troublesome, kaveri will cost more than richland

[CurrentlyPissed]

They can fit 8 GB GDDR5 in the PS4 at $399, and then it still also contains APU, motherboard, Blu-ray drive, HDD, PSU, chassis, controller, and so on.

No, they can't new model consoles don't break even into the production/cost spectrum until 3-4 years ahead. They are sold at a loss and recouped with licensing.

 

[Erenhardt]

No, they can't new model consoles don't break even into the production/cost spectrum until 3-4 years ahead. They are sold at a loss and recouped with licensing.

From what I've read, PS4 is cheaper to make than its MSRP

 

[ShintaiDK]

From what I've read, PS4 is cheaper to make than its MSRP

Its profit margin is so low that its actually a loss. Shipping, RMA, advertising, R&D, software etc. The BOM only covers the pure hardware and if you pick it off the assembly line of the factory.

 

[Centauri]

It's a moot point. BoMs on last gen's consoles were 50%+ above the launch prices. It did take years to get those down. But both Microsoft and Sony have achieved BoMs for this generation that are below the retail pricing. However much money they're currently losing on actually moving and supporting the units will be negated in a matter of months as the BoM drops, rather than years.

 

[ShintaiDK]

It better be, Xbox360 and PS3 gave huge multibillion$ loses for both. Thats simply not viable.

 

[Vesku]

I bet Sony gets a bit better pricing on some of the components than IHS guessed. The multi-year outlook for some profit directly off of console sales looks pretty good for both consoles.

Heck, if they got just a bit of a discount on the DDR5 than IHS assumed there could be another $20-40 difference between BoM and retail price.