-130-on-a-brand-new-playstation-3/

 

[Asus]

Or you could get it 100 cheaper right now.

http://www.ozbargainblog.com/2007/how-to-save-130-on-a-brand-new-playstation-3/

Why the OR? If they lowered the cost of a PS3 then you could get it even cheaper with that coupon. D:
And stern is right, $100 wouldn't be enough for the majority of those waiting to buy one. If $100 less would be enough for them to buy then they would have got a 20GB model. Sony will have to reduce the cost of other parts within the PS3 to drop the price further.

 

[Kyorisu]

Which can be done now and which can't?

 

[MartinWintz]

Which can be done now and which can't?

Is this a trick question?

 

[VirusType2]

(Xbox 360 Elite only costs $323.30 to make?)

Concerning the Xbox, I doubt they have a clue what they are talking about. They listed the Elite as having a 20GB hard drive also.

My first guess is that the title is a mistake, but how could anyone who has no background on this information be able to report it effectively.

Right here, in 2005, it was said that the 360 costs $715 to make.

And here is a recent report stating that in 2008, Microsoft will finally be able to make a profit (albiet a small one) when selling a 360 console.

Microsoft's Xbox 360 division revenue falls 21 percent
by GamePro Staff | 04/27/2007 | 10:49:00 AM PST print comments [ 97 ]

Microsoft's profits soar, but the company's entertainment and devices division are suffering some hard financial losses.
By Frederick Cannon

Microsoft still continues to assert its dominance over the PC industry, reporting an astronomical 65% spike in profit, amounting to $4.93 billion for the quarter ending March 31st, 2007. Meanwhile, revenue rose 32 percent to $14.4 billion, much of which can be attributed to the high demand of Microsoft's newest operating system, Windows Vista.


Will the Elite's added bonuses and increased production costs hurt or help Microsoft in the long run?
However, the same can't be said for the company's entertainment and devices division. This sector of the company, which houses the businesses for Xbox 360, Games for Windows, Microsoft Game Studios, and Zune, saw a 21% drop in revenue, amounting to totals of $929 million.

Although sales for the Xbox 360 format and the company's games have been consistently strong, production costs for the console still outweigh their sale price, which essentially means that the company still loses money on every console shipped.

In a recent conversation with AP, Microsoft CFO Chris Liddell expressed his belief that the division's shortfall was not unexpected, but he foresees shipping 12 million Xbox 360s by the end of this quarter ending June 30.

Microsoft now expects to take in between $56.5 billion and $57.5 billion in revenue for this fiscal year, with income in the range of $22.0 billion to $22.5 billion. The company also expects to see Xbox 360 production costs to stabilize in 2008, allowing the console to finally turn a profit for the company.

So Microsoft will be making money on the 360 in 2008.

But Sony will be losing shit loads of money. I suppose that is all part of the plan, as long as they don't go bankrupt. At the prices listed in the OP, they have a lot of work to do to cut prices. Otherwise, even if they sell well (which they aren't) they will still be taking a huge loss for many years.

What I think is funny is how Processor power doubles every 18 months or so. So the PS3 will look pretty sub standard in a couple of years anyway. Ah well, whatever.

 

[CyberPitz]

I love how people can tell when the consoles price will stabalize, when the consoles will take off, etc....

People are just throwing out numbers, and people are eating them up.

 

[Asus]

iSuppli told techreport.com that it was a Xbox360 premium and not elite. I guess digitimes got mixed up. (Source: iSuppli, compiled by Digitimes, May 2007) lol
You can tell by the chart, like you said for the hard drive and retail price (399).

And keep in mind most would compare the estimated cost for MS/Sony directly to Retail price. But what price are the retail stores buying the console at from MS/Sony? They will mark it up to the retail price for their cut.