- Shortly after Techinsights estimated the PlayStation 4 (SNE) has a manufacturing cost of $296, IHS, which is well-known for its phone/tablet teardowns, has estimated Sony's console has a manufacturing cost of $381, or just $18 less than its retail price of $399.
- Sony has said it expects to initially sell the PS4 at a loss, but will turn a profit if a user buys one launch title and signs up for a $50/year PlayStation Plus subscription. Manufacturing costs are bound to drop over time, as prices fall for various components.
- IHS thinks CPU/GPU supplier AMD is receiving $100 per PS4 unit. If reasonably accurate, that figure could mean AMD is also receiving ~$100 from Microsoft for each Xbox One produced, given the PS4 and One rely on very similar AMD Jaguar processors.
- AMD shares have been pressured by concerns the company sacrificed ASPs/margins to secure its console wins.
- Sony recently announced PS4 sell-through passed 1M within its first 24 hours of its North American launch. That puts the company on its way to hitting a target of 5M global sales in FY14 (ends March '14).
at Zacks.com (Tue, 5:15PM)