PlayStation 3: Now Creating Less Losses for Sony

Sunday, February 7th, 2010 at 7:13 am

It’s easy to assume that giant electronic-gadget manufacturers like Sony make a bundle of money with every gadget they sell, but did you know that Sony actually lost money when they started manufacturing PlayStation 3? If you’re a hardcore follower of PlayStation consoles then you probably know that the 3rd model of the popular consoles did appear to burn a hole through the pocket of every consumer. There was a time when it cost a whopping $500 at the very least. It’s weird to know that even in those days, Sony was actually losing about $37 for every PlayStation 3 console sold.

It’s not really a new practice among game console manufacturers. It’s common for a company to create a line of extremely expensive game consoles–so expensive that the average consumer is not likely to afford them. How do the manufacturers break even or manage to create profit? They do so by game sales.

It was reported that as of December 2009, Sony spent about $366 for every PS3 console manufactured. And each of these consoles was sold for a meager $299. Believe it or not, this is actually the good news for Sony since they were losing even more in the years before that. It was reported that the earlier generations of PS3 consoles cost Sony an enormous $49. It may not sound like a lot, but if you multiply it to the millions of consoles created, it’s apparent that Sony was losing quite a fortune. Fortunately, Sony has managed to cut down their losses by cutting back on manufacturing expenses.