Does Anyone Actually expect the PS3 to Outsell 360 this Xmas?

[goddog]

DMeisterJ said:

starcraft said:

DMeisterJ said:

starcraft said:

Magnific0 said:

I stand by this unrefutable truth:

Microsoft already made their huge move (under $200 X360), and they WON'T have (read CAN'T without mutilating their Games's Division) a price cut in ANY territory until very likely 2010. If during the next 12 months they drop the price of any of their SKUs by as little as $50 it'll be undoubtedly a fire sale, 'cause no one, NONE, would reduce the price of a product as such an alarming fast rate it it wasn't deep in trouble.

However, Sony still has a price-cut move left and I believe they're saving it for next-year when Microsoft won't be able to do nothing of the kind to counter it. MS is definitely expecting to bank hard on this Christmas, specially with Gears of War 2 gracing their holiday lineup. Gears 2 + low hardware price = winning combo, no? We will see January 1st if Microsoft won convincingly this X-mas or if on the contrary, their calculations will cost them an early exit from this generation war.

Your unrefutable truth is supremely refutable.

Microsoft's game division made a substantial sum of money last quarter, whereas the PS3 lost a TRUCKLOAD.

Even with all the cuts they have already made, Microsoft is in a better position to cut prices AGAIN than Sony is right now.

True, but it's hard to draw any clear conclusions from how much money the 360 really made, seeing that it's all lumped into the EDD, who knows what the 360 really did.  Well, MS does, but we don't know.

I think general consensus has always been that the Xbox 360 division make up the overwhelming majority of profit from EED.  Doesn't the Zune lose Microsoft money?

In Sony's case however, it is the opposite.  We KNOW the PS2 and PSP are cash cows, and yet the PS3 eats into ALL their profit AND still causes several hundred million dollar loses.

PS2 used to be a cash cow.  No argument that it probably makes money on hardware, but with falling software totals, the PS3 probably pushes the most in software dollars for the company now.  PSP may or may not make money on hardware.  There's been no indication of whether or not it was sold at a loss at first, and no news of revision of internal chips, all we have seen is the Slim/Lite when they added more RAM.  And the PSP software is laughable.  And PS3 hardware is sold at a loss, so let's clarify:

PS2:

Sold at a profit (extremely likely), Software is falling.

PSP:

Sold at a profit (unlikely-moderately likely), Software is horrible.

PS3:

Sold at a profit (lol, no), Software is on the rise, and more expensive than PS2.

What this tells us is that while PS3 being sold at a loss does eat into the profits, it made up for that for moving almost as much software as the PS2, but for ten dollars more.  So we can't solely blame the losses of SCEA on the PS3, it's as much PS2s fault for not selling more, and PSPs fault for not selling hardware.  So I'd have to disagree with your last statement.

@ Zune comments

We don't know if the Zune loses them money or not.  We also don't know that the XBOX and the 360 make up most of the profits.

you believe the zune, which constantly has models go on clearence.  the product that must give money from hardware sales to music companies, which does not make money back on music (mainly due to volume, if they could get subscriptions up and aount for 20% of the market they would be fine) and though even though its the 3rd largest mps player, still does not have a double digit market share is turning a profit.

on top of the zune, the mac software division, which though has had headcount cut down still does not make money for them sales are good, but have never been very good. MS mainly keeps this department open to avoid anti trust cases, and have trimmed away all departments that dont produce a product that makes money aka why explorer on make is 5. something and msn messenger  lags behind on mac as well.

and then there is surfaces which is there two still not for sale still racking up losses and they raised the launch price recently to try and sell it at a minimal loss its 14k now, these are the things that keep the edd division down, otherwise profit would be much grater 

oh also part of the losses during the xbox generation were the acquisition of  software emulator that made windows run on osx they bought it durring the g4 erra, but within a year the g5 began, and due to hardware changes the software became junk, they lost a good bit of money on it and to this day are contractually obligated to provide support for it (ends in 2010). there is where a good chunck of change went then.

you are right on one thing though edd needs to be reshuffled to show what each divsion in it does where now it hides the loses on different projects, if i were a share holder i would want to know

 

also on sony ps2 you have awinner 2 software sales should see a steep decline with open sourcing it, that does pint though to massive profits through hardware if they are willing to give up the software cow and keep making ps2s. sony forsees this as a big hit in india and china. 

the psp most likely makes money, or they would end the device and replace it with one less prone to software piracy, continual revising of the psp points to its value to them too keep sales and most likely margins up

the ps3 software is most likely the best part of the ps3 and will be for the next year  they are getting close to the point where they can post losses with the ps3 and still turn a profit on software. this quarter will be very telling as to how far along that is, if they post a profit, you will see the ps3 price drop no latter than march if they do not, and the sales of ps3s drag profits down and are not offset by games, it might not come till after the 360s in october.... though that can play very well into the sonys hands, it extends the amount of time they have to make profit, while it makes the 360s planned cuts look desperate, and it makes sony look in control to its share holders by taking more than a year to drop the price, it will also blunt the ms price drop masking it entirely, and kill gains made by halo recon...

or thats how i see it