(adsbygoogle = window.adsbygoogle || []).push({}); Hey ngu whats up? Well all you guys should know the company Microsoft and sony! Are you paying more then you should?

Well i made this thread to inform you on some stuff about these company's.

Normal xbox's or slims cost around $250. To make a xbox is costs less then $10 i heard. so they are making around $200 dollar profit if you think about it

How it works?
well there is always a "china" eh?
they buy bulk millions of parts from china for really cheap and build it in america. Really all they need is plastic and medal. Same with sony same thing.

Whole point of this thread.
i made this thread to inform you on how much it really costs to produce an xbox/ps3.

Thank to everyone who took the time to read this thread so not flame me thanks.

Remember i saw this on the internet and if you really think about it is true THANK YOU!!

Buying in bulk will only work to a certain extent. People have to be paid for their work, Nobodies going to work for nothing just because you decided to buy in huge quantities. Also not every raw material is available in china and these Chinese slaves ye keep talking about aren't educated enough to be able to make sophisticated machines. I know some of the Intel processors are made here in Ireland, Intel employs 1000+ people here, are minimum wage was, up until last week 8.37 euro an hour. You think Intel can manufacture and sell each processor for a few cent and still be able to pay it's employees? Honestly get real. Yes it's true we do get ripped off on a lot (not all) of the things we buy (generally services), but not to the extent your talking about honestly if best buy and wall mart were making a $340 profit on ever PS3 sold they would be better off moving to a smaller premises hiring fewer employees and just sell PS3s .

Wow are you serious! You have a weekend job! Your amazingly mature you must be right about this [/Sarcasm] I bet you don't have to pay for rent, electricity, water, etc. You also probably get money of your parents when you want it. When I was saying that I was making a generalization about 90% of this forum, but after reading what you just posted I can guarantee you have no sense of value of money and no business sense. Don't even bother replying till you have started 'Real' work and have a basic understanding of how the world works, or else you'll just embarrass yourself more than you already have.

Ermmm are all of you really not getting this? Yes it costs a lot of money when you first start out to make your idea into reality. And right away it will cost a bit to make the machines necessary to. BUT once they do that, it it costs next to nothing to make A UNIT. They mass produce them for cheap once they have a system established. And yes...I know it's most likely not going to cost 5$ it might maybe be at the maximum 20$ even, but I was making a general statement on the cost as an illustration. Not all the material for the PS3's comes from China, and most of the work is done by machines to make the parts. You guys are confused thinking that Sony doesn't make a profit because of how much it costs to make each console, but really where they weren't making one right away was because of how much it cost to actually put together the idea into a real thing. The reason Sony wasn't making a profit on each Ps3 right away was because they hadn't yet earned how much it had cost to mainstream it. After they sold enough they began to earn more than what it cost to mainstream it and they began to make profits. The cost to make it never changed, the only difference is that they earned past what it cost originally to start the project. And oh yeah, me working for over four years is not really work? Along with working around 50 hours a week during the summer? Yeah f*cking right dude. So yeah go ahead trying to make an argument saying somehow I don't know what I'm talking about, and I'm some dumb ass 17 year old obviously having my parents buy everything for me. All I want to know is what kind of weird world do you live in where everything you hear you believe, and nothing is corrupt?

1) You seriously can't believe it only makes $10 to make a Ps3/360. This is just one of the few things it has in it:
CPUowerPC-base Core @3.2GHz - The cheapest I could find on something like that was around $50. (You must login or register to view this content.)

2) It might cost around $10 of labor, because the average industrial worker in china gets paid $14 A DAY.

3) It's Sony / Microsoft. You are going to pay for the brand name also. Usually, that is how it always it.

4) The PS3 and 360 are reasonably priced for what you are buying. There is really nothing to think about when you buy it.

5) Come on, the damn shipping from china or where ever it's made is more than $10.

6) Companies make all their money on accessories.

This is very true man, but grimsley33 is saying that after they pay everything the MASS produce costs really cheap to do.

1) yes I do, for the cost of one out of many being mass produced. And everything is cheaper when you buy in bulk, plus when you try to buy something companies mark their items up so your $50 processor argument is crap.
2) Hmmm yes that makes so much sense....10$ of labor goes into the making of a ps3 for a person supposedly making $14 a day. Think about it...they put together many more than just one ps3 each day so the cost of labor for ONE ps3 is a lot less.
3)true, and that goes along pretty much with what I've been saying about corporate greed.
4)Ummm reasonably priced? not really. Both of the systems control the market so they jack up their prices to ridiculous amounts, just because they can.
5)Yes, but they don't just ship over every ps3 one by one, so the cost is again spread out and costs maybe a couple cents if that.
6)I don't know about ALL of it off accessories, but a pretty large share of it.

Of course it cost a lot cheaper to make then what they sell them for. It's all about making money to them, they are both worth BILLIONS of dollars. They could make them even more expensive and people would still buy them...

He means that it costs $10 to assemble an Xbox or whatever. They make a loss because they have to design and build the technology. The Blu ray was developed by Sony. It would have cost millions to design, make and test. They make money in other areas, such as games. The company will pay like $1 million for maybe 1 million CPU's, thats a dollar each. To buy single could be about 10 dollar each. I visited a coke factory with school once. They said it costs 8p to make and distribute a can of Coca Cola. Yet in shops it costs 60/70p. Coke might sell them each for 10p to the shop and make 2p on each can. Say they sell 1 million cans a day, they make 2 million profit. Same with MS/Sony. Why do you think Pound shops can sell branded product for £1 where Tesco may sell them for £3 and the pound shop make a bigger profit on the product than Tesco?

By the fact you still don't know what I'm saying by real value of money you haven't done 'Real' work yet. Don't even bother replying to that statement because you will somehow manage to make yourself look stupider then you already have in this thread










Just to put this topic to rest, read You must login or register to view this content. The current price is $240 a unit when mass produced but this has come down significantly from $840. But then on top of that $240 you have to include shipping, customs duty and tax etc before it even gets to the shop. No I'm not naive, I do know we get ripped off on most things we buy, but not everything, You have to use some common sense, China isn't the solution to everything. Not all of the components used in the PS3 and Xbox are made in China and the Chinese smart enough to make Xboxs and PS3s would be earning the same (maybe a little less) than the average American. The cheap Highly uneducated Chinese only make the straight forward products.

I understand. Making products in bulk obviously reduces prices. The point is it cost more than $10 dollars to make. A lot more. My Processor argument is not crap, because that is ONE of the many other things in the damn console. Lets say they get it for maybe $5 (Highly un-realistic). You still have labor/ shipping / other parts / assembly. It is reasonably priced for what you are getting. How is it not? It's a lot of a better deal than a 360, considering that the 360's accessories are higher priced and you must pay for internet service.