How can Sony further cost reduce the entry-level PS3? *spawn

If that holds any truth then it's absolutely crazy to think a publicly owned company would be insane enough to take that kind of pounding on the launch of a games console alone.

BD must have really meant alot to Sony... likely still does...
 
Prophecy2k said:
In three years?!?! Frankly that's incredible :D
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Not really, consider how much DVD drive prices dropped in a span of 3 years (went from over 600 USD to 100 USD or less). BRD drives are following a similar though slower trajectory.

I wouldn't be entirely surprised if the BRD drive contributed 500-600 USD of the original PS3 cost especially with the shortages of the crystals at the time PS3 launched.

Regards,
SB
 
Ps3's are sold to gamestop for $250 . xbox elites are at $170 and arcades are at $80.

Anyway as for price reduction also don't forget that cell on 90nm had its own problems. They disabled 1 core for better yields. I now believe they have hit 45nm for the cell cpu in the ps3 slim. So costs alone at that point going from a large power hungry chip with low yields to a small chip on a much better process is a huge cost cutting .
 
eastmen said:
Gamestop buys systems from sony. I'm just telling you the prices they pay for them currently.
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It was the Microsoft prices that seemed really low to me. Are you saying that Gamestop makes over 100$ for each Xbox sold? That doesn't sound right to me. Why would the Gamestop cut be so much bigger when selling Xboxes.

edit: and the Arcade 80 ->199$ sounds absurd.
 
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Please don't post unqualified links. As it is, all non-subscribers read is Sony has posted a profitable quarter, which doesn't warrant a click on a link.
 
eastmen said:
Ps3's are sold to gamestop for $250 . xbox elites are at $170 and arcades are at $80.

Anyway as for price reduction also don't forget that cell on 90nm had its own problems. They disabled 1 core for better yields. I now believe they have hit 45nm for the cell cpu in the ps3 slim. So costs alone at that point going from a large power hungry chip with low yields to a small chip on a much better process is a huge cost cutting .
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US retailer margins on console hardware are usually 1-3%. UK/EU margins are slightly higher at 4-5%. Nothing like the more than 100% you're quoting on the Arcade.

Gamestop themselves say there is little to be made for them selling hardware, and the only reason they stock it is so people buy the games (used ones preferably) when they buy the console. I remember some higher up at GAME saying he would stop selling console hardware all together if it didn't bring in people to buy games as they take up too much space in the stock room.
 
NathansFortune said:
US retailer margins on console hardware are usually 1-3%. UK/EU margins are slightly higher at 4-5%. Nothing like the more than 100% you're quoting on the Arcade.

Gamestop themselves say there is little to be made for them selling hardware, and the only reason they stock it is so people buy the games (used ones preferably) when they buy the console. I remember some higher up at GAME saying he would stop selling console hardware all together if it didn't bring in people to buy games as they take up too much space in the stock room.
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I am sorry , IT should have been $270 for the elite and $180 for the arcade. Thats what happens when you post past midnight after having your eyes dialated .

As for how I know this. I know a few lower level Gamestop guys at HQs . I also know what a local non chain store pays for systems and they are within $10 of what gamestop pays. Gamestop getting the better end of the deal.

Gamestop feels there is no money to be made for more factors than just the mark up. When you look at its mark up for the foot print in one of its stores you can see that you also loose money on what your not able to stock. For every console you can most likely stock 50 or so copies of a game. If those 50 copies are used games gamestop can make $15 or so per copy depending on the game. Even at $5 its a much better income than a console making them $20-30 per sale.
 
Another cost reduction they could apply to PS3 (and also the 360) is to only have HDMI output, and include the HDMI cable. No more need to do DAC on the console and one less output port would save some money. For the people living in the stone age, they can sell an adapter that converts HDMI to analog for extra cost.
 
corduroygt said:
Another cost reduction they could apply to PS3 (and also the 360) is to only have HDMI output, and include the HDMI cable. No more need to do DAC on the console and one less output port would save some money. For the people living in the stone age, they can sell an adapter that converts HDMI to analog for extra cost.
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They can even make it proprietary and sell it for $50. But how much cost would they actually save? Would it be worth it over the (remaining) lifetime of the console?
 
corduroygt said:
Another cost reduction they could apply to PS3 (and also the 360) is to only have HDMI output, and include the HDMI cable. No more need to do DAC on the console and one less output port would save some money. For the people living in the stone age, they can sell an adapter that converts HDMI to analog for extra cost.
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This would mean you couldnt use a Monitor through DVI either... atleast not with sound. (My Samsung has an HDMI Port but HDCP is only supported on DVI :rolleyes:)
 
Npl said:
This would mean you couldnt use a Monitor through DVI either... atleast not with sound. (My Samsung has an HDMI Port but HDCP is only supported on DVI :rolleyes:)
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The optical out is still there for sound. There would also be analog outs on the accessory hdmi to composite/component adapter along with a hdmi passthru.
 
The DAC is on the GPU AFAIK, and the cost of the connector is minor; late-gen sales of cheaper consoles go exactly to the type of nations and households that might not have HDMI.
 
corduroygt said:
Another cost reduction they could apply to PS3 (and also the 360) is to only have HDMI output, and include the HDMI cable. No more need to do DAC on the console and one less output port would save some money. For the people living in the stone age, they can sell an adapter that converts HDMI to analog for extra cost.
Click to expand...
I think they'd quickly run afoul HDCP and/or DVD license limitations (i.e. no HD over analog and so on) with that approach. At least without making the adapter so costly and convoluted that the whole exercise is pointless in the first place. Analog outputs will go away eventually, but not by next gen.
 
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