"The new sales leader is Sony, but that should give no one reason to cheer. Sony lost money for 4 straight years (2008-2012), and was barely able to squeek out a 2013 profit only because it took a massive $4.6B 2012 loss which cleared the way to show something slightly better than break-even. Now S&P has downgraded Sony’s debt to near junk status. While PS4 sales are better than XBox One, in the fast shifting world of gaming this is no lock on future sales as game developers constantly jockey dollars between platforms.
Whether Sony will make money on PS4 in 2014 is far from proven. Especially since it sells for $100/unit (20%) less than XBox One – which compresses margins. What investors (and customers) can expect is an ongoing price war between Nintendo, Sony and Microsoft to attract sales. A competition which historically has left all competitors with losses – even when they win the market share war."
Today I have learned a lot of things:
- Sony tooks massive losses on purpose.
- An American rating agency honestly downgrades a Japanese company's debt to junk status after that company to surprisingly strive in recent months.
- Sony Gaming Division presents profits in the last quarter but now that software will significantly sell upon the hardware sold in that quarter, Sony may not present profits anymore.
- PS4 will engage into a price war despite being selling more than its competitors combined and being enlarging that difference month after month.
Prediction made in 14/01/2014 for 31/12/2020: PS4: 100M XOne: 70M WiiU: 25M
Prediction made in 01/04/2016 for 31/12/2020: PS4: 100M XOne: 50M WiiU: 18M
Prediction made in 15/04/2017 for 31/12/2020: PS4: 90M XOne: 40M WiiU: 15M Switch: 20M
Prediction made in 24/03/2018 for 31/12/2020: PS4: 110M XOne: 50M WiiU: 14M Switch: 65M