Sony - The Confusion

[albionus]

Solidar said:

HappySqurriel said:

Solidar said:
I have a theory that Sony put a Blu-ray player in the PS3 for the sole purpose of trying to win the HD war. I think Sony is more worried about winning that war than making the PS3 successful. Sony will make a lot more money if Blu-ray wins than they would on the PS3, no matter how successful it is. There are a lot more people that watch movies than there are people that play games. Plus, most people buy a larger library of movies than they do games...

I have said since well before the PS3 launched that I couldn't see how Sony could be more profitable from Blu-Ray than from theoritical profits from the PS3; they probably make 10 to 20 times as much revenue from the licencing of a third party PS3 game than they would from the licencing off of a Blu-Ray movie. I honestly believe that Sony never saw the risk in selling a console for $600 and believed that people would line-up to pay it in record numbers; essentially they thought they could easily win the HD war because 30 Million gamers would buy the PS3 by the end of 2007 because gamers love the Playstation brand.

Um, Sony would make more money off Blu-ray because all the companies that want to make Blu-ray products, hardware AND software, have to pay royalties to Sony.

Sony isn't the only company in the bluray coalition so they would only get some fraction of the royalties.  As for profits, the PS3 has dug a huge hole in Sony's ledgerbook.  Prior to 2004 when PSP costs began, Sony made around $660 million a year on video games.   Starting in 2005 when PS3 costs kicked in Sony has made (in millions$) 404, 75, -1,969, and is aiming for close to -1,000 this year.  Adding those together means Sony has lost about $5 billion in potential profit from the PS3 already.  Until profit returns to more normal $660 million range Sony will continue to fall behind.  Is bluray going to bring in $6 billion (to account for future losses) alone?  I very much doubt it.  That's not to even mention lost return on investment Sony could have gotten from their video game division profits that will end up totalling in the billions.  I got the numbers from NeoGAF last night by the way.

Sony would have been much better off making the PS3 a poor man's HD system that still looked better than the Wii on SD and selling bluray seperately on its own merits.  I've thought that from the moment we heard the PS3 would cost at least $500.

As for Hus, assuming that is the same Hus, he's been banned many a time before.