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SONY LOSSES, especially PS3 New & Improved Analysis - End Mar 2008

Forums - Sales Discussion - SONY LOSSES, especially PS3 New & Improved Analysis - End Mar 2008

$2 per copy seems way too low for Sony's licensing fees. From what i've heard PS3 is by far the most expensive liscensing wise. I'd put it in the 8-10 range if i had to speculate myself.  Execting Nintendo's to be around 5 and Microsofts around 7.



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i think i will pass this year and keep the idea of buying ps3 to next year ... want to see whats will hapend next for sony .... thnx for this warning thread man ;).



Well I have them open, might as well post the results:

April 2000 - March 2001:

Revenue: 660.9 (Billion Yen)
Operating Income: (51.1) (Billion Yen) (note between brackets = loss)



actually it's not over $400 lost per PS3. it's more in the area of $275.
I remember reading an article a few months after it's launch about how much money they're losing.



i think, whatever the precision of these figures, this shows just how much of a hit the ps3 has taken financially to help push Blu Ray. I think for games this decision will help the PS3 in the next 2-3 years but I think that for films Sony will not get the results they are after by the time the majority of people care about HD (big difference between owning HD Ready TV's and caring about them) digital distribution will take off. In hindsight I think Sony will regret they put Blu Ray drives into the PS3.



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There are other factors your analysis is missing like the costs of marketing and PSN/Online/Home. These are probably contributing to the loss, but it's impossible to determine how much based on the limited information we have.



Increasing the profit on software will just make the other losses seem bigger not less. If you have a fixed published loss, increasing the profit value of specific areas just means the losses of the other areas has to go up as well

For example:

X + Y = -10

If X = 2, Y = -12
If X = 5, Y = -15



It will be interesting to see the quarterly numbers for FY 2009. Fiscal Year 2008 included the 20 gig and 60 gig systems that were sold at a substantially higher loss. I believe the initial loss estimates on these were close to $500 per console. The introduction of the 40 gig and 80 gig really allowed Sony to pair the cost down. The fact that they were able to get a blended per system loss to ($210 per console) is fairly remarkable. I appreciate your research. I appreciate Sony for splitting the cost of my 60 gig PS3.



Thanks for the input, Jeff.

 

 

Sullla said:
What this does indicate is how significant the cost of developing the current consoles proved to be. I don't think the PS3 has lost $5 billion, but it's almost certainly more than $3 billion in the red. Whether or not you believe this is a good thing (as MikeB seems to think) is up to each individual.

It's difficult to estimate total losses due to PS3. Not only some of thse losses were offset by PSP and PS2 income but part of cost of PS3 R&D was absorbed by the Electronic Division ( Sony said this recently ).

In the last two ( fiscal ) years SCE lost about US$ 3.3 billions so ....

 



 “In the entertainment business, there are only heaven and hell, and nothing in between and as soon as our customers bore of our products, we will crash.”  Hiroshi Yamauchi

TAG:  Like a Yamauchi pimp slap delivered by Il Maelstrom; serving it up with style.

BengaBenga said:

It's actually this one: http://www.sony.net/SonyInfo/IR/financial/ar/qfhh7c000000dh3y-att/ar2001e.pdf

Ending March 31st 2001. PS2 was launched the year before, so that's the first year of PS2.

The 2000 one tells you something about the R&D costs of PS2.

 

 

 as far as i can see the opperating income was -51 billion yen when the PS2 came out... can someone translate that to USD? i tryed but the answer dosent seem rite.... the convertion rate in 2001 was roughly 127 yen / 1 usd