Topic can be closed.

Tech insights link

Tech insights were so nice to tear down a PS4 revealing the following:

• SCEI (Sony Computer Entertainment, Inc.) CXD90026G SoC (includes AMD "Jaguar" Cores and AMD Radeon Graphics GPU)
• Samsung K4G41325FC-HC03 4 Gb (512 MB) GDDR5 SGRAM (total of 16 x 512 MB = 8 GB)
• SCEI CXD90025G
• Samsung K4B2G1646E-BCK0 2Gb DDR3 SDRAM
• Macronix MX25L25635FMI 256Mb Serial Flash Memory
• Marvell 88EC120-BNS2060-NNB2 Ethernet Controller
• SCEI 1328KM476
• Genesys Logic GL3520 USB 3.0 Hub Controller
  • International Rectifier 3585B N326P IC2X
  • TI 53123A 2AK64 D756

I'm glad it changed around for them since last gen.

Not sure if this has been posted yet. I thought it was interesting enough to share.

*Edit:

Topic can be closed, story has been debunked. Sony makes a minor loss on each console.

Well lems.....there it is

Wrong, Sony are not making a profit on hardware alone ones you factor in marketing, R&D etc. Sony themselves said so, they are hoping on software sales.

Awesome. This makes me even more satisfied with my purchase.

@Scipio8: Yes, I figured as much.

Still, it's a much better position than that they were at the start of the previous gen.

Yes, that I'll agree and with the next hardware revision they should be able to bring their manufacturing costs down lower.

What about thedevelopment,logistics,marketing,marginretailers,gamepad, software development,assembly?

I heard Microsoft is losing 300 per console because of the kinect, and Microsoft investor wanted to sell the Xbox divison and fire ballmer. Hopefully Apple doesn't buy Xbox division.

@cdr33: yes yes, I agree that there are a lot more costs. This article is just about the console.

I thought that would be clear enough. I'll edit the title for ya.

That doesn't count labor, ads, R/D, shipping...

Check your facts

http://www.forbes.com/sites/insertcoin/2013/09/06/at-500-microsoft-says-the-xbox-one-will-break-even-or-make-a-profit/

Each XB1 is either a profit or will break even

On the other hand

http://www.ubergizmo.com/2013/09/sony-losing-60-for-every-ps4-unit-sold/

Sony is losing 60 dollars on each PS4 sold.

-_-

DAMN I need a :roll: emoticon right about now...

What about investors wanted to sell Xbox divison?

What about logic and reading? I even edited the title to make it more clear.

All those things mentioned are not suddenly new in this gen.

They were there last gen as well, on top of the cost of the hardware, on which they made a huge loss at the start of last gen.

Now I don't have the exact numbers of last gen, but they sure are in a better position this time.

Much better than the $200 they were losing per PS3 sold

Investors and Stephen Elop want to sell the XB division and Bing because supposedly Microsoft's revenue would increase by 40% (basically more than what Sony could make in 10 years) so it's inciting to see why. Microsoft lost 3 billion dollars over 10 years but it was mainly during the original Xbox, the XB360 was profitable due to XBL and software sales.

If they do decide to sell the XB brand it probably won't be until after this generation is over.

It's not exactly profit when you pay into so much for investments.

The whole development of the PS4 put a hole in their pocket that will be recovered with software.

Erm no they will lose about $60 on each it seems http://www.eurogamer.net/articles/2013-09-20-sony-expects-to-recoup-playstation-4-hardware-loss-at-launch

That way be very accurate.

The site I linked to is talking purely about what the hardware costs. (if you were to buy the components).

So that's excluding royalty fees and such. Even the picture I posted says it's not 100% final.

That being said a 60$ loss is not much at all. It's one game worth.

Notice that asterisk? And where it says "estimate"? That means its just someone guessing, it isn't solid concrete 100% official from sony themselves. Thus that graph means nothing.

@killerfist said:

Tech insights link

Tech insights were so nice to tear down a PS4 revealing the following:

• SCEI (Sony Computer Entertainment, Inc.) CXD90026G SoC (includes AMD "Jaguar" Cores and AMD Radeon Graphics GPU)
• Samsung K4G41325FC-HC03 4 Gb (512 MB) GDDR5 SGRAM (total of 16 x 512 MB = 8 GB)
• SCEI CXD90025G
• Samsung K4B2G1646E-BCK0 2Gb DDR3 SDRAM
• Macronix MX25L25635FMI 256Mb Serial Flash Memory
• Marvell 88EC120-BNS2060-NNB2 Ethernet Controller
• SCEI 1328KM476
• Genesys Logic GL3520 USB 3.0 Hub Controller
  • International Rectifier 3585B N326P IC2X
  • TI 53123A 2AK64 D756

I'm glad it changed around for them since last gen.

Not sure if this has been posted yet. I thought it was interesting enough to share.

One thing you forgot is RESEARCH AND DEVLOPMENT. You think they just sat down over a cup of coffee and designed this. It took years of engineers testing and planning. The result. $60 loss when you factor this in.

Sony Fan trying to prove their business intelligence, once again proving they don't have any.

Cost of parts to make a console are not the only costs.

a lot more goes into production costs than that.

@killerfist said:

Tech insights link

Tech insights were so nice to tear down a PS4 revealing the following:

• SCEI (Sony Computer Entertainment, Inc.) CXD90026G SoC (includes AMD "Jaguar" Cores and AMD Radeon Graphics GPU)
• Samsung K4G41325FC-HC03 4 Gb (512 MB) GDDR5 SGRAM (total of 16 x 512 MB = 8 GB)
• SCEI CXD90025G
• Samsung K4B2G1646E-BCK0 2Gb DDR3 SDRAM
• Macronix MX25L25635FMI 256Mb Serial Flash Memory
• Marvell 88EC120-BNS2060-NNB2 Ethernet Controller
• SCEI 1328KM476
• Genesys Logic GL3520 USB 3.0 Hub Controller
  • International Rectifier 3585B N326P IC2X
  • TI 53123A 2AK64 D756

I'm glad it changed around for them since last gen.

Not sure if this has been posted yet. I thought it was interesting enough to share.

This has got to be one of the worst BOM break downs or price analysis I have ever seen. First of all the company would include an internal cost for R&D of the console and spread that over the cost of each console produced, the packaging and shipping is not included in this break down of costs either. Although the pricing of the individual pieces of hardware may be correct there are so many small costs that people forget about. Tariffs and tax's on products as we've seen in southern parts of America already need to be accounted for as well.

Sony is and will lose money on each console for a period of time, anyone who thinks other wise is clearly not very knowledgeable when it comes to economics. Gamer's should stick to gaming...

Not true, Sony themselves said it was about $60 loss per console.

Still better than PS3, but they arent making money on hardware.

Much better. Still, I think they are losing around $60 per console sold. Linky.

They'll turn that around fairly quickly... Within a year or two.

Sony is so ca$h

Going to be shame when MS kill off xbox division. More competition make better product.

This has been debunked already. Topic can be closed.

but its still a loss on every system sold. Fail thread/. Still, strong sales of the PS4 will spur software and services income which will help offset that.

*click*