Games We Love but Wish We Could Love Playing
11 hours 47 mins ago
Nikko Citigroup's analysts believe that the Playstation 3 will become a profitable machine for Sony from the beginning of August (this is also the same time they said the Slim PS3 will come out) which is actually 3 months early from Sony have said for themselves to be the break even point for the machine.
Sony also believe that the only way for them to make a profit out of the Playstation 3 is when the cell processor and the 90nm are shrunk to a smaller size, so if that is the case you may see Sony introduce this into the console sometime soon.
Nikko Citigroup analysts have upgraded their rating for Sony Corporation citing their anticipation that the company will break even or even turn a profit on the PlayStation 3 beginning in August.
If their prediction is accurate, then Sony will break even at least three months earlier than analysts had previously speculated. Sony itself was not sure when it would hit profitability on the console and Sony's Kaz Hirai said that the company would was shooting for the fiscal year beginning April 2008.
Sony has always said that PS3 production costs will only ever hit break even point when the "65nm Cell processor and the 90nm are shrunk to smaller, cheaper-to-manufacture sizes, and that comes with the side effect of drawing less power and creating less heat."
It should be interesting to see when profitability occurs because may lead to more price cuts for the consumer.
News story attached to:
Additional sources:
- PlayStation 3 will be profitable by August, says analyst (afterdawn.com)
Comments
lately sonys seems to be making really dumb decisions.
"Take the 60, it's a damn good deal..."
"No, I want a price cut"
"Well now there's a price cut, but there's a smaller HDD and no Backwards compatibility whatsoever; congratulations, moron, you had your chance."
"
What on earth did you expect, them to just lower the price? They were already selling at a huge loss and they weren't about to cut the prices and sell at an even greater loss. Things have to be done to cut prices.
Its just a rumor, there won't be a slim PS3, its just too early. Late 2003 early 2004 The slim PS2 made its way into the market. I can't see ever the PS3 getting one this early.
The PS3 costed $800 to manufacture, Now it costs $400 to manufacture. Its now half from what it was used to be, and this was stated 5 months ago on a gamegrep article i either posted or someone else. So from then to now, it has been making profit.
It badly need home to come out so they can earn shitloads of money off it.
I know Slumpy, but the console sales and amount of games being sold for them have been great this year and for the last 5 months.
They have sold some of their shares and re-couped some of the money they lost and the manufacturing has been slashed to half, and its going to be cut further in a month or two. People are living in the past.
The PS3 is not turning a profit, its a fact. You can't argue a fact. The PS3 is cheaper to manufacture today than it was yesterday, this much is true. The PS3 has been selling greatly in recent times, this much is also true. However, and pay attention now, all of those sales have not been enough to offset the hole that they have been in from the start. R&D has not been recouped, nor has the money they have lost thus far for selling the console itself at a loss. Do you understand that? They are not making money off of it because they have yet to draw even. In other words, they are only selling the PS3 at less of a loss now, than they were previously. If you loan me $10,000 to start a business, and I am making $500 off every sale, it is not a profit until I have made back that $10,000 PLUS put money in my own pocket. That is, by definition, what the word profit means. Its not a profit until you are making money, and that money is not made until you're above zero.
Now, I'm going to sit back and wait for you to argue your point.
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