Well of course we don't know and have never known; all we can do is guess and use the information given to form a picture. But not using all the information given - for instance a lot that comes out of non-official sources is inferred noise and does more harm than good in our understanding, the original iSuppli teardown being probably the most notable offender. The point primarily though is to stop using a regional sales currency like the dollar as the basis for which we judge exchange rates and costs/prices in places like Europe, probably the most common and egregious example of muddying the waters.
Rumor: Slim PS3 on the way?
- Thread starter DieH@rd
- Start date
- Status
Well of course we don't know and have never known; all we can do is guess and use the information given to form a picture. But not using all the information given - for instance a lot that comes out of non-official sources is inferred noise and does more harm than good in our understanding, the original iSuppli teardown being probably the most notable offender. The point primarily though is to stop using a regional sales currency like the dollar as the basis for which we judge exchange rates and costs/prices in places like Europe, probably the most common and egregious example of muddying the waters.
Email her Maj, I'm sure she could send the navy out to conquer all again.As the Yen gets stronger, for each dollar Sony gets in America it's worth less Yen to them in Japan. If we went back to the good old days of the Empire with the whole world using pounds, shillings and pence, we wouldn't have these complications!
Some are saying it was 98,000 yen, meaning that the equivalent 70% dollar price is $308 today.
NOT $240.
I could see them cut to $300 with this though...take a slight hit for the moment and hopefully pan it out. The equivalent cost price in the UK is £186, meaning they could drop to £200 (which they're basically already doing with deals and bundles anyway.)
NOT $240.
I could see them cut to $300 with this though...take a slight hit for the moment and hopefully pan it out. The equivalent cost price in the UK is £186, meaning they could drop to £200 (which they're basically already doing with deals and bundles anyway.)
Last edited by a moderator:
We could try and parse Stringer's recent comments when he said that he still lost money on each PS3 sold -- assuming the 50% price cut rumor was legit. Of course, we don't know if they lost money across all regions -- there's a huge variation in relation to the Yen, too.
From today's exchange rates:
299GBP~=47kJPY
399EUR~=54kJPY
399USD~=38kJPY
Price at Bic Camera: ~40kJPY
Maybe, maaaaybe we can get some sort of minimum ceiling from all this. A ton of ifs involved, though.
From today's exchange rates:
299GBP~=47kJPY
399EUR~=54kJPY
399USD~=38kJPY
Price at Bic Camera: ~40kJPY
Maybe, maaaaybe we can get some sort of minimum ceiling from all this. A ton of ifs involved, though.
@Deepbrown: What are you referring to in terms of that yen figure vs that dollar figure?
Remember that the Euro prices include VAT, which exists completely outside the realm of Sony's take-home on the sale.
So the UK yield is more like 255GBP~=40kJPY and the Euro yield may be more like 330EUR~=45kJPY.
obonicus said:
Remember that the Euro prices include VAT, which exists completely outside the realm of Sony's take-home on the sale.
So the UK yield is more like 255GBP~=40kJPY and the Euro yield may be more like 330EUR~=45kJPY.
If the original cost price was 98,000 - that's the equivalent to just over $1000 at today's exchange rate. Minus 70 per cent off that and you're at $308 current cost.
Ah, ok well I understand the statement now, but I'm not sure I'm feeling a seemingly arbitrary 98,000 Yen original cost to the system. Not saying it's right or wrong, but that this figure (so far as I can tell) comes from thin air, and should it be some yen-centric reverse engineering of the old iSuppli figures brought up to current exchange rates... well that would be very 'bleh.'
It's the same source as your other link.
I have a feeling they are talking about 2 different costs. The latest one mentioned the "manufacturing cost" but the old one may be total cost (e.g., Free PSN network, cost of sales, currency and other overhead).
Anyway, I now see that BR is in the other division. PS3 helped to win the HDM war and build up BR base. Would be nice if Sony can summarize the overall impact of PS3 some day.
More like £260 pounds, because the Government in their Infinite Wisdom droped VAT to 15% to spur on commerce.
I imagine a £200 PS3 would sell very well, but I wouldn't be surprised to see it drop to £250. £220 might be a comfortable mid-ground, eeking a little more from shoppers happy to see a price cut.
Right, I had completely forgotten. Makes the Euro price seem less crazy. 98kJPY does seem in the right ballpark for that theory, too.
More like £260 pounds, because the Government in their Infinite Wisdom droped VAT to 15% to spur on commerce.
I imagine a £200 PS3 would sell very well, but I wouldn't be surprised to see it drop to £250. £220 might be a comfortable mid-ground, eeking a little more from shoppers happy to see a price cut.
I thought the rule of thumb for GBP prices was to get the USD price and decrement the most significant digit by one. The pitfalls of your crazy non-decimal currency.
Lol. Actually it's from the Meryl Lynch original estimation - which was between $800 and $900.
I went for the middle at $850 and used the original exchange rate in 2006 (all with help from a neogaf member) which comes to 98,000 yen.
More like £260 pounds, because the Government in their Infinite Wisdom droped VAT to 15% to spur on commerce.
I imagine a £200 PS3 would sell very well, but I wouldn't be surprised to see it drop to £250. £220 might be a comfortable mid-ground, eeking a little more from shoppers happy to see a price cut.
It's already been selling for £200.
The average is around £280 and that comes with two games and a blu-ray!
Ah ok, gotcha. Well I wouldn't take those numbers as any better that's for sure, but not that any numbers would be good. IMO it is seriously pointless to try and divine the original system cost; the best we can hope to do is get a sense of the present gulf in costs vs break-even.
Well it was around that...if not less. I doubt it'd be more than 900. We need to do something with this 70% otherwise it's staring at us!
Id say the cost is around $300 now.
For me the 70% thing is one of the more vague statements in and of itself. I listened to both conference calls this morning, and when they did mention the 70%, it was almost as a tangential side conversation. "Would you say around 70%?," "Uh sure" was the feeling of it, and with Oneida you never know whether he's speaking about something specific like IC's or the overall costs or what. So it was great to have a figure no doubt, but that figure still exists in a general void.
Separate from that, if it costs $300 then it costs $300, but it wouldn't seem to jive with the 'spirit' of the 10% cost overrun comment. Granted, that in and of itself is a comment I could not locate on the calls, so... I've got to go on faith there in terms of Japanese language sources.
Separate from that, if it costs $300 then it costs $300, but it wouldn't seem to jive with the 'spirit' of the 10% cost overrun comment. Granted, that in and of itself is a comment I could not locate on the calls, so... I've got to go on faith there in terms of Japanese language sources.
Where?! Typically it's list price is around £280, with one game, from what I'm seeing on the internet. I've never seen £200 for a new boxed PS3.
Edit : Note I'm talking UK response to a UK price. Don't confuse regional pricing and response with worldwide. PS3 may be £200 equivalent in the US with big bundles, but over there regional pricing is as high as over here.
Dude WHSmith...and it was on Play.com too for a while. HMV did the £280 for two games, Blu-ray and remote.
- Status
