Re:Senators introduce bipartisan antitrust bill to promote a...
by musicale on Saturday August 14, 2021 @10:50PM
(#28185879)
Sony recently confirmed that the $500 PS5 is no longer selling at a loss, thought the $400 PS5 Digital Edition still is.
I assume they are measuring it by component and manufacturing cost, and not counting amortized costs such as hardware and software R&D, digital infrastructure, marketing, etc., which are probably substantial.
The price shouldn't matter. If Apple sold it for $1, losing hundreds of dollars in raw materials per purchase, would you still say that? In both price scenarios, Apple expects pay on the back-end in the form of the 30% cut they take from app purchases and in-app purchases. It's the same with consoles - they're basically sold at a loss or very near-cost (eg. the $500 PS5 might have a per-unit COGS of $450) which, with R&D costs, isn't profitable on its own without backend revenue to recoup that loss, ie. from game sales or PSN/Xbox Live.