| vthokiesrmoo said: sony built the ps3 with about a 10 year life cycle in mind. The console has been out for 2 years and is about to start making profits on each console sold. Sony is not worried about what is happening with the ps3 at this point in its life and the gaming division at sony is certainly not the reason for the hirings or firings going on there. all you people think as if business is done day by day, these consoles are investments. sony's goal with their investment like any corporation is to have a positive net present value when its all said and done. With the ps3 breaking even soon and 8 years to go in its life it will most certainly have a positive NPV, thus is a successful investment, thus this topic is stupid and has nothing to do with the Playstation 3 |
Throwing in acronyms if you don't have a clue what you're talking about makes you look dumb.
NPV's are used for investment decisions. Obviously the PS3 project had a positive NPV at the time the decision to make it was made. Maybe they used a 10 year lifespan in their calculations and they probably based it on some 100 million units sold in that timespan.
Whatever they though is totally irrelevant now. You basically have everything wrong you can have wrong in a single post:
SCE has been making a loss for the past 2 FY's and is very likely to make a loss this FY. My guess is that the PS2 and PSP are profitable, hence the PS3 must be VERY unprofitable. Whether that's manufacturing costs alone, or also the higher development costs is irrelevant.
Ehm....that's why the fired the CEO of the Division?
Ehm, SCE is the most underperforming division BY FAR. It's the only division presenting a loss last year.
When all is said and done you don't have a NPV, you have a balance sheet that's positive or negative. In this case probably very negative. I guess you missed the news that the PS3 has managed to evaporate ALL profits from the PS2 era...
