PlayStation 4 Costs Sony $381 To Build

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mysecondlife:
If what Sony says on taking loss for PS4 is true, they should really talk to those "analysts". Maybe they can figure something out to make it more profitable

As I said, systems have almost never made a profit - the money's in the software, not the hardware.

Really , none of you should find this surprising; it's pretty much standard.

FogHornG36:
ah, so when they lower the price for the first time, they will no longer be making any money.

Well, the price may also lower for Sony (to make each console).

IF consoles are being released with no margin going to the retailer, then digital distribution for consoles fail because there's no reason for retailers to stock a unit that makes them no money in game sales.

Which is the real reason XBone gave up on their digital only dreams.

They arent making any profit. The assembly costs is 381 dollar.
You must then add:
Storage Costs
Shipping Costs
Retailers Cut
Promotion prices
Indirect costs
Static costs
Research and developement costs
And in the end its probably costing them 600 dollars to sell one 400 dollar console and they are hoping they are going to make it back by holding a monopoly on games and taking their cut from every developer.

omega 616:
I assume it was also people like you saying that "current gen consoles are holding back gaming 'cos they are running on 8 year old hardware" ... they simply can't win.

Yeah they could start releasing top of the line gaming pc's packaged as consoles but people started shouting at Sony at the cost of the PS3.

Simple fact is most people wont even notice the difference between the resolutions, even in a side by side, which most people will never do in there homes.

Last-gen (yes, lets get used to that one, it was as hard to type for me as it will be for you) consoles was holding gaming back. In fact, current gen consoles already ARE holding gaming back thanks to their inability to run 1080p properly.
Heck, next year there will be a PHONE that is as powerful as this console.
And i think we have already been over the fallacy of "you cant see reslution dur durr"

Adam Jensen:

People keep saying that but it isn't true. There's more to the console hardware than which series of GPU it uses. It isn't outdated. The way the unified memory architecture within the PS4 works is quite novel and won't be available to PC gamers until 2014.

What people were saying is that last gen was outdated - it was true, it had a frigging 512 mb of ram to begin with.
What they are saying about current gen (yes time to get used to that.... ech) is that it is underpowered. and that is also true - the 16 cores of AMD monstrocity even if utilized with maximum efifcinecy (we already saw what hell it is to program for many slow cores before, developers wont be jumping on this) still get beat by a now quite old 4 core i5. Noone was expecting miracles with consoles, they were expecting them to be at least on part with mid-high range PCs though. I mean, in the past consoles were always up there with high-end PCs during the launch at least.

vxicepickxv:
Sony is losing money on these, probably. I say probably because of a few factors. First, no console is worth a profit margin of less than ten dollars. Second, labor is still a cost. Of course, Sony is buying these chips in bulk, and isn't paying full retail for any part at all. It might actually be close to profit neutral for Sony.

Sony definitely is loosing money. no matter how many units you ship the shipping, storage, static and research costs are going to be more than 18 dollars per unit. I mean technically i guess if they got magic gnomes working for them and they bought all those advertisements for a steal.

J Tyran:

The Wii U can do 1080p, in fact the Wii U probably has more games in native 1080p than either of them. The shiny games like Battlefield 4? Neither the Xbone or the PS4 can manage native 1080p for games like that.

Though if you look at WiiU games that do native 1080p youll soon realize that your grandads PC could do them in 1080p as they arent more complex than your average flash game nowadays.

mysecondlife:
If what Sony says on taking loss for PS4 is true, they should really talk to those "analysts". Maybe they can figure something out to make it more profitable

Yes, like making analysts account for other things than just raw assembly price (part of changing costs only).

DracoSuave:
IF consoles are being released with no margin going to the retailer, then digital distribution for consoles fail because there's no reason for retailers to stock a unit that makes them no money in game sales.

Which is the real reason XBone gave up on their digital only dreams.

which is why you see more consoles sold in places like WallMart than specialized retailers.

Pebkio:

JoJo:
Wait a minute, this article doesn't make sense. It assumes that retail price - manufacturing costs = profit for Sony. That would be true... if the stores selling the PS4 didn't take a cut of the profit, which is about as likely as pigs flying. Factor in the cost of shipping and advertising too, and it's more likely that the profit for Sony is minimal at best, if not negative. Of course, the extras and game sales are where the real cash is.

Edit: Rats, ninja'd by Covarr whilst I was writing this!

Actually, I talked to some stores just before launch (not intentionally, it just happened) and they said they'll be making a good $10 profit on each PS4 sold.

---

Back to the article... it seems lacking. The numbers aren't really there. That $381 is for parts and assembly only. But, it's still not too far off. And I have to say... HA! You guys are getting what you paid for. Console buyers constantly demand cheap hardware so now this stuff is being built with older tech to keep the costs down.

Okay okay, I don't actually see anything wrong with this. Consoles are dedicated computers (I guess not so much anymore) and is way more efficient with it's resources than a PC (or Mac) so it doesn't need the same kind of specs a gaming PC does. Console buyers should be okay with lesser stats because they get a good run from the hardware.

Except for the video card, obviously. Wait... HA! You get what paid for.

I knew that it wasn't shiny as it seemed.Thanks for explanation.

Strazdas:

Last-gen (yes, lets get used to that one, it was as hard to type for me as it will be for you) consoles was holding gaming back. In fact, current gen consoles already ARE holding gaming back thanks to their inability to run 1080p properly.
Heck, next year there will be a PHONE that is as powerful as this console.
And i think we have already been over the fallacy of "you cant see reslution dur durr"

But what do you want? Them to charge a couple of grand for a PC like console that can't be upgraded? Who is going to buy that? You want super powerful machine capable of running at great resolutions and at 100+ FPS but it to cost $400, it's just not going to happen.

People who buy consoles aren't really into making the most of the games, as long as it is the shiny shiny and runs ok it doesn't really matter. If you want the greatest and best from gamers you will buy a PC and fill it with top of the range parts that cost the same as the consoles by themselves, you will get mods for games and all that other fiddly crap.

Consoles serve one demographic of games and pc's serve another, which is why resolution doesn't matter ... the only reason a fuss is being kicked up over it, is 'cos PC guys are like "well they should be running that anyway" and console guys are saying "ps4 has a better resolution that xbone". Only the PC guys who actually give a rats ass about it can tell the differences.

I've been watching a lot of coverage of the new consoles and I've people say the same thing, that it's quite hard to tell the differences and even when you do, after an hour or so of gaming you stop thinking about it and it doesn't matter at all.

To be honest when I game on a pc the resolution doesn't bother me that much, as long as it doesn't look like total ass I will play it at whatever.

omega 616:

Strazdas:

Last-gen (yes, lets get used to that one, it was as hard to type for me as it will be for you) consoles was holding gaming back. In fact, current gen consoles already ARE holding gaming back thanks to their inability to run 1080p properly.
Heck, next year there will be a PHONE that is as powerful as this console.
And i think we have already been over the fallacy of "you cant see reslution dur durr"

But what do you want? Them to charge a couple of grand for a PC like console that can't be upgraded? Who is going to buy that? You want super powerful machine capable of running at great resolutions and at 100+ FPS but it to cost $400, it's just not going to happen.

People who buy consoles aren't really into making the most of the games, as long as it is the shiny shiny and runs ok it doesn't really matter. If you want the greatest and best from gamers you will buy a PC and fill it with top of the range parts that cost the same as the consoles by themselves, you will get mods for games and all that other fiddly crap.

Consoles serve one demographic of games and pc's serve another, which is why resolution doesn't matter ... the only reason a fuss is being kicked up over it, is 'cos PC guys are like "well they should be running that anyway" and console guys are saying "ps4 has a better resolution that xbone". Only the PC guys who actually give a rats ass about it can tell the differences.

I've been watching a lot of coverage of the new consoles and I've people say the same thing, that it's quite hard to tell the differences and even when you do, after an hour or so of gaming you stop thinking about it and it doesn't matter at all.

To be honest when I game on a pc the resolution doesn't bother me that much, as long as it doesn't look like total ass I will play it at whatever.

I'll play it even if it DOES look like ass. I LOVE YOU MINECRAFT!

Yeah, I have to agree with you there, I don't think resolutions really matter. We don't even think of it as 1080p, really. That's for restrictive televisions. We care about optimal gameplay, really, and we REALLY only care about what settings we can run it on for affirmation: "Well I can run it at full settings with no loss in framerate... check out my glorious package. *hip-thusting*"

That's why PC gamers are making a big deal of their resolutions right now... Xbone and PS4 fans are flinging poo at each other and we can't help but stick out heads in and scoff. "Pffft, 1080p? What a baby argument. You sad, pathetic, console scrubs. Check out our glorious packages *hip thrusting with the slam to the pelvis region with open palms*."

So if you'd only stop crying about your terrible graphics, we wouldn't say anything.

omega 616:

Strazdas:

Last-gen (yes, lets get used to that one, it was as hard to type for me as it will be for you) consoles was holding gaming back. In fact, current gen consoles already ARE holding gaming back thanks to their inability to run 1080p properly.
Heck, next year there will be a PHONE that is as powerful as this console.
And i think we have already been over the fallacy of "you cant see reslution dur durr"

But what do you want? Them to charge a couple of grand for a PC like console that can't be upgraded? Who is going to buy that? You want super powerful machine capable of running at great resolutions and at 100+ FPS but it to cost $400, it's just not going to happen.

People who buy consoles aren't really into making the most of the games, as long as it is the shiny shiny and runs ok it doesn't really matter. If you want the greatest and best from gamers you will buy a PC and fill it with top of the range parts that cost the same as the consoles by themselves, you will get mods for games and all that other fiddly crap.

Consoles serve one demographic of games and pc's serve another, which is why resolution doesn't matter ... the only reason a fuss is being kicked up over it, is 'cos PC guys are like "well they should be running that anyway" and console guys are saying "ps4 has a better resolution that xbone". Only the PC guys who actually give a rats ass about it can tell the differences.

I've been watching a lot of coverage of the new consoles and I've people say the same thing, that it's quite hard to tell the differences and even when you do, after an hour or so of gaming you stop thinking about it and it doesn't matter at all.

To be honest when I game on a pc the resolution doesn't bother me that much, as long as it doesn't look like total ass I will play it at whatever.

I want them to at least give service worth the money. You dont need couple grand for a PC to run 1080p You need closer to 600 dollars to spend on a PC that will run every current game on 1080p without problems. And thats consumer price, if we take mass production manufacturer price that 600dollars is probably closer to those same 400 dollars. There was a study that shown that PS4 ahrdware even at purchasers price cost 382 dollars, for mas production thats probably more like 300, they area already taknig a large cut on top for each consoel sold (granted, there are costs to be had they need to cover which is fair enough). you heavily overestimate the value of things your getting. The new consoles from a hearware perspective arent worth the money they are asking you for.

You seem to realize there is no middle ground. you dont have to be a PC building crazyperson to be a PC gamer. In fact thanks to the new consoles PCs are now cheaper option too! And you can get the same (and more) shinies.

Consoles USED TO serve one demogrpahic of games. Now all they are are overpriced limited underpowered PCs with locked hardware and software.

And you once again seem to have only one argument: i cant tell the difference therefore only idiots care. sorry, that doesnt work.

Resolution matters, and looking better is only a small part of benefits of reoslution.

Strazdas:
snip

My brother made me a computer, picked out and assembled them himself ... I have since put a new sound card, graphics card and ram into it and it comes in the ball park of £500 I've spent on it. My PC can't even play planetside 2 ... guess which console can ...

I'm not saying I have been the greatest parts shopper but I don't think I was awful and I am just one case, so that as you will.

Woah, woah, woah there sparky! "I cant tell the difference therefore only idiots care." I never said that, my opinion is "only people who give a massive crap care and even then after playing the game for a time they get over it" as nobody is sitting there 5 hours into a gaming session thinking "fucking resolution fucking sucks *mumble, grumble*"

M920CAIN:
Yeah, I don't believe it. They're paying small salaries to the factory workers, surely they're making about 299 dollars profit per console. Those executives they've got need huge loads of money to keep their life styles going.

I... What? Did you read the article? The peices to make the console cost money , no one cares about the small salaries workers.

omega 616:

Strazdas:
snip

My brother made me a computer, picked out and assembled them himself ... I have since put a new sound card, graphics card and ram into it and it comes in the ball park of £500 I've spent on it. My PC can't even play planetside 2 ... guess which console can ...

I'm not saying I have been the greatest parts shopper but I don't think I was awful and I am just one case, so that as you will.

Woah, woah, woah there sparky! "I cant tell the difference therefore only idiots care." I never said that, my opinion is "only people who give a massive crap care and even then after playing the game for a time they get over it" as nobody is sitting there 5 hours into a gaming session thinking "fucking resolution fucking sucks *mumble, grumble*"

As it happens i am looking to buy new PC soon so i follow te pricing closely. For equivalent in local currency to 500 GBP i could build a high end PC (think I5 4xxx, 660GTX, ect). It could most definatelly play Planetside. Heck, for that money i could buy a very decent pre-built PC so you dont even have the excuse of not having to build yourself. Im not sure whether it is bloted prices in britain or you making poor choices o you just buying hardware back when it was mroe expesive and its value degrading over time (that happesn very fst with computers), but there is a problem with your setup.

People get used to being tortured too, does not mean its good thing to do this. The fact is there is a difference and people can see it. Does that mean they will stop playing because of low resolution? perhaps. should a modenr amchine be able to run 1080p at least (for all games) - most definatelly. especially one that costs this much.

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