Just when I thought people couldn't be more ridiculous!

[RacerX]

So these are all made in China?

[Newc]

Of course. No one is going to pay for the components - ram, CPU, video/audio chipset, etc etc - AND a facility in America (local and Federal taxes, pocket-lining, healthcare, renter's insurance, etc etc) to build these things. They're going to farm it out to The People's Computer Manufacturing Facility #1134 and save money on labor.

I'd like to see a detailed list of how much it costs to build them - I doubt they're spending $800 on components and labor alone.

[rjohnstone]

Money did a write up on the PS3 and showed the high level costs... Sony is loosing money on these. No real details, but I suspect the CELL processors and the Blu-Ray drives have a lot to do with it.

[ApeDosMil]

So these are all made in China?

Do you have a problem with China, or out sourced labor?

Because if things were made in America they would cost a whole lot more to produce here rather than over seas.

[texasfury]

.

[Mrs Tekky]

Money did a write up on the PS3 and showed the high level costs... Sony is loosing money on these. No real details, but I suspect the CELL processors and the Blu-Ray drives have a lot to do with it.

Actually, every company that makes a gaming console looses money on the console itself. They make up the different on the games, accessories, licenses to other companies to make accessories, etc. It's an educated risk that these companies take every time. A big deal is made with each console that comes out. The profit on the games is a lot higher than people realize. (Back in college I actually did a project on the video game industry for a finance class - absolutely insane!)

[hippietim]

Not true. Nintendo has been making a profit on their consoles from day 1. From what I understand it wasn't until the last round of price wars when the GameCube went to $99 that Nintendo started losing money on the consoles and it was still less than 10 bucks. They are apparently breaking even on the Wii.

[rjohnstone]

Microsoft also is making money on the XBox 360 now.
They have their suppliers in order and they now make about $75 on each one.

[OnlineStageGear]

Thier intial cost per unit in the first year may also be taking in account R&D.

[fett]

fucking inadamant

The dudes that held up those poor people were very "adamant". The PS3 uses Blu-Ray. The jury is still out. http://www.engadget.com/2005/09/19/b...on-s-division/.

[hippietim]

Thier intial cost per unit in the first year may also be taking in account R&D.

That's not typically factored in at this level. When they say they are losing money on the box they literally mean that they are losing money just on COGs alone.

If you consider R&D costs, the PS/2 didn't start making money until about 1-2 years ago - they spent an enormous amount of money on that thing.

[slayer32390]

it's a fucking inadamant object

I think you mean "inanimate", as in not alive

[rjohnstone]

Here's a link to the article I found on Money.

http://blogs.business2.com/utilitybelt/2006/11/sonys_loss_is_a.html

Interesting read.

[VulfgangPfuck]

The dudes that held up those poor people were very "adamant". The PS3 uses Blu-Ray. The jury is still out. http://www.engadget.com/2005/09/19/b...on-s-division/.

OK...I got everything but "12-inch vinyl single vs. an Elvis Costello full-length album"

That one lost me.

As for Blu-Ray....according to that report, the only thing gained with BluRay is more storage. Big friggin' whoop-dee-do-dah!
Still doesn't excuse people from acting like friggin' raging neandrathals over a *still* inanimant object.


*thanks for that correction BTW Slayer!*

[slayer32390]

no problem Vulf since we are on the topic here my sister just scored a wii off ebay for $349 shipped. its for her boyfriend for xmas so i wont be playing it