After years of losing money on each unit sold, a new graphics card will allow Sony to make a profit on every PlayStation 3 out the door.
The PlayStation 3′s new motto is that “it only does everything.” The gaming console also has a Blu-ray player, Web browser, and it even streams Netflix. Well, now Sony can add one more thing to the list of things the PS3 can do: It can make a profit.
Since the PS3’s debut in November of 2006, every console been sold for a loss. With the move to a new cheaper and cooler RSX graphics card, the PS3 is finally showing a profit on each unit sold.
Engadget is reporting that the new chip is the final component needed to lower the manufacturing costs enough to make a profit, although no word yet on exactly how much profit that is. The chip’s new design decreases power consumption by 15 percent, which lowers the heat and allows a smaller cooling unit and heat sink as well, both of which further help to bring the manufacturing costs down.
When the PS3 originally debuted in 2006, early estimates put the manufacturing cost per unit at around $805 per console, which lost Sony between $225 and $305 per unit sold. It isn’t uncommon for consoles to sell at a loss as manufacturers make up the difference through game prices and additional components like controllers, while waiting for the component pricing to inevitably drop, but the costs were higher than anticipated. By comparison, the Xbox 360, which sold at a loss of around $100 per unit when it debuted, quickly began to see a profit of $75per console within a year and a half of the its release.
In February, the Wall Street Journal broke down Sony’s fiscal reports for the third quarter and found that the Playstation 3 was still losing about $18 per unit.
The newfound profitability is good news for the PS3, which has been outselling the Xbox 360 on a month to month basis since last year. This also means that we can expect to see more potential prices drops in the months to come.
Showing 19 comments
RSS@pp. Maybe you should take a look at PS3 graphics before writing such garbage. Currently it beats 360 hands down. Last gen graphics? What a joke. Let's see how 360's last gen DVD can handle future graphically intensive games. I guess they could always just use 3 or 4 discs, cos disc swapping is so next gen.
Japanese are just sad and lowlife they should quit videogames and keep making rice for us Americans.
I would like to mention that that Had to happen.
the MS Xbox360 still has problems with about 50% on the return list.
MS is still, not making money. And probably wont until the Next generation of console.
Sony PS3 is solid. Sony learned lessons from the Previous console. What they didnt learn was that MS had already jumped on the Net with the Xbox and fixed all their Glitches, and stabilized. They charged money and PAID for the buildup on the net universe.
With the PS3, sony jumped head first into the Net and found it Strange. They also didnt charge the customer for THEIR net mistakes. Sony has learned quickly and now they have a good service.
I would like to mention that that Had to happen.
the MS Xbox360 still has problems with about 50% on the return list.
MS is still, not making money. And probably wont until the Next generation of console.
Sony PS3 is solid. Sony learned lessons from the Previous console. What they didnt learn was that MS had already jumped on the Net with the Xbox and fixed all their Glitches, and stabilized. They charged money and PAID for the buildup on the net universe.
With the PS3, sony jumped head first into the Net and found it Strange. They also didnt charge the customer for THEIR net mistakes. Sony has learned quickly and now they have a good service.