http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/ Engadget Comments for http://www.engadget.com/media/feedlogo.gif http://www.engadget.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 7:18PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
Well the Wii has always made money from the beginning. Not sure about the 360. I don't think the PS3 has moved 47.6 million units, however. I've heard more around 30 million units from every place other than this article.]]>Feb 5th 2010 7:25PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/I'm pretty sure the 360 was losing a LOT of money per console. The idea is that they make it up through game sales and Live.]]>Feb 5th 2010 7:41PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
Well...

The Xbox Breaks alot, and the PS3 costs alot, and doesn't have the same selection of games...

The Wii... its kinda like a cross dresser.. it doesn't quite fit in.. but does kinda work in alot of situations.

Oh you mean costing.. ]]>Feb 5th 2010 7:49PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 8:11PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 8:13PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Wii has always been profitable. I think it's always made something on the order of $100 per console sold.

The 360 started making a profit a couple of years ago, in 2007 I think, but not as much as the Wii.]]>Feb 5th 2010 8:20PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
Well, this reminds me of the common refrain for the 360. You may not want wireless controllers of a hard drive or a wifi adaptor, but you can buy that stuff extra.

You might not want a PS2 along with your PS3 (of course you do, the PS2 rocks), but you can buy a PS2 cheap cheap cheap to sit next to your PS3. I don't pretend this is ideal Sony made me expect this functionality. But if you are really willing to pay $400 for a PS2+ PS3... well, you're in luck, that's how much that costs.]]>Feb 5th 2010 8:25PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
I disagree that this proves Sony is making a bad decision.

they stratified. They were selling a ton of PS2s while selling a ton of PS3s, and guess what, both systems are very profitable. Even if the PS3 is a lossleader, its earlier than optimal launch won a format war that is worth tens of billions, has sold tons of digital content, and has sold a bunch of games.

It's not perfect. MS had a better idea of what the market wanted, I suppose, but the PS3 + PS2 as separate consoles wasn't the worst idea I ever heard of. It's just a really really competitive market these days.]]>Feb 5th 2010 8:31PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 8:35PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
PS2s are cheaper to make with a large market of used games, it feeds a lower market.]]>Feb 5th 2010 8:38PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/You have no idea how Sony makes their money. They're not stupid, they're a huge corporation that's been in business a long time. They sell playstation consoles to gain market share, not to make direct profit. Once they have market share, then they make profit by licensing Blu-ray, selling development kits to third party developers, certifying games made by third party developers, etc. Sony makes a huge amount of money non-consumers. They don't support ps2 emulation on the ps3 because the ps2 still sells! It's cheap to make and it's a revenue stream for them! Plus it gives them bragging rights about the longevity of their consoles. They would shoot themselves in the foot by killing that off. ]]>Feb 5th 2010 9:33PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/the wii at launch actually had a profit of $18]]>Feb 6th 2010 1:18AMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
The Xbox Division had a $1.9 billion operating loss for Fiscal 2007. Microsoft subsequently moved the Xbox Division inside the “Entertainment and Devices” division which includes the Windows Mobile Phone. So now no data is available on Xbox 360 revenue. So we don’t know whether the XBOX 360 is making money or losing money. ]]>Feb 6th 2010 2:16AMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Yeah, thought a $100 profit at launch was a bit too much, the margins & profits in the electronics game are tiny - thanks to all of the retailers scrapping to get those dollars from us, and squeezing the manafacturer]]>Feb 6th 2010 4:41AMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
The original Xbox lost money on every console sold.. The 360 has turned a profit on hardware since day 1.

I can thank my Sony for paying for a portion of my Blu-ray drive!]]>Feb 6th 2010 1:54PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 6th 2010 4:57PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
Not true. The XBOX 360 lost money every year revenue was reported until Microsoft stopped reporting revenue. Please check your facts before guessing. The bottom line is that no one (except Microsoft) knows whether the XBOX 360 is currently making money or losing money. It is that simple. ]]>Feb 6th 2010 7:20PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
Who the hell cares about the sales, Wii is for non-gamers, and PS3 has better exclusives than Xbox, that's enough reason for me to buy it.]]>Feb 7th 2010 8:09PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 7:24PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 7:40PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/that would work]]>Feb 5th 2010 7:43PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 7:44PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 7:47PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 8:09PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 8:29PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 9:19PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
Wait I don't think Sony sold that many ps3's yet.]]>Feb 5th 2010 7:25PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
http://www.scei.co.jp/corporate/data/bizdataps3_sale_e.html

56.2 doesn't look right either.]]>Feb 5th 2010 7:48PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
That chart says 33.5 as of the last quarter reported. You added in the last block in each row, which is the total of the others. ]]>Feb 5th 2010 7:56PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 8:06PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 7:25PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 8:23PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
If games were too expensive, people wouldn't be paying $60 for them. So what that they are more profitable? Obviously some things are more profitable than others. It's not like Sony can complain that N has a more profitable system or anything.

Business should sell their product for what it's worth. And it's worth the most the market is willing to pay for it. Shocking to me, but that's $60. I only buy really special games for $60, but I do it.

You WANT game devs and tech companies to make huge profits. that's what brings in lots of talented people to make more awesome stuff.]]>Feb 5th 2010 8:59PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
I am sure they didn't do 47.6 million units for the year or that would be a lot more that 17% increase over last years sales. If it is 47.6 million total has it now passed the Xbox 360 in total sales?

That would be a huge win for Sony coming from behind with a one year sales handicap to overcome. ]]>Feb 5th 2010 7:28PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 7:53PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 7:31PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
Give it another chance. the PS3 really does have a lot to offer that you can't get elsewhere. God of War 3 will be great, the remastered old crap is actually really great, and there are some really good exclusives now. No one thinks Sony handled the PS3 perfectly at the start but the nuts, but they have truly turned this ship around. It's a really good item to add to your entertainment center, even if you're a die-hard Halo fan.]]>Feb 5th 2010 8:27PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 11:40PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 7:33PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
Their not, $18 would be if Sony sold it for the whole $300 retail. Typically electronics is sold at double, double. So the unit cost of a PS3 to Sony is probably about $75, so they sell it to retailers at $150 who sell it to you for $300. So sony are taking a hit of $4-$5.

When you take into account the cost of game licensing the overall package makes a profit. Just

Finally, all top games consoles make a loss for (usually) 2 years to get market penetration and the fact that manufacturing cost will reduce over time.

That's what killed Sega, they calculated they needed another million or so untits in the market with the Dreamcast to break even and got cold feet. ]]>Feb 5th 2010 8:01PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/The Internal USA vs Japan company debacle over making the Saturn is what killed Sega.]]>Feb 5th 2010 8:26PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
JIMBOB, good grief man, Sony does not sell PS3s to retailers for $150 each. Are you kidding me? Retailers barely make any profit on consoles. I thought this was well known. No offense buddy, but it's simply the case that Best Buy or Amazon only make a couple of bucks on that PS3 or Wii. They count on accessories and games for profit.]]>Feb 5th 2010 8:29PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Good point, it's almost like selling Apple hardware]]>Feb 5th 2010 8:31PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 6th 2010 2:10AMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
Yeah I guess it's been a while since I was in retail (-: That was certainly the formula used in the late 80's early 90's. !]]>Feb 6th 2010 6:55AMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
Some retailers don't even turn a profit, they make losses on hardware sales. That's why some retailers won't sell the PSP Go, since it's a waste of shelf space and money to them. I certainly don't look at EB Games the same here in New Zealand ever since they thumbed their noses at my favourite portable console.]]>Feb 11th 2010 10:04PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 7:34PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/Feb 5th 2010 7:34PMhttp://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/http://www.engadget.com/2010/02/05/playstation-3-still-a-loss-leader-six-cents-for-every-dollar/
Also, congrats/thanks for Sony producing the only system worth more than what we pay for.]]>Feb 5th 2010 7:40PM