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Analyst says Sony is losing $100 per Playstation 3 sold
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The Playstation 3 Slim.
At GamesCom 2009, Sony revealed the Playstation 3 Slim in addition to immediately dropping the price of the system to $299.99. It was a move that many fans and critics alike were anticipating for months.
The announcement may be a costly one for Sony. An analyst from Daiwa Institute of Research stated that the Playstation 3 costs 40,000 yen to manufacture. With the current price now at 29,800 yen, Sony losses 10,200 yen (approximately $108 USD) on every unit of the Playstation 3 sold to consumers.
Price has always been a big issue for Sony with their high-definition system. The Playstation 3 launched in North America with the premium price point of $599.99. This drove away many potential consumers; at the same time, Sony also had to incur huge losses (believed to be over $200) on each system sold.
The Playstation 3 ended up losing a huge chunk of market share to the Nintendo Wii and Xbox 360. Thus, Sony needed to work quickly in order to reduce manufacturing costs and, thus, lower the price of their system so that they can stay competitive.
Even with the Playstation 3 Slim, however, they are losing $100 per unit sold. Fortunately for them, they can easily make it back with sold-for-profit accessories, software licensing fees and other revenue streams relating to the Playstation 3. So while a $100 loss per console is a lot, Sony is in a better financial situation right now than in the past to incur it.
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