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Forums - Sony Discussion - Sony Losing Money On PS3 Slim

CGI-Quality said:
durtysouthhustlah said:
CGI-Quality said:
durtysouthhustlah said:
CGI-Quality said:
durtysouthhustlah said:
CGI-Quality said:
The PlayStation division is making a profit, as a whole. The PS3 is not.

Why do you guys love to focus on the negative aspect of this while ignoring the positive side?

The thread title says "Sony losing money on PS3 Slim," not "Sony losing money on PS division."

Of course the PS2 and PSPs are making money. They are old as dirt. However, their baby, the PS3, is bleeding like a gunshot victim in ER.

I am curious what shareholders are thinking about this *experiment* and the lack of money this product is making nearly 3 years after launch. And this is coming from a 2-generation video game leader. You'd think Sony would know a thing or two about winning. Apparently not ...

Ummm, I'm aware of that. I'm just saying that people too often jump all over the negative aspect while ignoring anything positive.

I don't think so, CGI. I think folks want news - not propaganda and not spam - but news. The positive is - the Slim is here and the $299 price point will generate sales. The negative? Sony's still bleeding money off the PS3. That's the truth. And the biggest piece of news is - how in the world Sony let the crown loose after two generations of being on top? Even if they stick to the 10-year plan and the PS3 outsells everything on the planet, it was still in last place for 3 years. That's a poor, poor start for the former champs any way you slice it.

But mistakes can happen, just look at Nintendo.

I definitely agree. I nearly bought a Virtual Boy back in the day. However, they learned from their mistake and marketed the devil out of the Wii. And they relied on word of mouth. And nongamers to ignite the fire.

Sony's biggest obstacle, in light of this recession we are in, is to make folks say 'I need to buy a PS3.' They need to make folks want a PS3 so bad they'd plop down $321 bucks to get one. And right now, I don't see Sony doing it and they desperately need to to be victorious this generation.

With that said, this is Sony's first blunder. I doubt the same will be repeated in the future.

Um.... what? PsP-Go = $249.99 ? ? ? ?

it doesn't even have a touch screen and it's as much as an iPhone


Take a look at the admittedly incomplete list of proprietary devices or formats that Sony has introduced in the last fifteen years or so.

Mini-Disc (1991)--custom disc format, and used ATRAC audio compression, which is proprietary.
Sony Dynamic Digital Sound (1993)--a competitor to the Dolby Digital 5.1 standard.
Multi-Media Compact Disc (1994)--Sony's proprietary format for high-density optical storage, developed in conjunction with Phillips. Negotiations merged this format and Toshiba's Super Density disc format into what would become DVD.
Music Clip (1999)--Sony's first digital player, used ATRAC audio compression.
HiFD (1998)--a competitor to Iomega's Zip drive.
Memory Stick (1998)--proprietary memory device as a competitor to SD and Flash memory.
Super Audio CD (1999)--an optical disc format with higher fidelity than the CD.                                                                                                                                                                          Hi-HD (2004)media storage format as a further development of the Mini Disc                                                                                                      PSP (2004)--Uses Universal Media Disc (UMD) media, a proprietary media format.



PS4 Preordered - 06/11/2013 @09:30am

XBox One Preordered - 06/19/2013 @07:57pm

"I don't trust #XboxOne & #Kinect 2.0, it's always connected" as you tweet from your smartphone - irony 0_o

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This is surely a good thing. The strategy of providing a loss leader worked for Sony for the PS1 and PS2, and following that strategy for the PS3 is surely a good idea.

Where it failed before was the unrealistic price point. Now Sony can provide a system at a mass market price, increasing it's share of the market and therefore increasing revenue through its games and peripherals, as Kaz clearly states.

The PS3 console hardware may not make money, but it will get bought, and it will be bought with profitable games, downloads and peripherals.

how can people make this out to be a bad thing?



Atari 2600, Sega Mega Drive, Game Boy, Game Boy Advanced, N64, Playstation, Xbox, PSP Phat, PSP 3000, and PS3 60gb (upgraded to 320gb), NDS

Linux Ubuntu user

Favourite game: Killzone 3

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CGI-Quality said:
@ Sega

And I'm sure people knew I meant for a console in one generation. You can pretend you didn't understand all you want...

? wtf are you talking about?


edit:

wait.. are you saying your this guy? from the reply I made above?

because thats what this the reply:

"but I guess after reading it a second time, I was talking about PS3, he was talking about the company.."

was for..

 



PS4 Preordered - 06/11/2013 @09:30am

XBox One Preordered - 06/19/2013 @07:57pm

"I don't trust #XboxOne & #Kinect 2.0, it's always connected" as you tweet from your smartphone - irony 0_o

Small losses on PS3 hardware will be offset by increased software and accessories sales



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numonex said:
Small losses on PS3 hardware will be offset by increased software and accessories sales

Define small?



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

durtysouthhustlah said:
CGI-Quality said:
durtysouthhustlah said:
CGI-Quality said:
durtysouthhustlah said:
CGI-Quality said:
The PlayStation division is making a profit, as a whole. The PS3 is not.

Why do you guys love to focus on the negative aspect of this while ignoring the positive side?

The thread title says "Sony losing money on PS3 Slim," not "Sony losing money on PS division."

Of course the PS2 and PSPs are making money. They are old as dirt. However, their baby, the PS3, is bleeding like a gunshot victim in ER.

I am curious what shareholders are thinking about this *experiment* and the lack of money this product is making nearly 3 years after launch. And this is coming from a 2-generation video game leader. You'd think Sony would know a thing or two about winning. Apparently not ...

Ummm, I'm aware of that. I'm just saying that people too often jump all over the negative aspect while ignoring anything positive.

I don't think so, CGI. I think folks want news - not propaganda and not spam - but news. The positive is - the Slim is here and the $299 price point will generate sales. The negative? Sony's still bleeding money off the PS3. That's the truth. And the biggest piece of news is - how in the world Sony let the crown loose after two generations of being on top? Even if they stick to the 10-year plan and the PS3 outsells everything on the planet, it was still in last place for 3 years. That's a poor, poor start for the former champs any way you slice it.

But mistakes can happen, just look at Nintendo.

I definitely agree. I nearly bought a Virtual Boy back in the day. However, they learned from their mistake and marketed the devil out of the Wii. And they relied on word of mouth. And nongamers to ignite the fire.

Sony's biggest obstacle, in light of this recession we are in, is to make folks say 'I need to buy a PS3.' They need to make folks want a PS3 so bad they'd plop down $321 bucks to get one. And right now, I don't see Sony doing it and they desperately need to to be victorious this generation.

This. And it's a pretty risky move to just assume that, not only will people shell out $321 for a PS3, but that they'll also be interested in buying pricy peripherals and games.



heruamon said:
numonex said:
Small losses on PS3 hardware will be offset by increased software and accessories sales

Define samll?

Small losses = $50 or less per PS3 hardware system sold. PS3 sold around $300 on average now due to PS3 revisions. PS3 costs per unit rumoured to be around $340 to $350. So a $40 or $50 loss per PS3 sold. When all costs have been factored in.

An article stated PS3 now costs only $252 per unit to manufacture  but that does not take into account all the other costs involved such as storage, distribution, marketing, discounts, sales commissions etc.



Toshiba has said that their 40/45nm processor tech is ready but that Sony was late with it's RSX designs.

Now it is a possibility that the Slim was to brake to even once the RSX moved over to 45nm, but because Sony was late, they couldn't incorporate 45nm RSX into the PS3 slim units, and this is were the loss comes from...so it could only be a small loss as far as we know, and one that will disappear once the 45nm RSX makes it's way into the slims.



CGI-Quality said:
sega4life said:
CGI-Quality said:
@ Sega

And I'm sure people knew I meant for a console in one generation. You can pretend you didn't understand all you want...

? wtf are you talking about?


edit:

wait.. are you saying your this guy? from the reply I made above?

because thats what this the reply:

"but I guess after reading it a second time, I was talking about PS3, he was talking about the company.."

was for..

 

Ok, let's try this one last time:

When I said their first blunder, I meant their first major blunder, on a CONSOLE, in a specific generation, meaning all their mistakes with the PS3. The PS3 situation as a whole, not their entire track record. So to answer, this is "wtf" I'm talking about...

There maybe that will get somewhere. If not, oh well....

O that reply..


To say this is Sony's first blunder this gen is naive, every gaming company has many blunders no matter what gen it is.

I mean you said it your self, "I doubt the same will be repeated in the future" and I pointed out the Future Over Priced *New* Handheld..


but I'm sorry.. you meant, First Blunder, on this console, for this generation, for the month of August.. mybad

Mr.Baseball quote *here*

 

 

 

 



PS4 Preordered - 06/11/2013 @09:30am

XBox One Preordered - 06/19/2013 @07:57pm

"I don't trust #XboxOne & #Kinect 2.0, it's always connected" as you tweet from your smartphone - irony 0_o