La time's with a suprise about the playstation 3..must read

[joeorc]

The company has sold the PS3 at a loss, primarily because of the cost of the blue lasers used in the movie player. The game division lost nearly $2 billion in its 2007 fiscal year, which ended March 31. But analysts said the price drop signaled that the company now had those costs under control.

"We think they're profitable now with the PS3," Doherty said. "We also think the Wii is profitable for Nintendo. But with the $1-billion charge to fix its consoles, Microsoft will need a telescope to see profitability."

Microsoft said last week that it intended to turn a profit in its current fiscal year, which began July 1.

http://www.latimes.com/business/la-f...la-home-center

maybe this has something to do with it..huh

Mar 15, 2007
Sharp readies blue laser for mass production
The lasers will not come cheap: the quoted sample price is ¥50,000 ($430). However, that price should drop once Sharp’s overall production of blue-violet lasers is scaled up to 250,000
units per month.
http://optics.org/cws/article/industry/27333

now SONY's cost per Diode:
once again look at the date:
April 23, 2007
STRENGTHENING BLUE-VIOLET DIODE PRODUCTION CAPACITY AND BUSINESS

Blue-violet laser diode for BD player
900 Yen ($8.00) per diode

"Sony can cut prices because the company has fixed production problems with a diode used in the PlayStation 3's Blu-ray disk player, said Tretton, who is based in Foster City, California. He declined to discuss costs for the console."

:fishsmack:

[coolwavepic]

Why is this an issue. I keep reading that it was a mistake for Sony to include a Blu-Ray player in the PS3 but aren't all games released in the Blu-Ray format as well???

[joeorc]

Originally Posted by coolwavepic

Why is this an issue. I keep reading that it was a mistake for Sony to include a Blu-Ray player in the PS3 but aren't all games released in the Blu-Ray format as well???

the diode was one of the most expensive parts in the playstation 3...what their saying is they guess that SONY has now broke even on the playstation 3 and is now profitable for SONY. by reduceing that DIODE cost it may very well be. thus they could indeed put sales pressure on Nintendo now.

[Frode]

Those Sharp diodes are for recording, not straight reading as is used in the PS3. iSupply estimated the PS3's optical drive at launch to cost $125, so with the diode cost dropping to $8 it should be equivalent to one of the normal cheap DVD drives + $8. It's belived that with the introduction of the 80GB model that Sony's dropping the Emotion chip from their design and going with software emulation of PS2/PS1 games like the Euro version of the console, which should further reduce costs.

[Maximus]

The PS3 is definitely profitable at $599, and in Europe where prices range from $750-900.

At $499, I expect Sony are making a small loss on each box, but not more than the amount of profit they make on each PS2/PSP sale, people forget that SCEI also has these two hugely successful products in their line-up to subsidise losses on the PS3. Sony knew that launching the PS3 was going to be expensive so keeping the PS2 around was a brilliant move, unlike MS who chucked the original Xbox like a fat kid and vegetables.

[BLu-Balls]

This means production at full steam, Blu-ray players will drop in price quicker than originally forecasted.

[JTK]

Once the PS3 actually starts seeing some compelling, big time games and exclusives show up...that's when the real fireworks begin.

[WickyWoo]

Sony still has to burn through about a million units still sitting in the warehouses though

[Maximus]

Originally Posted by WickyWoo

Sony still has to burn through about a million units still sitting in the warehouses though

These expenses are already on the books as the units have been produced, monies spent etc...

[The Don]

Originally Posted by Maxpower1987

The PS3 is definitely profitable at $599, and in Europe where prices range from $750-900.

At $499, I expect Sony are making a small loss on each box, but not more than the amount of profit they make on each PS2/PSP sale, people forget that SCEI also has these two hugely successful products in their line-up to subsidise losses on the PS3. Sony knew that launching the PS3 was going to be expensive so keeping the PS2 around was a brilliant move, unlike MS who chucked the original Xbox like a fat kid and vegetables.

actually they lose money on the PS3 at 599...or were for the most part...

they may not be losing money anymore, but they probably still are..

[joeorc]

Originally Posted by Frode

Those Sharp diodes are for recording, not straight reading as is used in the PS3. iSupply estimated the PS3's optical drive at launch to cost $125, so with the diode cost dropping to $8 it should be equivalent to one of the normal cheap DVD drives + $8. It's belived that with the introduction of the 80GB model that Sony's dropping the Emotion chip from their design and going with software emulation of PS2/PS1 games like the Euro version of the console, which should further reduce costs.

yea i know its even at the cost of blue laser diodes for burners for sony they are still way cheaper than sharps. and thats my poit if since march it cost Sharp that much for a burner what would it cost for a reader laser. alot more than ($8.00) i am sure of it.

[reiella]

*cough*choke*
The Blue diode is down to 8$/unit already?

Damn, they dropped that cost fast...