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Jan 22 2012
By: Logical_Dolphin PIayStation MVP 12905 posts
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Report: PlayStation Vita Components Cost $160

40 replies 691 views Edited Jan 22, 2012

I was surprised to see this, but apparently the Vita has had a teardown analysis and it was estimated that it costs Sony $160 to make each unit.

Here is the cost breakdown:

  • Display and touchscreens: $50
  • Battery: $3.60
  • Cameras: $3.50
  • Wi-Fi/BT/GPS: $3.50
  • NAND: $6.00
  • SDRAM: $9.25
  • Processor: $16.00
  • BB+XCR: $16.25
  • Non-electronic: $11.00
  • Other: $30.00
  • Supporting materials: $10.00

So if this is the case then Sony is making approximately $90 on each Wifi Vita and $140 on each 3G Vita. Before this I had always assumed that Sony was producing the Vita at a loss.

Because of this I see now that Sony can afford to drop the price on the Vita, should that need arise..

Sources:

http://vita.ign.com/articles/121/1216968p1.html

http://www.eurogamer.net/articles/2012-01-20-is-the-playstation-vita-worth-230

http://www.ubmtechinsights.com/teardowns/sony-playstation-vita-teardown/?pi_campaign_id=13825

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Lombax Warrior
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Re: Report: PlayStation Vita Components Cost $160

Jan 22, 2012

Your forgetting all of the costs to get them into the hands of the consumers. It takes labor to build, gas to drive to retail stores, and other price tags here and there.

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PIayStation MVP
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Re: Report: PlayStation Vita Components Cost $160

Jan 22, 2012

I doubt any of that would cost much more. The main point I'm making is that Sony aparently isn't making the Vita at a loss, like they were with the PS3 (at the beginning)...

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Uncharted Territory
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Re: Report: PlayStation Vita Components Cost $160

Jan 22, 2012

there was a thread already like this and also you are forgeting R&D also the cost of making the new IOS as well as all the stuff Tatsuya441 has said. there is also licensing since not all the parts are made by sony them self.

also lets take the 3DS it cost to make $100 even though nintendo said that after the price drop there losing money on it.

____________________________________________________________
Want a option to buy avatar's on the ps vita's psn store. Then vote on the link by copying it to your web browser.

http://share.blog.us.playstation.com/ideas/2012/07/21/option-to-buy-avatars-on-my-playstation-vita/
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Hekseville Citizen
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Re: Report: PlayStation Vita Components Cost $160

Jan 22, 2012

If this legit, then good for Sony. They have lost a lot of money this gen and I hope it gets better for them.

In terms of Sony selling at a loss, you have to take in consideration R&D.

W/ how the Vitas and memory cards are priced, hopefully Sony gets back on their feet real soon.

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Wastelander
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Re: Report: PlayStation Vita Components Cost $160

Jan 22, 2012

You can say the same for your PS3, 360, T.V, Ipad, PC etc etc etc  Blah Blah Snore. 

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PIayStation MVP
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Re: Report: PlayStation Vita Components Cost $160

Jan 22, 2012

Incagneto wrote:

there was a thread already like this and also you are forgeting R&D also the cost of making the new IOS as well as all the stuff Tatsuya441 has said. there is also licensing since not all the parts are made by sony them self.

also lets take the 3DS it cost to make $100 even though nintendo said that after the price drop there losing money on it.

Yes there are development costs, the same was true when Sony developed the PS3, but that isn't the point. Usually these products were sold at a loss when they are first introduced, but apparently that isn't the case for the Vita. Also I believe those additional costs you mention are categorized under "other" ($30), that seems to be a reasonable cost to me for the miscellaneous costs.

The way I see the "profits" Sony makes on the sale of each Vita would first go toward its initial development cost, the larger the profit the faster they can recoup that cost. But if the Vita isn't selling as well as Sony hopes, Sony can still afford to cut the price and still make a profit. I believe Sony has stated that it would take several years to recoup those development costs anyway.

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Uncharted Territory
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Re: Report: PlayStation Vita Components Cost $160

Jan 22, 2012

Logical_Dolphin wrote:

Incagneto wrote:

there was a thread already like this and also you are forgeting R&D also the cost of making the new IOS as well as all the stuff Tatsuya441 has said. there is also licensing since not all the parts are made by sony them self.

also lets take the 3DS it cost to make $100 even though nintendo said that after the price drop there losing money on it.

Yes there are development costs, the same was true when Sony developed the PS3, but that isn't the point. Usually these products were sold at a loss when they are first introduced, but apparently that isn't the case for the Vita. Also I believe those additional costs you mention are categorized under "other" ($30), that seems to be a reasonable cost to me for the miscellaneous costs.

The way I see the "profits" Sony makes on the sale of each Vita would first go toward its initial development cost, the larger the profit the faster they can recoup that cost. But if the Vita isn't selling as well as Sony hopes, Sony can still afford to cut the price and still make a profit. I believe Sony has stated that it would take several years to recoup those development costs anyway.

also your problem is this is just parts also these prices were taken out of some guys bum. again these prices over all are guesses. according to sony they are selling the ps vita at a loss and will not recoup there sales until 3 years after the ps vita has been out.

even the site says they are just parts. according to just parts the 3DS costs $100 but according to nintendo now they are selling the 3DS at a loss. (at least that's what they said after they did the price cut.) 

____________________________________________________________
Want a option to buy avatar's on the ps vita's psn store. Then vote on the link by copying it to your web browser.

http://share.blog.us.playstation.com/ideas/2012/07/21/option-to-buy-avatars-on-my-playstation-vita/
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Uncharted Territory
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Re: Report: PlayStation Vita Components Cost $160

Jan 22, 2012

http://uk.reuters.com/article/2011/06/07/oukin-uk-sony-idUKTRE7567A120110607

http://myona.com/2011/08/13/a-60-loss-per-ps-vita-sold-for-sony-analyst/

http://www.examiner.com/video-game-in-national/sony-to-sell-playstation-vita-for-a-loss-profitable-3...

btw there is my proof that the ps vita is being sold at a loss. so these numbers you posted are missing some variables.

____________________________________________________________
Want a option to buy avatar's on the ps vita's psn store. Then vote on the link by copying it to your web browser.

http://share.blog.us.playstation.com/ideas/2012/07/21/option-to-buy-avatars-on-my-playstation-vita/
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PIayStation MVP
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Re: Report: PlayStation Vita Components Cost $160

Jan 22, 2012

Incagneto wrote:

Logical_Dolphin wrote:

Incagneto wrote:

there was a thread already like this and also you are forgeting R&D also the cost of making the new IOS as well as all the stuff Tatsuya441 has said. there is also licensing since not all the parts are made by sony them self.

also lets take the 3DS it cost to make $100 even though nintendo said that after the price drop there losing money on it.

Yes there are development costs, the same was true when Sony developed the PS3, but that isn't the point. Usually these products were sold at a loss when they are first introduced, but apparently that isn't the case for the Vita. Also I believe those additional costs you mention are categorized under "other" ($30), that seems to be a reasonable cost to me for the miscellaneous costs.

The way I see the "profits" Sony makes on the sale of each Vita would first go toward its initial development cost, the larger the profit the faster they can recoup that cost. But if the Vita isn't selling as well as Sony hopes, Sony can still afford to cut the price and still make a profit. I believe Sony has stated that it would take several years to recoup those development costs anyway.

also your problem is this is just parts also these prices were taken out of some guys bum. again these prices over all are guesses. according to sony they are selling the ps vita at a loss and will not recoup there sales untill 3 years after the ps vita has been out.

even the site says they are just parts. according to just parts the 3DS costs $100 but according to nintendo now they are selling the 3DS at a loss. (at least thats what they said after they did the price cut.)

Yes the prices are estimates, but you shouldn't be so quick to dismiss them since the analysis is done by a professional company specializing in this type of work, and is likely far more accurate than what you or I can come up with.

I don't doubt that because of development costs, Sony won't show an overall profit on the Vita for years, but individually (on a per unit basis) they apparently are apparently selling it for a profit. Once the individual per unit profit exceeds the development/marketing budget then Sony would be profiting. But how fast that happens obviously depends on sales.

Individually I know that initially the PS3 and PSP were sold at a loss (initially) on a per unit basis, it is nice to know that trend isn't going to continue for the Vita...

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