Daily Archives: February 5, 2007

Here is the deal we all know that Sony’s new console PS3 is making a loss of $200 on every console its selling. You might say every console is loss making product, but the difference is, Sony is losing as much money as other consoles would cost. So that’s hard to make up. Here is how I came to the above conclusion of 20 games and accessories.

A PS3 games cost $60 and if we can imagine a profit of 15% on every games which is a bit high percentage wise, still Sony only makes about $9 every game you buy. So it would take 20 games and few accessories for sony to just get even on the console they sold you. So it will only make profit after you buy the 21st game.

In my experience 20 would be the actual number of games i would buy for a console. I have a PS2 and i have around 17 games so far. How many games do you think you will buy.

You might say they will get all the money on the games they make but here is the thing, for the games they make they have to spend on advertising, paying for the actually making process etc. So even on the games they make i think they will not make more money than $25 or more.

Then how about blue ray movies, since they are making them too it will be similar to the games they make after advertising and other expenses. Not many movies are shot in high def so they need to make new movies and only then they can sell them.

You can adjust the number of games according to the percentage they make on each game.

if they make 15% its will be 22 games, if its 20% its 16 games and if its 25% it will be 13 games.

So remember that’s how many games you have to buy if you have a PS3 for sony to make even not profit.

Don’t write to me saying it will make more in years to come, if you read the stories days back before the PS3 sony borrowed all this money from banks and as years go past the interest on the money will also get more and more. So it will not help if they make more by then or if the lose less money on each console.

That’s why Microsoft is in such a good position they have a huge cash reserve and in consoles its always throw the money first and get the money in return later. Which microsoft could do well years to come.

Unless you decide to buy 30 games for your PS3.