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Forums - Sony Discussion - How are Sony losing so much money on gaming?

Sony is losing way more than $50 per ps3 sold. With the recent price cut, Im sure that the losses are a little more than $100 per ps3. Just look at the latest financial report (Q2 2009 I think), the ps3 division ( including other products) loss more than 600 million dollars. Nobody now if their first party games did recover the production cost, Uncharted could have sold 2 millions copies, but we dont know if the game was profitable.



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Sony is not losing any money on the ps3...they are investing....in the future.......now....believe!!!



8888brocoli123 said:
Sony is losing way more than $50 per ps3 sold. With the recent price cut, Im sure that the losses are a little more than $100 per ps3. Just look at the latest financial report (Q2 2009 I think), the ps3 division ( including other products) loss more than 600 million dollars. Nobody now if their first party games did recover the production cost, Uncharted could have sold 2 millions copies, but we dont know if the game was profitable.

According to a lot of articles (just google PS3 cost), they almost loose nothing right now at 299$.



Considering Sony have said they expect to hit the break even point in manufacturing versus sale on each PS3 by March, I don't see them losing much at all on each PS3 currently. I bet it's already down to ~$30.

Now to turn a profit on the PS3 itself...that will probably take at least 1.5-2 years.



Icyedge said:
8888brocoli123 said:
Sony is losing way more than $50 per ps3 sold. With the recent price cut, Im sure that the losses are a little more than $100 per ps3. Just look at the latest financial report (Q2 2009 I think), the ps3 division ( including other products) loss more than 600 million dollars. Nobody now if their first party games did recover the production cost, Uncharted could have sold 2 millions copies, but we dont know if the game was profitable.

According to a lot of articles (just google PS3 cost), they almost loose nothing right now at 299$.

And according to other articles, including the one mentioned earlier in the thread, Sony is losing 100$ just on manufacturing for the Slim. Based on Sony's previous reports I'd say they are probably losing something - maybe in the range of 50$ to 100$ per manufacture. Add in shipping and who knows?



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dhummel said:
Icyedge said:
8888brocoli123 said:
Sony is losing way more than $50 per ps3 sold. With the recent price cut, Im sure that the losses are a little more than $100 per ps3. Just look at the latest financial report (Q2 2009 I think), the ps3 division ( including other products) loss more than 600 million dollars. Nobody now if their first party games did recover the production cost, Uncharted could have sold 2 millions copies, but we dont know if the game was profitable.

According to a lot of articles (just google PS3 cost), they almost loose nothing right now at 299$.

And according to other articles, including the one mentioned earlier in the thread, Sony is losing 100$ just on manufacturing for the Slim. Based on Sony's previous reports I'd say they are probably losing something - maybe in the range of 50$ to 100$ per manufacture. Add in shipping and who knows?

Your probably reading article dating from a while ago man. Most article release after the Slim state that sony almost doesnt loose anymore. Hence according to CEO statement manufacturing cost (not counting shipping and packaging) are at or should be at around 250$ in the near future.

http://en.wikipedia.org/wiki/PlayStation_3

Wikipedia (you also reference to other article at the bottom of the wikipedia page): Since the system's launch, production costs have been reduced significantly as a result of phasing out the Emotion Engine chip and falling hardware costs.[213][214] The cost of manufacturing Cell microprocessors has fallen dramatically as a result of moving to the 65 nm production process,[214][215] and Blu-ray diodes have become cheaper to manufacture.[213][216] As of January 2008, each unit cost around $400 to manufacture;[217][218] by August 2009, Sony had reduced costs by a total of 70%, yielding about $250 per unit.[219][220][221

 

We are not too sure about the actual amount because there was no cost confirmation ever from Sony, not even the starting manufacturing cost. But loosing 50$-100$ per console is highly unlikely. I guess that they will prolly officially reveal after the holidays that they dont sell at loss anymore.



I'll wait for the financial reports...they will provide some clearcut info, eventhough I'm sure alot of people on this site will try to spin spin spin.



"...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..."

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@icyedge - Sony is nowhere near making money on the ps3 bro.

In their earnings report last quarter sony said hardware is NOT profitable and they lose 10-20% of the retail cost. The psp and ps2 are profitable. The ps3 losses are eating up all their profits.

Sony does not expect their games division as a whole to be profitable until 2011.

http://kotaku.com/5408318/sony-outlines-gaming-turnaround-sees-ps3-profitability-in-2011



BoneyBoy said:
@icyedge - Sony is nowhere near making money on the ps3 bro.

In their earnings report last quarter sony said hardware is NOT profitable and they lose 10-20% of the retail cost. The psp and ps2 are profitable. The ps3 losses are eating up all their profits.

Sony does not expect their games division as a whole to be profitable until 2011.

http://kotaku.com/5408318/sony-outlines-gaming-turnaround-sees-ps3-profitability-in-2011

as a whole meaning all systems make profit, there is nothing stopping the game division making a profit now even with loses as long as profts from everything else outways the PS3's which they should be able to do.



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