[citation][nom]anonymous1111111[/nom]more PS3 sales are getting Sony out of the RED???I though Sony is loosing money on each console sold since they cost more to produce.... so how can it be? They should get deeper in the red the more they sell.[/citation]
Don't believe they lose money off of the consoles.
They don't.They might lose profit over regular retail profits if the parts were sold on newegg.com or something(blu-ray especially) but it really doesn't cost as much as people think it does.I'd say it would cost ~120-200 USD to make a PS3.
Don't think that's the case. At launch, both PS3, Xbox 360, and practically every console made in the last few decades except the Wii is sold at a loss. This may change as time goes on and components become cheaper, but remember that prices of consoles go down over time, too.
"I would buy the PS3, i would buy it. But every time I go to Wal-Mart or GameStop and look at the PS3 section I am reminded that they don't even have two shelves of PS3 games."
True, I am probably going to buy a PS3 next month but not for games (well maybe one or two of them) but because of the whole HD video thing. You can play H.264 video on the PS3. The prices of other players are so close its almost a non choice
They don't.They might lose profit over regular retail profits if the parts were sold on newegg.com or something(blu-ray especially) but it really doesn't cost as much as people think it does.I'd say it would cost ~120-200 USD to make a PS3.[/quote]
Actually, yes, they do lose money of the sales of consoles and it costs significantly more then 120-200 $ to produce a single unit. When calculating the cost of a good or unit you need to calculate various things like the R&D required to create the unit and so on so forth, you cannot just look at the cost of raw materials and production. Currently, Sony, Microsoft and Ninendo all loss money on every console sale, the profit is in the game sales. This scenario is similar to printers, HP, Cannon, Lexmark and so on all lose money on every printer sold, they make the loss back with the sale of ink.