estimate: sony has to sell twice as many consoles to catch ms profit on xbox one

#1Troll_DirectoryPosted 11/23/2013 9:45:02 AM
i found an early estimate on materials. ps4 costs a little more than $330, and the xo is about $370. so, for every 1 million consoles sold, that would be $70 million for sony, and $130 million for ms. the extra assembly and marketing costs are probably similar. so if ms is only trying to match sony's profit, they have to sell about half as many as sony, if this is correct:

http://www.techinsights.com/ps4-vs-xboxone/
#2AarksharkPosted 11/23/2013 9:47:33 AM
Material Cost != Total Cost

It's been said numerous times that neither console makes a profit on a sale. The profit from consoles comes from licensed peripherals and games.
---
Gamertag/PSN ID/Steam: Navllyk
My FUNK is all that of JUSTICE! I will be the first to grab the napkin, you will be as docile as the winter catfish!
#3MCC1701Posted 11/23/2013 9:47:57 AM
Even if what you said was true, MS has been going crazy with their ad campaign which I'm sure more than offset the difference.
---
36: Ancient
Awarded to users with at least 2000 Karma.
#4Foxx3kPosted 11/23/2013 9:48:59 AM
Aarkshark posted...
Material Cost != Total Cost

It's been said numerous times that neither console makes a profit on a sale. The profit from consoles comes from licensed peripherals and games.


No, assembly and packaging is free because Foxconn is a non-profit.
---
[LanParty nF4 Ultra-D] [AMD64 3700+ San Diego] [2x 1gb Corsair XMS 3-3-3-8] [2x 250gb Barracuda] [Soundblaster Audigy 2 ZS] [X850XTPE]
#5DisgaeaNutPosted 11/23/2013 9:49:12 AM
At the same time it is likely that Sony will sell more consoles this generation, and the production cost will eventually get lower anyways.

So yeah, Sony will do just fine.
#6AarksharkPosted 11/23/2013 9:57:34 AM
Foxx3k posted...
Aarkshark posted...
Material Cost != Total Cost

It's been said numerous times that neither console makes a profit on a sale. The profit from consoles comes from licensed peripherals and games.


No, assembly and packaging is free because Foxconn is a non-profit.


Shipping? Advertising? Replacements? Repairs?
---
Gamertag/PSN ID/Steam: Navllyk
My FUNK is all that of JUSTICE! I will be the first to grab the napkin, you will be as docile as the winter catfish!
#7MetroidFan9999Posted 11/23/2013 9:59:20 AM
Ahhh, the "profit" arguments...I was waiting for them to show up soon after launch.
---
Xbox One = Xbone = Crossbone = Jolly Roger.
http://www.reactiongifs.com/wp-content/uploads/2011/09/mind_blown.gif
#8leatheljPosted 11/23/2013 10:02:48 AM
Aarkshark posted...
Foxx3k posted...
Aarkshark posted...
Material Cost != Total Cost

It's been said numerous times that neither console makes a profit on a sale. The profit from consoles comes from licensed peripherals and games.


No, assembly and packaging is free because Foxconn is a non-profit.


Shipping? Advertising? Replacements? Repairs?


lol me to. but honestly they both with sell fine what is with this profit war thing? do these people get paid by sony/microsoft. i mean is it some kinda of fanboy thing..i........i just don't get it?? there both multibillon dollar company (more so Microsoft) they will both be fine.
---
Every one has there own opinions unless theirs is stupid.
#9LICKWIDPAlNPosted 11/23/2013 10:05:19 AM
MetroidFan9999 posted...
Ahhh, the "profit" arguments...I was waiting for them to show up soon after launch.


Lol. I had my stop watch on for that argument.

The Xbot MS is moving g the goal posts.
---
PS4 /PS3 /Vita /2600K@4.7Ghz water cooled by Corsair H80, Dual GTX580s in SLi, 8 Gigs Corsair RAM, 120Hz screen. Vsync? I don't need no Vsync! PSN: Liquidpain
#10LICKWIDPAlNPosted 11/23/2013 10:06:09 AM
Xbot MO
---
PS4 /PS3 /Vita /2600K@4.7Ghz water cooled by Corsair H80, Dual GTX580s in SLi, 8 Gigs Corsair RAM, 120Hz screen. Vsync? I don't need no Vsync! PSN: Liquidpain