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

tombi123 on 23 June 2008

If Blu-ray becomes as dominant as DVD, Sony will easily make this money back. The End.



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De85 on 23 June 2008
Million said:

Sony has some real problems here. First of all, I still maintain that Blu-Ray was a huge mistake. Blu-Ray is not going to penetrate the market the way DVD did. Ever. Apple and Amazon and Netflix and your cable companies will be providing affordable HD movies on demand whenever you want, whatever you want at an affordable price point within the next five years. I just don't think they are going to make enough money back - remember they are just a piece of the Blu-Ray group.

Firstly fast internet connections are far from being the norm , infact even in the UK households with any internet what so ever may still be at 60%-75% at a rough guess .BTW who's going to carry the huge costs of HD media availible to you the second you press a button , I'm positive as hell that the ISP's won't , i'm also sure that if Apple , Amazon or Netflix wanted HD Media they'd have to carry the burden of the ISP's , something they may not be so willing to do as individual businesses.

 

Remember that if they take 5 years to make this money back, they will already be in or will be nearing research and development of the PS4 by then, which is then a few billion more in costs.

Well i'm pretty sure Sony has the finances to be able to fund huge R&D projects so if the PS3 fails to make a profit I don't think it would hinder the PS4 too much unless Sony felt a change of stratergy would be in order.

 

So does that mean that we can drop the whole BS about the losses from the original Xbox dooming the 360 that PS3 fanboys love to make?

 

 

 



Bodhesatva on 23 June 2008
tombi123 said:
If Blu-ray becomes as dominant as DVD, Sony will easily make this money back. The End.

 

 Sigh, you've been here for too long to say stuff like this, Tombi.

Do you have any evidence to support this? At all? Any statistical data to indicate how much money Sony specifically makes? Factor in the continued marketing costs, derive the precise royalty fees for each Blu Ray sold, and then calculate precisely how much of each royalty payment goes to Sony, and not one of the other seventeen members on the board of directors? Are we certain that none of the other 94 members don't get a cut for their generous support? Do we know how much marketing costs will incur to support Blu Ray (not the PS3, but Blu Ray in particular)? I'd guess you have no evidence of any kind, because I've looked, and I certainly can't find any. It may be 200 million per board member, it may be 1 billion. I don't know. But you don't either, so stop using this defense.

And of course, all of this assumes, as you say, that Blu Ray takes off like DVD.



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Loud_Hot_White_Box on 23 June 2008
dougsdad0629 said:
http://news.cnet.com/8301-10784_3-9874317-7.html

You are correct on many points Squirrel. BD isn't solely a Sony venture. According to the estimates of one analyst in this article, Sony has a bit less than 30% of the royalties. The entire PS3 "gameplan" so to speak was never a secret. Sacrifice a portion of the video game marketshare in order to get Blu-ray established and reap the associated royalties.

 

But he was wrong that in buying movie studios (Sony is part owner of MGM now as well as Sony Pictures, the highest-grossing studio last year), Sony only makes money incrementally from Blu-Ray royalties.  It also makes money from theatrical and DVD releases from the studios.  Blu-Ray is a new stream.

 



Loud_Hot_White_Box on 23 June 2008

Second half of this thread title is vague, but beyond giving it a break for vagueness, sucks.



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CrazzyMan on 23 June 2008

1) Dollar is WEAK.
2) Sony did MUCH more PROFIT on PSone and PS2.
3) Sony WON Blu-ray WAR.
4) Sony is a BIG company, and has MORE CAPITAL, then M$. It`s just all MONEY are INVESTED in BUISSNESS, BUT, if they wanted, they could sell and have MORE money then M$ has. =)
5) Sony will regain money with Software sales, new PSN network + again make STRONGER and RECOGNIZABLE PLAYSTATION BRAND. =) PS3 FTW!



Every 5 seconds on earth one child dies from hunger...

2009.04.30 - PS3 will OUTSELL x360 atleast by the middle of 2010. Japan+Europe > NA.


Gran Turismo 3 - 1,06 mln. in 3 weeks with around 4 mln. PS2 on the launch.
Gran Turismo 4 - 1,16 mln. with 18 mln. PS2 on the launch.

Final Fantasy X - around 2 mln. with 5 mln. PS2 on the launch.
Final Fantasy X-2 - 2.4 mln. with 12 mln. PS2 on the launch.

 

1.8 mln. PS3 today(2008.01.17) in Japan. Now(2009.04.30) 3.16 mln. PS3 were sold in Japan.
PS3 will reach 4 mln. in Japan by the end of 2009 with average weekly sales 25k.

PS3 may reach 5 mln. in Japan by the end of 2009 with average weekly sales 50k.
PS2 2001 vs PS3 2008 sales numbers =) + New games released in Japan by 2009 that passed 100k so far

dtekdahl00 on 23 June 2008

Once they make another Jak game I'm sure they'll make money very quickly :)



Edit your signature or you will be banned. Aww :(

Dolla Dolla on 23 June 2008
CrazzyMan said:
4) Sony is a BIG company, and has MORE CAPITAL, then M$. It`s just all MONEY are INVESTED in BUISSNESS, BUT, if they wanted, they could sell and have MORE money then M$ has. =)

Joke post?

 



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Tag: "I have tasted Obi-Wan's bitter tears"

Starmistkarmic on 23 June 2008

This is bad news. I now actually feel sorry for Sony.
Don't get me wrong, I love my PS3 and the 27 games I bought for it.
But for Sony to come out, hat in hands.....making me feel pity....for a corporation? This, indeed, is a sad turn of events.



tombi123 on 23 June 2008
Bodhesatva said:
tombi123 said:
If Blu-ray becomes as dominant as DVD, Sony will easily make this money back. The End.

 

 Sigh, you've been here for too long to say stuff like this, Tombi.

Do you have any evidence to support this? At all? Any statistical data to indicate how much money Sony specifically makes? Factor in the continued marketing costs, derive the precise royalty fees for each Blu Ray sold, and then calculate precisely how much of each royalty payment goes to Sony, and not one of the other seventeen members on the board of directors? Are we certain that none of the other 94 members don't get a cut for their generous support? Do we know how much marketing costs will incur to support Blu Ray (not the PS3, but Blu Ray in particular)? I'd guess you have no evidence of any kind, because I've looked, and I certainly can't find any. It may be 200 million per board member, it may be 1 billion. I don't know. But you don't either, so stop using this defense.

And of course, all of this assumes, as you say, that Blu Ray takes off like DVD.

 

Sorry no data. But do you think 17 companies would spend billions of dollars developing a format, if it wasn't worth it in the end?

I am 99% sure Blu- Ray will take off like DVD. With all the film industry behind Blu-Ray, it doesn't matter whether the general public want it or not. Blu-Ray will get forced on the consumers. In a couple of years Blu-Ray players will hit mass market point. Film companies will start to release their films on Blu-Ray first, then on DVD later. As Blu-Ray player sales rise, film companies will forget about DVD's all together.

As the price of making films goes up, film companies can't keep selling DVD's at £10 at retail. Film companies would rather sell you a Blu-Ray film for £20, rather than a DVD for £10. As I say, film companies will force Blu-Ray upon the consumer, and as Blu-Ray player prices come down, the consumers will just accept this.