Grimes said:
Loud_Hot_White_Box said:
Grimes said:
Loud_Hot_White_Box said:
Grimes said:
What about profits? Let's say MS pulls a profit and Sony posts another big loss, who really wins? I'm not saying that will happen, but it could. If you sell more but lose more money, it seems like a Pyrrhic victory. |
True, but MS is about $6 billion in the red all-time in the gaming industry, while Sony is 1-2 billion in the black still.
And by selling more consoles without too huge of a loss, they'll keep selling more and more software. I think they lose $50 per slim now or something...which is way less than they were losing earlier this gen and it's an amount they can make back and more. The Playstation line was in the black last quarter, last I heard on the matter.
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Sony's network product division, which includes gaming, lost $414 million last quarter. They were not in the black.
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I said the Playstation brand was in the black, last I heard.
You didn't mention the all-time profit numbers. All MS's gaming moves are a huge Pyrrhic victory, in other words.
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Sony mentioned that the game segment lost money in the quarterly report, so no the Playstation brand was not in the black.
And yeah, MS is losing money too.
Both companies are doing a pretty sad job at making money from video games.
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The Networked Devices Division includes more than just PlayStation. The division posted a loss (probably to do with the mass cutting of prices on Vaios, among other things), but PlayStation is proiftable and has been profitable since the end of the last fiscal year.
Times Online: It’s well known that Sony loses money on every PS3 it sells. Will that still be the case with the new machine?
Kaz: If you're just talking about the hardware alone, the quick answer is yes. That makes good headlines, but I don't actually know that that's the true nature of the business that we're all in, whether it's PlayStation, Xbox or the Wii. I think the better indicator is to look at the business as a whole platform, to ask: are you profitable in terms of the hardware, software and peripherals. And the answer to that question is yes on a gross profit level since the last fiscal year.
http://news.vgchartz.com/news.php?id=4931
