30 Games for Hardware Cost Sony PS3
“According to reports circulating on the web, Sony needs to sell 30 games for every PS3 sold inorder to break even on hardware costs. Its being rumored that one PS3 unit cost Sony around US$760 to produce. And retailing in at $600 for the high end version in the US and around $750 in Europe when its released in March 2007, its obvious that the losses are less in the European market.
The Yen weakness against the Euro and the Pound may rescue Sony, says an article published by Financial Times. Taking the success of the PS2s in Europe, FT says that, the losses won’t be massive.
According to one Analyst, 30 games need to be sold per one PS3 to cover the loses. (Sony receives a royalty of $10 for each game sold.) The article also lists the prices of the major components used in PS3 which attribute to its hefty price tag.
In another report, Takeo Takasu, President of Namco Bandai, has said that the company must acheive sales of 5,00,000 units of every PS3 game to make a profit! The company released two games (Ridge Racer 7 and Gundam) so far and they seem to be doing good business.
Reading all this, its sure that Sony has a great battle to fight in 2007 and so do the game Developers. Lets wait and see whether Sony can really make profits on the PS3.
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