November 20, 2006

DO THEY THINK THEY'RE AIRBUS?:

iSupply: PS3 Components Cost $850 (Wired, 11/17/06)

In the weeks since the PS3's worldwide launch, it's been opened up and smashed. Now it's being broken down into its component parts by iSuppli, a well-respected group of technology analysts. They've totaled up the cost of the PS3's parts and determined that the cost of each $600 box is $840. That means they're taking a bath on each 60GB console to the tune of $240 (and how's that for a mixed metaphor).

Posted by Orrin Judd at November 20, 2006 7:08 AM
Comments

Costs don't determine prices, Markets determine prices.

Posted by: Bruno at November 20, 2006 12:05 PM

Costs determine profits.

jp

Posted by: jefferson park at November 20, 2006 12:27 PM

Sorry, but isn't the money made off of the games themselves? The box is just to enable people to play the games. They should be giving the box away.

Similar to concert tickets. As scalpers often illustrate, major rock bands could be selling tickets at many times more what they actually charge. Concerts have always just been the advertisement that gets fans to shell out for the band's new cd.

Posted by: Jim in Chicago at November 20, 2006 3:54 PM
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