iSuppli confirms that Sony is losing big time on Playstation 3 sales

iSuppli confirms that Sony is losing big time on Playstation 3 sales

Research company iSuppli has taken apart the recently launched Sony Playstation 3 gaming console and has said that the manufacturer of the console Sony is indeed losing a lot on each unit sold in the market.

The company added that the consumer is getting something providing them “supercomputing performance” at the price of a cheap PC.

However, it is a known fact that most gaming console manufacturers sell their products at a loss hoping to recover the money and profit from sales of gaming media.

Nevertheless, as per iSuppli, Sony is losing an unusual amount of money on each of the PS3 sold in the market. The research group said that the combined materials and manufacturing costs for each device come to US$805.85 for the model with a 20GB hard drive. This price excludes the cost of the controller, cables and packaging. Of course, they also could not count any marketing costs in this figure.

This console would be sold at $499 in the market. This means that the company is taking a loss of at least $306.85 on each console it sells. This figure is somewhat smaller for the higher end model of the Playstation 3 where Sony is expected to be losing around $241.35 on each unit sold in the market.

However, one thing is crucial in this game for Sony. If they manage to popularize the Blu-Ray technology in the market through the Playstation 3 gaming console… they are in for a treat in the longer run.