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Forums - Sony Discussion - Sony PS division has lost $4.7 Billion since launching PS3

thx1139 said:
@markers,

May be anecdotal, but we are not the only ones doing this. I know plenty of others doing this same thing. Blu-Ray is just not catching on and replacing DVD like DVD did with VHS. When DVD was overtaking VHS no one was talking about alternative delivery. Now alternatives are all the rage. It is easy to see that Blu-Ray will never be what DVD was.


Wasn't there a report stating that Blu-Ray had a higher attachment rate than DVD did at the same point in it's lifecycle?



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I doubt that the current rise in losses of the Network Svcs division can be blamed on Walkman and Vaio...especially considering the cost to redesign the PS3, and the $100+ price cut. You couple that with drastic drops in sales of the PS2 for hardware and software (both of which are highly profitable) in addition to a price cut to $99, and one can begin to see how there is a negative trendline for gaming. Of course, there is also the redesign of the PSP Go as well. Sony has stated that the PS3 will start to turn profitable in 2010, so we will simply to have see what they report in the coming quarters.



"...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

Sure is a lot of investment for Blu-Ray to be the leading format.

At least now MS and Sony have both now equally spilled their guts to get a foothold in the console war. Nintendo needs to join the party but I doubt that will happen.



It's just that simple.

MonstaMack said:
Sure is a lot of investment for Blu-Ray to be the leading format.

At least now MS and Sony have both now equally spilled their guts to get a foothold in the console war. Nintendo needs to join the party but I doubt that will happen.


Sony always puts alot on the line with new tech. They never think about the short term, they are always planning ahead of the competition.

Sometimes that gets them in trouble at first, but they are so big and stubborn that they can keep going til the competition can't fight anymore.



Sony PS division has lost $4.7 Billion in total over 4 years since the PS3 launched. The PS2 and PSP were making profits for most of that time. So the total amount lost on the PS3 itself would be considerably higher than $4.7 Billion.
The strong Yen accounts for some of the losses as well as the GFC and PS3 hardware being sold at a loss.
The quarterly financial reports for Q3 and Q4 of 2010 will be interesting to see whether there are any improvements being made in regards to the profitability of the Sony PS gaming division.