Doesn't the PS3 cost $494 to make?

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Dragondudefla

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#1 Dragondudefla
Member since 2005 • 355 Posts
    Why is everyone saying that the PS3 will cost over $500 when it only takes $494 to make, while the 360 costs $715 to make, and it sells for $400.

    Please correct me if I'm wrong.
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Puckhog04

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#2 Puckhog04
Member since 2003 • 22814 Posts

Link on the 360's cost to make?

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-DragonKnight-

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#3 -DragonKnight-
Member since 2004 • 2636 Posts
That was just a prediction, I don't think we know how much it officially costs yet.
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BobbyBobby85

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#4 BobbyBobby85
Member since 2003 • 10336 Posts

A link where you heard those figures would be nice...

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garhart

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#5 garhart
Member since 2004 • 2752 Posts

    Why is everyone saying that the PS3 will cost over $500 when it only takes $494 to make, while the 360 costs $715 to make, and it sells for $400.
Dragondudefla

Where did you get the $494 price tag?  Sony is putting in super high-tech components (cell CPU, Blu-Ray, Video w/HD support).  Since "just"  Blu-ray machines are expected to be out this year with a $500 to $1000 price tag, the PS3 actual cost will be higher than any price they sell it.  

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MC_Killa86

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#6 MC_Killa86
Member since 2002 • 529 Posts

A link where you heard those figures would be nice...

BobbyBobby85

He found it here:

http://www.joystiq.com/2005/12/28/xbox-360-costs-715-to-make/

But, it seems the source is by no means reliable.

http://seoblackhat.com/2006/01/02/xbox-360-doesnt-costs-715-to-manufacture-but/

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pins_basic

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#7 pins_basic
Member since 2003 • 11521 Posts
no way does the 360 cost over 700 to make
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lynux3

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#8 lynux3
Member since 2005 • 7276 Posts
According to analysts, yes. I believe this price is one of the more accurate production costs.
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lynux3

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#9 lynux3
Member since 2005 • 7276 Posts
He got the $494 production cost from here.
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Golden_surfer

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#10 Golden_surfer
Member since 2004 • 5749 Posts
No. I think that's from merryl linch and they can't possibly know how much it's going to cost.

I bet it's going to cost much more than that. Otherwise Sony wouldn't be so secretive about the pricing of the console.
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kawakev

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#11 kawakev
Member since 2003 • 3405 Posts

[QUOTE="Dragondudefla"]    Why is everyone saying that the PS3 will cost over $500 when it only takes $494 to make, while the 360 costs $715 to make, and it sells for $400.
garhart

Where did you get the $494 price tag?  Sony is putting in super high-tech components (cell CPU, Blu-Ray, Video w/HD support).  Since "just"  Blu-ray machines are expected to be out this year with a $500 to $1000 price tag, the PS3 actual cost will be higher than any price they sell it.  

OMG besides the point and bad economics/hardware knowledge, get out please.
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das_beck

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#12 das_beck
Member since 2004 • 1204 Posts
"to make" can mean many things and you really can't compare how 2 separate companies account for all the costs involved from conception to actually putting a console on a retail shelf. I'm not even gonna begin to try to list the variables but there are probably thousands of accounting differences in any 2 "costs" you hear quoted by MS or Sony.
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flynn_p2006

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#13 flynn_p2006
Member since 2005 • 834 Posts
according to forbes.


Other analysts have estimated that Sony could launch about a million PS3s before 2006 is over--but that's the same number of units that were shipped by Sony during the launch of the PS2, and if a million units wasn't nearly enough in November 2000, it won't be enough in 2006 either. Finally, the high-end console looks as though it could break the proverbial piggy bank--not just for the consumer but for Sony too. The company made sure to warn consumers in May 2005 that the new machine would be expensive. It didn't say how expensive, but with advanced components like a new "Cell processor" and a high-definition Blu-Ray disc drive, the PS3 will likely cost consumers more than the Xbox 360, which retails for $400.

Even at a pricey $500, Sony will be taking a loss on each machine, just as it did with each earlier PlayStation model. The company will hope to make money selling software for the console down the line--the same strategy Microsoft and Nintendo have taken.

article from
http://www.forbes.com/digitalentertainment/2006/01/19/sony-playstation-stringer_cx_rr_0119sony.html
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Newsboy

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#14 Newsboy
Member since 2004 • 6534 Posts

"Making it" refers to price of parts. Then there's advertising, boxing and shipping, paying your employees, paying the utility bills, Maintaning suitable working conditions yadayadayada...PS3 costs a lot more than $494 a box.

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Tib3ron

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#15 Tib3ron
Member since 2004 • 810 Posts
MS said they were selling 360 at a 100$+ loss (125 I think) so its not hard to calc how much it costs to make. As far as the PS3 goes I could care less about speculation until the actual pricetag is released. 
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garhart

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#16 garhart
Member since 2004 • 2752 Posts

OMG besides the point and bad economics/hardware knowledge, get out please.kawakev

according to forbes.
The company made sure to warn consumers in May 2005 that the new machine would be expensive. It didn't say how expensive, but with advanced components like a new "Cell processor" and a high-definition Blu-Ray disc drive, the PS3 will likely cost consumers more than the Xbox 360, which retails for $400.
flynn_p2006

Thank you flynn_p2006.  It looks like we have some posters that think they are more knowledgeable than Forbes...  It looks like someone needs to take their own advice.  8)

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lazy8um87

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#17 lazy8um87
Member since 2007 • 219 Posts
WTF
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Unforgiven2870

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#18 Unforgiven2870
Member since 2004 • 6386 Posts

[QUOTE="Dragondudefla"] Why is everyone saying that the PS3 will cost over $500 when it only takes $494 to make, while the 360 costs $715 to make, and it sells for $400.
garhart

Where did you get the $494 price tag? Sony is putting in super high-tech components (cell CPU, Blu-Ray, Video w/HD support). Since "just" Blu-ray machines are expected to be out this year with a $500 to $1000 price tag, the PS3 actual cost will be higher than any price they sell it.

Actually the production cost of those thing's should be lower.And those blu-ray players are soon to get a price cut as well.
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#19 Yellow_Rose
Member since 2002 • 16739 Posts
Why did you bump this dinosaur thread up?
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Heil68

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#20 Heil68
Member since 2004 • 60721 Posts
I'm thinking the 360 doesn't cost that much...Just my opinion
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jg4xchamp

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#21 jg4xchamp
Member since 2006 • 64040 Posts
360 makes a profit on consoles sold. so no. They make 70 bucks a console

and PS3 loses money for sony for each sold. so once again no. they lose 100 a console. and will lose 200 now with the price drop.
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Heil68

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#22 Heil68
Member since 2004 • 60721 Posts
Why did you bump this dinosaur thread up?Yellow_Rose
man...I noticed the first one he did...got suckered into this one :|