Sony Finally Turning a Profit On PS3s

When the PS3 launched in 2006, estimates pegged the price of producing the consoles to be as much as $250 more than the price at which they were sold. Production costs have dropped since then, but there have been several price cuts as well. Now, almost four years later, Sony Worldwide Studios president Shuhei Yoshida says they're finally turning a profit on the hardware. "This year is the first time that we are able to cover the cost of the PlayStation 3,' Yoshida said. 'We aren't making huge money from hardware, but we aren't bleeding like we used to.' In May, Sony began shipping new PlayStation 3 consoles with smaller and more cost-effective graphics chips. Now, Yoshida said, Sony is looking at replenishing retail stock that has been running on empty since January rather than cutting the price. 'When we bring the cost of hardware down, we are looking at opportunities to adjust prices if we believe that will increase demand,' he explained. 'At the moment, we are trying to catch up our production.'"

Re:Why cut prices?

[Chris Mattern]

I think that it's a simple software feature that they removed once they saw that there was still demand for new PS2 consoles.

It wasn't software emulation at all at first, and it was never all software emulation. The very first PS3s actually had what amounted to a PS2 built into them (hardware compatible PS3s were never sold at all in Europe). Then they eliminated the most of that hardware and covered it up with software emulation (which resulted in the PS2 emulation breaking with some PS2 games). Then they eliminated the rest of it and told folks, "Want a PS2? Buy a PS2." PS3 models that were built to emulate PS2s still do; it's just Sony hasn't manufactured PS3s that do that for years now.

Re:Why cut prices?

[Narishma]

You can see the evidence if you open a PS3 with PS2 backwards compatibility, and one without and compare their motherboards (or go to a website that does that sort of thing). Then you'll see that the newer ones don't have the PS2 chips. PS2 emulation on PS3 always relied on PS2 hardware inside the PS3. At first it had both the CPU and GPU, then they removed the CPU and emulated it on the Cell processor but left the GPU in there. Finally they removed the GPU so it wasn't possible to run PS2 games anymore. I don't think the PS3 is powerful enough to emulate PS2 games at full speed in software.

Re:Why cut prices?

[tepples]

Some say it's an emulator, but considering how it requires downloading some kind of compatibility info for each game to your 360, I'm guessing it's a compatibility layer.

It's what the emulation scene calls a "high-level emulator". It emulates the user mode part of the game (which is x86 bytecode) and reimplements the "Windows XB" operating system (which is function names).

Casual?

[tepples]

Maybe they noticed the success of casual gaming (Wii mostly), and figured that better profits await if they can sell equipment to wider audience.

Or maybe they're gluing feathers onto their bodies and trying to fly. I wouldn't say "casual" is exactly the right word [50webs.com] for Nintendo's strategy.

Re:Why cut prices?

[222]

I recently disassembled a 60GB unit to repair a YLOD and can confirm that launch PS3 units have the Emotion Engine / PS2 CPU chip directly on board.

I'd also like to recommend to Slashdot readers the cheap PS3 route; I bought a YLOD 60GB unit (with a 320 GB drive in it) for $100 off Cragslist. Disassemble it, remove thermal compound from the RSX and Cell, and bake the motherboard in an oven at 425 for 12 minutes. I've done this twice, and gotten good results both times. I think I'm the best uncle ever; I gave this 60GB PS3 to my nephews since I already have one. I think taking a broken PS3 and fixing it in front of them is waaaaaaaaaaay cooler than just buying one at the store : )