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

well i read another articla and i'm trying ot find it at the moment, although the huge losses, sony made up alot of their loss on ps3 release since they own the rights to the spider man films which have profited sony big time! as well as that they are also one of the largest cinema, dvd and blue ray film distributors in the world.

 

The development cost of a ps3 has also been halved since its release and they reported earlier in the year that they have started to break even since then with every ps3 sold. they are no longer losing out with every unit sold. They also sold the cell chip rights to ibm which they got quiet a bit of money back from to recover some of their losses.


So although the ps3 aint doing as great as it should be, their future is far more secure then made out by many in this thread.

 



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antfromtashkent said:
BengaBenga said:

You're right. With the 127/1 Yen/$ it is about $ 400 million loss in 2001.
About a third of this years.

 

 so twice the loss / twice the cost of the system = the same dosent it?

 

If we take the year before into acount it's a bit different than that. 2000 show 800 million profit for SCE. So those two years comined have a profit of $400 million, while 2007 - 2008 show a 3.3 billion loss for SCE. (Years are when year ends, not FY).

Although the PS2 was not or barely launched in April 2000, the R&D and other costs can be compared to 2007.



BengaBenga said:
antfromtashkent said:
BengaBenga said:

You're right. With the 127/1 Yen/$ it is about $ 400 million loss in 2001.
About a third of this years.

 

 so twice the loss / twice the cost of the system = the same dosent it?

 

If we take the year before into acount it's a bit different than that. 2000 show 800 million profit for SCE. So those two years comined have a profit of $400 million, while 2007 - 2008 show a 3.3 billion loss for SCE. (Years are when year ends, not FY).

Although the PS2 was not or barely launched in April 2000, the R&D and other costs can be compared to 2007.

i think that thats the combination of PSP and PS3 being out so close together is the problem and if thats the case then Sony is doing better than it did with the PS2.....

 



Fei-Hung said:
well i read another articla and i'm trying ot find it at the moment, although the huge losses, sony made up alot of their loss on ps3 release since they own the rights to the spider man films which have profited sony big time! as well as that they are also one of the largest cinema, dvd and blue ray film distributors in the world.

So although the ps3 aint doing as great as it should be, their future is far more secure then made out by this thread.

 

We're talking SCE (Sony Computer Entertainment) only here. All the figures are for SCE, not for the whole of Sony. Sony Pictures has nothing to do with this discussion.

As a comparison: Sony had around $ 3.5 billion operating income this year, SCE $ 1.2 billion operating loss.



@bengabenga ok



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Hmm, interesting topic. What do you guys think this means for a possible price cut for the PS3 this fiscal year? Possible, or impossible?



I don't need your console war.
It feeds the rich while it buries the poor.
You're power hungry, spinnin' stories, and bein' graphics whores.
I don't need your console war.

NO NO, NO NO NO.

antfromtashkent said:
BengaBenga said:
antfromtashkent said:
BengaBenga said:

You're right. With the 127/1 Yen/$ it is about $ 400 million loss in 2001.
About a third of this years.

 

 so twice the loss / twice the cost of the system = the same dosent it?

 

If we take the year before into acount it's a bit different than that. 2000 show 800 million profit for SCE. So those two years comined have a profit of $400 million, while 2007 - 2008 show a 3.3 billion loss for SCE. (Years are when year ends, not FY).

Although the PS2 was not or barely launched in April 2000, the R&D and other costs can be compared to 2007.

i think that thats the combination of PSP and PS3 being out so close together is the problem and if thats the case then Sony is doing better than it did with the PS2.....

 

 

Hmm, I don't see how it does better. I see that the difference between + 400M and -3.3 billion is staggering. I don't see how you can call that better.

The PSP and PS2 should make quite a big profit, during the PS2 launch it was only the PSone.



BengaBenga said:
Everyone that trolls in this thread gets banned. This is a hell of a lot of great work and I won't let it get ruined by some idiot in need of some attention.

Thanks BengaBenga.

 



if sales in hardware and software increase during the end of this year along with reduced production costs then i think it is very much possible to see a price cut. especially near to xmas.



ZenfoldorVGI said:
Hmm, interesting topic. What do you guys think this means for a possible price cut for the PS3 this fiscal year? Possible, or impossible?

 

Nothing is impossible, but it's highly unlikely.

1) Sony's shipment target for PS3 is 10 million (april 2008 - march 2009). They'll easily make it at the current pricepoint, hence no need for a pricecut.
2) Howard Stinger even mentioned the need for profitability at SCE. It's the first time in years I heard the CEO of Sony talk so directly about SCE's strategy. They used to have quite some autonomy within Sony. It's a big issue (see the figures I posted above, SCE is responsible for a profit drop of over 25%) and a pricecut will have an enormous impact on the profitability.

A simple calculation: Pricecut of $100 x 1 million PS3's is a staggering 100 million less profit.