Bluray player price vs ps3

[partridge]

The stand alone players are sold at cost/profit, meaning the price you pay covers the cost of making it plus a bit on top for the company.

Sony will sell the PS3 at a loss, meaning it costs a lot more to manufacture than the price they are selling it at. They are banking on making money on game and accessory sales to cover that loss, as well as money they may make with its online services and features, etc.

Over time the cost of making the console comes down and eventually, despite inevitable price drops, the console should move into profit. So it is a long term venture for Sony, what they lose initially they should get back over time assuming sales are good.

It worked for PS 1 & 2, both moved into profit due to the huge numbers sold, despite also being sold at a loss when they came out.