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makingmusic476 on 13 December 2008
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BengaBenga said:
Louie said:
Guys, why exactly should Sony cancel the Ps3? Sure they are going to lose money on it but Microsoft lost much more on the original Xbox and I guess the PS3's sales as a Blu-Ray player make somewhat up for it.

I highly doubt they are going to cancel it. That would be much more expensive in the end.

 

Well, cancelling the PS3 (and I agree that that would mean the complete division, maybe minus PSP) would save Sony loads and loads of money. They can sell most of their development houses (they have a lot) and keep the profitable ftranchises (like GT and GoW) which will get the company massively in the black.

The PS3 done its job as the device that deliverd the victory against HD-DVD, without the loss making SCE division there would be much more liquidity to fund the HD battle versus formidable competitors like Philips and Samsung.

I DON'T THINK THIS WILL HAPPEN, but you asked why they would to it. There are definitely benefits for Sony to kill SCE. That Microsoft lost more on the Xbox is irrelevant. MS has always had a much better balance sheet and their goal for the Xbox wasn't profit, but a way into the livingroom. Not to mention thatXbxo didn't cost anywhere near the insane 3 billion + Sony has lost so far on the PS3. (All the profits of the PS2 - the most successfull console ever - gone in just 2 years).

 

 

Most of SCE's franchises are profitable these days.  SCEWWS is probably the most profitable part of SCE.  Even crappier titles like Heavenly Sword break a million (the exceptions being Lair and Folklore, the former being a flop of epic proportions, and the latter probably costing little to develop.  Oh, and the NBA series sells like crap as well).

Next year looks to be their biggest year yet.  Many of the titles they've been pumping money into over the past few years are finally getting released (Killzone 2, InFamous, White Knight Chronicles all hitting by May, as well as Demon's Souls in Japan), and thus finally bringing in revenue to offset those costs.  Throughout the first two years of this generation, Sony had plenty of titles in development but very few releases (the only SCE title released in the first six months of 2008 was GT5 Prologue).  Next year, Sony is looking to have a steady stream of releases throughout the entire year.

Edit:

And yes, the Xbox DID cost MS well over 3 billion.  Add in the 360's expenditures, and they're at over 6 billion in losses:

http://www.neogaf.com/forum/showthread.php?t=111003

Of course, they're making a profit now, so it's all good.  ^_^