Sony making a profit on the sale of the UK PS3?

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We all know that consoles historically lose money on the hardware for the first few years and the companies then make the money back from software sales.

Noxibox made a comment over at the MyADSL.co.za forums about whether or not Sony is making a profit on European PS3’s. Now I don’t have enough info to check all of Europe so I went straight to the UK price lists and worked from there. As we know they are the most expensive.

According to a report on Engadget.com in November last year Sony was losing $241.35 on every premium edition PS3 sold in the US. The premium edition is the only one that is available in the UK and here if you remember.

The Premium costs £425 in the UK which at the current exchange rate of 1.97 to the $ works out to $837.25.

The Premium sells for $599 in the states so add to that the $241.35 loss and you get $840.35…. So no Sony are still making a $3.10 loss.

But wait, didn’t Sony removed the Emotion Engine chip from the PAL release? According to Sony this was done to save costs, I have no idea how much they saved but you can bet your house on the fact that it saved them more than $3.

So while Sony loses money hand over fist for every unit sold in Japan or the US, they are making it back with a ludicrous mark up in the UK.

We should count our lucky stars that we don’t live in the UK and are not getting ripped off like that. Ours only costs us R6199 and with the current exchange rate being R7.27 to the dollar that works out to only be $852.68.

um that would be $15 more than the UK version?

Last Updated: April 2, 2007

Gavin Mannion

I for one welcome our future robotic overlords

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