Thread: PS3 line ups?
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Old November 22, 2006, 11:20 PM
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Gav Gav is offline
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Originally Posted by UNESCO View Post
that's something Sony or any other corporation could do and hope of ever preserving customer loyalty. Sure, they may be able to sell the 400,000 units for 2-3x the "suggested" MSRP but the bad publicity would affect their long-term image in all markets - not something Sony can really afford at the moment IMHO with their recent gaffes.

The money gained on the first few consoles would be a pittance compared to the royalties gained by Blu-Ray becoming the dominant next-gen format; a Blue goldmine ;)
The Wii launch went off with no major issues as far as I know (I guess it's partially due to the younger crowd) and even though they sold for less per unit, they had alot more stock than Sony did at launch and probably ended up making/losing less money. They also had 20 titles on launch which helped as well.

On a side note, it looks like Microsoft may actually be making money on the Xbox 360 now.

"Microsoft Corp., the world’s leading maker of software, is earning money selling the Xbox 360 hardware, according to updated teardown analysis from research firm iSuppli. The information means that the software giant has managed to lower the price of its latest game console by nearly 40% in one year.
According to iSuppli’s most recent analysis, the premium version of the Xbox 360 game machine equipped with hard disk drive 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. Even though it is obvious that Microsoft still has to subtract freight, toll, retail partner’s profit and other possible charges, it is highly likely that Microsoft has either managed to reduce its loss to minimal, or is making a tiny profit selling the $399 flavour of the Xbox 360.
A year ago the total bill of materials (BOM) cost for the Xbox 360 Premium, including hard disk, the DVD Drive, enclosures, the Radio Frequency (RF) receiver board, power supply, wireless controller, cables, literature, and packaging, reached $525, well above the retail price of $399, according to iSuppli. Considering the up to date BOM, Microsoft has managed to reduce the pricing of its console by over 38.5%."

You can read the rest of the article over at X-Bit labs.
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