Fun with numbers:Microsoft ramps up Xbox 360 shipments
The world's largest software maker raised the bottom line of its Xbox 360 sales target range for the year ending June 30 to 5 million to 5.5 million units from an earlier range of 4.5 million to 5.5 million.
Sony said it plans to ship 6 million PS3 units by March, 2007.
Earlier on Thursday, Sony forecast its game division to register a 100 billion yen ($875 million) loss in the current business year ending March 31.
From the current profitability of the Sony gaming division, their projected loss due to the PS/3 AND that being based on 6 million units through March 2007, it should be possible to calculate an fairly accurate loss per PS/3.TVs and video games help Sony avoid loss
Profit at the games division, which includes both hardware and software for the PlayStation video game series, rose 52 percent to ¥67.8 billion. [$588 million]
So, $588 million profit (FY2006) to $875 million loss (FY2007) clearly all due to the PS/3.
Assuming 50% PS/2 profit canibalization and a 4 PS/3 titles sold per unit ($10 profit per), the direct losses on the PS/3:
+ $588/2 (PS/2 profits)
+ 6 million * 4 * $10 (PS/3 game profits)
$1.4 billion / 6 million = $234 gross sales loss per PS/3 ($194 net with the $40 in game profits) for FY2007
So, $400-$500 retail, depending on (ahem) the cost of building a PS/3.