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Forums - Sony Discussion - How much money Sony really lost with the PS3

thismeintiel on 19 April 2013
reviniente said:
The point thismeintiel, is that while the X360 is helping to make MS's E&D division solvent, the PS3 created heavy losses for SON¥. Consider now marketshare for PlayStation after the release of the PS3. Hardly a comeback.

And the 360 created great losses for MS.  What's your point?  I'm just saying, if we are going by financials, the PS brand has still been quite profitable overall, while the Xbox venture is still billions in the hole, and probably won't break even for another gen or two.  So, using financials, Xbox is a much bigger failure than Playstation.  Of course, I wouldn't say the 360 is a failure, regardless of profits/debts.  Just seems a lot of 360 guys love to throw out financials when Sony is winning in sales, while completely forgetting how the original Xbox played out.



 

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Vinniegambini on 19 April 2013
sales2099 said:
ethomaz said:
sales2099 said:

Profitable now. Covered all the costs for its lifetime? Not even close and likely never will.


PS3 became profitable to Sony in FY2009 (ends March 2010) and before that they loss ~3.5 billion dollars in the division... I guess they already covered 1.0-1.5 billion of this loss... so now they need to cover the others 2.0m billion... hard but I believe Sony can at least tie the looses in 2015-2016.

less then a billion Id say. PS division going back in the red with the PS4 launch. but thats another discussion.

True. However, I don't think Sony will go ahead and release the PS4 on a money losing position however as they do not have the financials to support such a stance any longer. Sony will only profit in FY2012 due to extensive asset-selling of over 2 Billion U.S. (Buildings, Samsung TV Division, SENA shares) to a projected profict of over 200 million. Sony, going into their new fiscal year, is going to have a bumpy road ahead and I can't see them releasing the PS4 without a small profit (hardware only, not counting R&D) or a break even margin.

Sony must hit all the right notes with the PS4 as it might be a make or break. I just hope they learned their lesson with their recent failure the PS Vita - though to be fair, they were destined to fail on that end due to Nintendo's market share dominance in the handheld space, competition from mobile  tablets, and lack of third party developers interest.



BluGamer23 on 20 April 2013
adriane23 said:
BluGamer23 said:
adriane23 said:
BluGamer23 said:
LOL! delicious thread! .. still cant believe people try to defend it.. ps3 is a financial disaster!

yes yes.. lets blame their tvs and other products for the losses! well done!

Only the Wii and the DS were financial profits this gen if we go by what you say. I guess MS and SONY shouldn't have even bothered to release consoles this gen. OR let's try this concept. Wait until the consoles actually stop selling and THEN assess whether they were financial disasters. We might as well say the 3DS and the WiiU are financial disasters since they haven't recouped on the losses yet.

"We might as well say the 3DS and the WiiU are financial disasters since they haven't recouped on the losses yet."..  sureee okay!

lets ignore that the 3DS is only 2 years old with bare losses and is already profitable.. and the wiiU is 5 months old.. and then as a Nintendo fan I will find something else to blame for the losses.. since they dont sell tvs.. I will blame the losses to the cost of building a new huge Nintendo HQ! yeh thats it..  Nintendo is a financial disaster!... is that good enough for you?..

Your comprehension skills leave much to be desired. I never said anything related to Nintendo being a financial disaster.


neither did I say you said that.. FAIL! .. but nice try! =)



 

 

arcane_chaos on 20 April 2013

talking about the PS3's losses at this point is kinda like crying over spilled milk...what's done is done, did Sony stop producing the PS3? No, did it stop them from making a PS4? No. While we can sit here and debate Sony financial practices, I think safe to assume Sony is not going anywhere anytime soon.



DirtyP2002 on 20 April 2013

I just wanted to makle sure everybody gets that the PS3 was and is a financial nightmare for Sony. And the denial in this thread shows that it was neccessary to do so. Even if the PS3 manages it past the Wii, Sony still lost this gen, because Nintendo made a shitload of money with it. Heck even MS made way more money with the 360 than Sony with the PS3.



Imagine not having GamePass on your console...

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adriane23 on 20 April 2013
BluGamer23 said:
adriane23 said:
BluGamer23 said:
adriane23 said:
BluGamer23 said:
LOL! delicious thread! .. still cant believe people try to defend it.. ps3 is a financial disaster!

yes yes.. lets blame their tvs and other products for the losses! well done!

Only the Wii and the DS were financial profits this gen if we go by what you say. I guess MS and SONY shouldn't have even bothered to release consoles this gen. OR let's try this concept. Wait until the consoles actually stop selling and THEN assess whether they were financial disasters. We might as well say the 3DS and the WiiU are financial disasters since they haven't recouped on the losses yet.

"We might as well say the 3DS and the WiiU are financial disasters since they haven't recouped on the losses yet."..  sureee okay!

lets ignore that the 3DS is only 2 years old with bare losses and is already profitable.. and the wiiU is 5 months old.. and then as a Nintendo fan I will find something else to blame for the losses.. since they dont sell tvs.. I will blame the losses to the cost of building a new huge Nintendo HQ! yeh thats it..  Nintendo is a financial disaster!... is that good enough for you?..

Your comprehension skills leave much to be desired. I never said anything related to Nintendo being a financial disaster.


neither did I say you said that.. FAIL! .. but nice try! =)

LOL your rant that ended with, "...is that good enough for you?" says otherwise, so don't try and cover your ass now that you're embarassed. You thought I was being unreasonable about the losses Nintendo has taken from the WiiU and 3DS even though they've only been on the market a short while. If you had read my post correctly, you would have understood that I was pointing out how silly it would be to do that, just like it's foolish that people are doing the same thing with the PS3 and 360 in this thread when neither console has stopped selling.

Just accept that you misread what I wrote.



I am the Playstation Avenger.

   

Gugerface on 20 April 2013

I'd say PS3 was such a disaster that Sony can't afford to fail with PS4. They lost a ton of money and will not recover those assets. PS4 better be profiting from launch or they will be in deep trouble.



bucky1965 on 20 April 2013
Max King of the Wild said:
bucky1965 said:
JoeTheBro said:
bucky1965 said:
JoeTheBro said:
bigCchris said:
bucky1965 said:
bananaking21 said:
bucky1965 said:
bananaking21 said:
bucky1965 said:
bananaking21 said:
bucky1965 said:
Their (Sony's) 10 year plan was a failure.

atleast say it after the 10 years are over


Sonys next console release wasn't supposed to happen until 10 years  after the launch of the PS3 (Not 5 years).. So they cuold recover the losses of the R+D, production, etc.


i dont think you realize what the 10 year life cycle is

Do you know what Sonys 10  year plan (is) was? Releasing the PS4 now,  was not part of it.

yes it was, or they wouldnt have started work on the ps4 5 years ago. the life of the ps3 doesnt depends on when the ps4 launches. its really that simple


www.1up.com/news/kaz-hirai-ps3-lifespan-10

Good find. but that quote happened in 06 before microsofts success put a kink into the system, they were forced to adapt. but your point is taken sony initial plan was to release the ps4 much later, it was one of the arguements to justify their huge price point. Microsoft changed the rules to them game. 

Um no. The PS3 10 year lifespan means the PS3 will be supported for 10 years. That's even what Kaz said. It has nothing to do with when the next console launches.

Look at PS1 and PS2 as proof.

The market is completly  different than the PS1 and PS2 days  IOS and android are in the mix now. How many devs will still be making games for PS3.? Even the price point of the  PS4 changes things. (took this from qoute i made to ethonmaz, added ps1). The market has changed since then.


It's different and yet it's the longest generation in history.

Also you're confused in what the 10 year cycle means. The last PS1 game to be released was in 2004, perfectly 10 years after the Japanese launch. The last PS2 game came out only six months ago, 12 years after the launch. That is what the 10 year cycle means. Sony even in your link it states the 10 year cycle was proven with the PS1 yet the PS2 came out 6 years later so why would it be different with the PS3?

It's different and yet it's the longest generation in history.

Very true. Now you can game on anything that has a screen. It doesn't have to be a dedicated gaming device anymore, like in the PS1and PS2 days.

Also you're confused in what the 10 year cycle means

No the 10 year plan is for the PS3 only.

Dude, you are the wrong one. Now accept that and give up. The only ones who said Ps3 would be on the market for 10 years before Ps4 launched was IGN. Not Kaz


READ THE LINK! THOSE ARE KAZ'S WORDS

www.1up.com/news/kaz-hirai-ps3-lifespan-10

I AM DONE.



bucky1965 on 20 April 2013
bigCchris said:
Max King of the Wild said:
bigCchris said:
Max King of the Wild said:
bigCchris said:
Max King of the Wild said:
bigCchris said:
JoeTheBro said:
bigCchris said:
bucky1965 said:
bananaking21 said:
bucky1965 said:
bananaking21 said:
bucky1965 said:
bananaking21 said:
 

 

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what do you mean? i think he was trying to assure customers not to worry about something new and better coming so soon after they purchased the ps3, my  whole point is that after reading the quote, for me at least, it appears that in 06 sony plans where to release the ps4 much later, as i said early the adapted to the changing market, as a good company should, and decided to released this year, around the 7 year mark, i think it was a direct response to microsoft and rumors of their launch plans

No, he was drawing a parrallel to the stragety they are taking with the Ps3 to the strageties they took with the Ps1 and Ps2. Both of which lasted longer than 10 years AND their predeccesor launched before 10 years.

huh? wasnt the ps2 released in 2000 and the ps3 in 2006, a six year difference, now in 2006 he is quoted as saying"I think that we are offering a very good value for the consumers. We look at our products having a 10-year life cycle, which we've proven with the PlayStation. Therefore, the PlayStation 3 is going to be a console that's going to be with you again for 10 years. We're not going to ask the consumers to suddenly buy another PlayStation console in five years time, and basically have their investment go by the wayside. So for all those reasons, I think at $599 we're offering a very good value to the consumers"  he specifically says not to expect another console in five years time, Why not if the transistion from ps2 to ps3 was only six years isnt five reasonable? Parrallels?  As i said before i believe when it came to the ps3, in 06 they believed it would last alot longer before the need to release a new console, But since we're just repeating ourselfs ill end it with this Agreed to Disagree.

"Our PRODUCTS" meaning the Ps1/2... and like you said the Ps3 launched 6 years after the Ps2... "We look at [ps1 and ps2] having a 10-year cycle, which we have proven." ...So how the hell can their products have a 10 year cycle if they are being launched 5 and 6 years after their predecessors? The obvious answer is they are talking about the entire time its on the shelf and not until the next product launches

And I won't agree to disagree because you are flat out completely wrong. Just accept it

hahaha read my responses i never said that 10 life cycle meant how long it would be until they release a new system, that was the other guy bucky who made that mistake, sloppy anyways im out

READ THE LINK EVERYBODY, THEY ARE KAZ'S WORDS
www.1up.com/news/kaz-hirai-ps3-lifespan-10

I AM DONE.



walsufnir on 20 April 2013
VGKing said:
Bruxel said:
not suprised sony lost so much money with the ps3. The formula of having a high end console that costs lets say 800 to manufacture and 600 to retail is digging a huge hole for them to dive into, ps3 sold at a major loss.. The wii was weak but proftible is why i worry ps4 is going to make the same mistake.

It's not. If the console is sold at a loss it won't be anywhere near $200. I'd say PS4 will sell anywhere from $50 loss to $50 profit. It all depends on the price point which I expect to be betwee $400-$500. Then there's stuff like Playstation Plus and Gaikai which will only add to profits.

Gaikai will add to profits?! For Gaikai Sony has to acquire a lot of hardware, has to make expensive contracts with very big global peering partners and cdn-providers, probably they have to put up several datacentres all over the world and you say it will only add to profits? I doubt so.