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SONY lost 3.31 Billion on initial PS3 costs; May never see that money back.

Forums - Sony Discussion - SONY lost 3.31 Billion on initial PS3 costs; May never see that money back.

Wow. You rarely see any company being that frank. It's like Sony is saying:
Look, we've lost this generation. We're not going to keep cutting prices, etc. in a desperate bid to beat Wii. Instead we're going to focus on making a profit and try to recoop as much as we can (and expect MS to do the same).

I think Sony and MS are both in the same boat. They can't beat Wii. They can try to beat each other but if they do, they'll both lose profitablity. Or they can both hold the course, keep prices as they are (Nintendo certainly isn't about to reduce theirs either) and focus on making money instead.

MS is making a profit (sorta they lumped 3 years worth of RRoD costs all into one quarter instead of spreading it out) but I'm sure they'd like to recover costs too. And between xbox & 360 they are closer to 6 billion in the hole there. So don't expect any 360 cost cutting until the holidays at best.



 

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dib8rman said:
@doug

Blu-Ray is the standard? I though it shifted from DvD to bootlegs... unless your telling me Bootleg isn't a viable format!

For all intent's and purposes Bootleg won the format war at least in my pocket err eyes.

 

Bootleg has always been the real standard :) .




No one should expect any price cut till next year. The article written above for uneducated people in the field of stocks (myself included) can easily be led to believe something that is far from the truth.

Aside from all the massive Xbox 360 fanboys in here- someone mentioned a very important fact-


EVERYONE NEEDS TO REALIZE SOMETHING:

The report is talking about FISCAL losses. Key word- FISCAL. April 06-March 07, and FY08 is April 07-March 08.

This doesn't mean that PS3 is still being sold at a loss. All this reinforces is, at one time the PS3 was losing a ton of money and that they went from losing 2 Billion on production to 1 Billion (and that could be an average cost too, the PS3 didn't reach the break even mark till January, who knows where its at now, but I am guessing its at 350 to produce a console).

The gaming division will start seeing a profit in 2009. Both Microsoft and Sony are probably both regretting putting in a price cut, and no one can blame them. Both companies have copious amounts of money to recoup.



Console Agnostic since 2001.

talkingparrot said:
No one should expect any price cut till next year. The article written above for uneducated people in the field of stocks (myself included) can easily be led to believe something that is far from the truth.

Aside from all the massive Xbox 360 fanboys in here- someone mentioned a very important fact-


EVERYONE NEEDS TO REALIZE SOMETHING:

The report is talking about FISCAL losses. Key word- FISCAL. April 06-March 07, and FY08 is April 07-March 08.

This doesn't mean that PS3 is still being sold at a loss. All this reinforces is, at one time the PS3 was losing a ton of money and that they went from losing 2 Billion on production to 1 Billion (and that could be an average cost too, the PS3 didn't reach the break even mark till January, who knows where its at now, but I am guessing its at 350 to produce a console).

The gaming division will start seeing a profit in 2009. Both Microsoft and Sony are probably both regretting putting in a price cut, and no one can blame them. Both companies have copious amounts of money to recoup.

 

I'm not sure anyone is reading it wrong, as you imply.  It's quite clearly the past.  And one thing to note is that they mention that some of the losses involved with the hardware R&D was actually reported in a separate division from gaming.  So the actual losses were more than 3.31 billion. 

This article is only interesting for one reason.  Before, everyone was merely guessing how much money the PS3 was costing SONY.  Now we have some solid numbers.  That's all.



My End of 2008 Hardware Predictions (console only):

Wii : 50 million

360: 28 million

PS3: 24 million

These predictions were made on January 3rd and won't be revised

LINK

talkingparrot said:
No one should expect any price cut till next year. The article written above for uneducated people in the field of stocks (myself included) can easily be led to believe something that is far from the truth.

Aside from all the massive Xbox 360 fanboys in here- someone mentioned a very important fact-


EVERYONE NEEDS TO REALIZE SOMETHING:

The report is talking about FISCAL losses. Key word- FISCAL. April 06-March 07, and FY08 is April 07-March 08.

This doesn't mean that PS3 is still being sold at a loss.
All this reinforces is, at one time the PS3 was losing a ton of money and that they went from losing 2 Billion on production to 1 Billion (and that could be an average cost too, the PS3 didn't reach the break even mark till January, who knows where its at now, but I am guessing its at 350 to produce a console).

The gaming division will start seeing a profit in 2009. Both Microsoft and Sony are probably both regretting putting in a price cut, and no one can blame them. Both companies have copious amounts of money to recoup.

I somehow doubt Playstation execs spent $280m in hookers and blow from January to March of 2008.

I think it's safe to say the PS3 is still being sold at a loss.

 




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I didn’t consider that, hmm maybe Sony didn’t artificially create demand for the 80 gig… maybe they really couldn’t afford it… but why not increase the price O.o wow it seems like they are in some kind of catch 22.



I'm Unamerica and you can too.

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The Hunt Begins 4/20/2010 =D

No worries, Sony-ites.

As our beloved fallen leader Krazy Ken once said, Sony will just work more hours so they can afford the PS3.



this is just good news for Consumers. they can get PS3 much lower than it's actual cost.but not very good news for Sony.

This pretty much confirms no price drop anytime soon.(maybe a small one Christmas or when KZ2 comes out)



 

 

 

Nintendo just freakin' called it. Their GC 1.5 can get mocked all the bashers want, and that still won't change the fact that Nintendo made a much better business move than the other two first parties.

This does not mean Sony is in trouble. It just likely means they are going to be a lot more cautious with their next systems, same with Microsoft.



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

SpartanFX said:
this is just good news for Consumers. they can get PS3 much lower than it's actual cost.but not very good news for Sony.

This pretty much confirms no price drop anytime soon.(maybe a small one Christmas or when KZ2 comes out)

LOL.  How can it be good news for consumers for buying something that's still so expensive.  I think someone spoke of this example once. 

-Just because Ferrari is selling their cars for 500k when it cost 600k to make, it doesn't mean it's "Good news" to the consumer when it's a luxury item and not a must have item. :)



Currently loving my Wii x2, Xbox 360 Pro & Xbox 360 Arcade, and Final Fantasy 7 Advent Children Limited "Cloud Black" 160GB PS3

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