Launch Recap

The Wii sold roughly 650K units at launch, compared with about half that number of PS3s. However, with the PS3 losing money with each sale, Sony is probably content with that number. In fact, they lowered the number of PS3s, in my opinion, to lower their initial financial outlay and still create a feeling of selling out.

XBox 360, as a converse, is finally making about $75 per console (their initial loss per console was $75), now that they have reduced production costs. Surely, since the frantic pace they were asking for fulfillment has been slowed down dramatically, the relaxed fulfillment is at least partially responsible for that lowered costing per unit.

While I am sure the costing can be eventually lowered for the PS3, I doubt they’ll be able to sustain continued per unit losses, so even when the price to manufacture becomes cheaper, I am not expecting to see a price decrease. However, Sony rarely does anything that doesn’t surprise me, so certainly I could be wrong here.

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