Are Sony ripping off customers?

It would look like the cost of production of the PS3 is far less than the selling price, I smell a price drop soon.

http://www.reghardware.co.uk/2008/01/15/ps3_component_costs_halved/

I' m expecting a price cut to co-incide with the launch of GTA IV.

I' m expecting a price cut to co-incide with the launch of GTA IV.

That would make plenty of sense to me. GTA IV theme PS3 anyone?

BTW I don' t think the themed one will be reduced, but that the regular will drop in price, maybe?

I' m expecting a price cut to co-incide with the launch of GTA IV.

Im thinking it will happen for both consoles.

I dont want to celebrate, I want to sell you hate.

I agree with danmx. I think a price cut for both this year might be inevitable.

SCEI is still projecting a 1.4 billion dollar loss for this fiscal year. So no, I don' t think they are ripping us off. Nintendo on the other hand...

http://www.dailytech.com/PlayStation+3+Now+Costs+Sony+400+to+Manufacture/article10316.htm

Well, considering Nintendo makes a profit with each console sold, it obviously means it takes them less than 250 bucks to make em. In any case, isn' t this what companies do anyway? Sell their products a little higher than manufacturing costs so they can make an income with sales?

In any case, isn' t this what companies do anyway? Sell their products a little higher than manufacturing costs so they can make an income with sales?

In most cases yes, but in the console industry no. They sell the console at a loss and recoup cost on royalties of games sold. Thats why for companies like MS and Sony 3rd party games sells are important, which is why you' ll see MS and Sony going out of their way to support and promote 3rd party games, something Nintendo doesnt do.

I dont want to celebrate, I want to sell you hate.

In most cases yes, but in the console industry no. They sell the console at a loss and recoup cost on royalties of games sold. Thats why for companies like MS and Sony 3rd party games sells are important, which is why you' ll see MS and Sony going out of their way to support and promote 3rd party games, something Nintendo doesnt do.

Yeah, I forgot all about that.

Are Sony ripping off customers?

If you consider wanting to make a profitable business ripping people off, then yes. Microsoft has had their manufacturing cost per box below what they sell it for a long time now. Nintendo has been that way from the start.

The production cost of the Wii is also far less than the selling price. Why isn' t there a thread about Nintendo ripping everyone off and raping them in the ass without lube?

Answer: Because there is nothing wrong with making a profit.

I' d be astounded if all three consoles don' t receive a price drop in some fashion, a more substantial one from Sony and Microsoft $30-50, and a small Wii price drop, down somewhere in the range of $225, if only for the marketing blitz they' ll be able to pull off when they say they' ve slashed the price on a unit already selling like hotcakes. (" Who cares if it' s only $25!" )

If you consider wanting to make a profitable business ripping people off, then yes. Microsoft has had their manufacturing cost per box below what they sell it for a long time now. Nintendo has been that way from the start.

Microsoft' s manufacturing costs are down, yes, but they' re also spending a billion dollars on repairing the damn things.

That would make plenty of sense to me. GTA IV theme PS3 anyone?

I' ve gotta disagree there. I can' t see them making a Limited Edition Playstation 3 based on a multiplatform title. It just doesn' t make much sense.

I don' t expect them to do one at all, but if they did I' d look for a Killzone 2 themed box before GTA IV.

I' m wondering if Nintendo will be gutsy enough to not do any price drop at all if Sony and M$ do. I don' t think Wii buyers are looking at the 360 and the PS3 and comparing prices in order to decide which console to get.

True, they' re looking for something grandma can play.

It won' t be to compete. They' ll hope to make up what they lost in a $25 unit-price reduction in increased sales, where the marketing blitz comes in. Look at the PS3 and PSP. They' ve both sold extraordinarily well after price drops, and while I can' t say one way or the other, as I don' t have numbers on hand, it would be a logical assumption that it was a good business move for Sony.

Sony will drop $100. Nothing less.

They know that the sooner they get to $299 the better.

A PS3 for 299 is a steal and there is no excuse not to buy one. Heck, it is a steal as it is right now.

A steal? I disagree.

Is it a worthy investment, yeah, but I don' t feel like I' m getting an excessively good deal for what I' m paying.

Whichever way you cut it, $400 is still $400. Whether that' s down from $600 or $500 doesn' t matter much to me.

Maybe I' m just cheap.

Maybe I' m just cheap.

Perhaps. But is all a matter of opinion though. In my case, I' ll rather pay 400 for a PS3, than 400 for a 360. Hardware reliability issues aside, in order to get the most out of your 360, you end up paying more than a PS3.

And for all it does, I think the PS3 is actually cheap. Look at the price of a regular blu-ray player as to opposed to the PS3, which as a player, is just as good as most models priced 500 and above. Heck, there are even phones more expensive than a PS3, and those sell like hot-cakes!

But what if it happens to be made by a company that presses you into buying their HDTVs by not supporting VGA monitors... thereby making any HD movie advantages the console has for this particular individual irrelevant?

Edit: 5000 posts, hell yeah!

But what if it happens to be made by a company that presses you into buying their HDTVs by not supporting VGA monitors... thereby making any HD movie advantages the console has for this particular individual irrelevant?

Like I said, is all a matter of opinion. I for one, cannot make use of the HD capabilities of either my PS3 or 360, as I have a kicka$$ RCA TV from the 90' s. However, you would still need to buy either a VGA (which PS3 doesn' t support, unless said monitor is Hdmi) or and HDTV to make use of said qualities. And both cost money. In the end, depending on what kind of equipment you go with to make full use of either console, there still gonna be a ton of money involved and I think the best inversion varies by individual, like you said.

By the way, congrats on your 5000 . I' ll be at 500... someday