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theprof00 said:

WHY?

All things are pointing to Ps3 breaking even on one game or controller or less. It's even possible that with Home, Sony breaks even on every console sold since Home's release. So, why am I saying Sony Computer Entertainment is going to be in the red?

Because SCE is making money now, and with that comes a lot of the expenses that they were forgoing because of their money crunch. This means:

1. New commercials: There are about 3 Playstation commercials running around the media at the moment. This is 2 More than what they've been running throughout most of the PS3's lifetime.

2. R&D: Move to PS3slim. With any move to a new design, even if it uses cheaper materials, there are a lot of costs associated in it. New molds, new contracts with initial downpayments, new machinery, and so on.

3. New exclusives: As we have all been seeing, PS3 is aquiring quite a few new JRPGs and a lot of other exclusives. Almost every day I come and lurk on the chartz I see a new post about some new ps3 exclusive. What this suggests is that Sony is doing exactly what they used to do. They are helping to develop new exclusive IPs from the ground up with their own programmers. Not to mention that they have also dropped the cost of their dev tools by 75% or so. What this means is a lot of new games, but also a lot of expenses.

 

I actually think they may hit the black, but I've noticed a lot of movement within the company and it all points to increased spending. What do you think?

I have a few questions just for clarification:

1)  When you say "Sony" in the title, you meant SCE, right?  Clearly all legitmate forecast for this quarter have Sony as a company reporting a huge loss.

2)  You say this as if it is fact: "Because SCE is making money now" is your proof the estimations you are making in the previous paragraph?  Paragraph two, without solid links to back those statements up, are at best, guesses, not facts.

3)  As further proof are you suggesting the SCE is spending more money, because they are making more?  This argument is building on a previous argument, a previous argument that I think is estimation not fact, which weakens this argument as well.  Regardless, for months Sony has been towing the line that profitability is thier primary concern, but it sounds as if you are suggesting that they have already reached it, but decided to immediately go back in the red.

I think any real attempt at analysis on these boards should be greeted with respect, not hate, so I am NOT trynig to say, that your topic is garbage or anything like that.  The questions are concerns about how you arrived at your analysis, and I think there are some factors you may have left out.  I could be wrong though, and am willing to admit it, if you prove it so.