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nightsurge on 28 May 2009
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WereKitten said:
Smashchu2 said:

...

The facts are clear as day. The company is losing the company millions (the gamecube was profitable), Sony is not in the game industry (the whole goal of the Playstation line was to disrupt computers so they are not tied to the industry in any other way), the company itself is in bad time (Nintendo never was), and the the mind behind it (Ken Kutaragi) is now gone. Investors will probabyl demand to end the Play Station experiment if it doesn't show profitability soon. The system wont have a long life since the Wii will gain more attention overtime and as owners become increasingly bored with the HD twins. The end of Sony sounds more plausible.

So let me understand something. They spent billions in R&D. The hardware is right now crossing the hilltop of profitability, and the software is making them money.

You say that "Sony is not in the game industry" - weird, it certainly looks so - but now that they can make money out of the trojan horse they put in the living rooms, out of digital content and BluRay royalties and services, the investors will "demand to end the PlayStation experiment"? And what, close the PS3 fab sites, fire the first party developers and 1) renounce to the revenue and 2) renounce to the living room? What is the business sense of that?

If by crossing the hilltop of profitiability you mean still losing $50 per machine then you're right.

Also, Sony is still predicting another 1 Billion loss for next year, so losses involved with currency, the PS brand, and other areas of their business are still very much a big issue.

Oh and isn't Sony cutting their suppliers in half?  Won't that cause a lot of strain on the others and possibly have quite a negative affect?

And Kingdom Hearts 3 won't matter.  It is one game.  One game doesn't change the game just like 100 games haven't changed the situation this generation.