heruamon said:
Playstation brand has been losing money over the past few quarters...It is hard to draw a direct comparison to Xbox, since M$ lumps it all under EDD...but we know M$ spent a pretty penny on getting out Zune HD, while zune old was losing money like crazy, and they have been spending alot of money developing the new mobile OS to compete with the iphone...so it's hard to make a direct comparison, for those who want ot. Nintendo on the other hand...you can...and you can basically slap an ATM tag on the wii. |
I think people are referring to this recent report. It's what I was remembering when I earlier said Playstation was profitable as of fairly recently. Someone then countered that but but Sony Networked Products, of which Playstation is a subdivision, wasn't profitable, which is kind of like you saying that the Zune and the rest of EDD is killing 360's numbers.
Kazuo Hirai, president and group chief executive of Sony Computer Entertainment, told The Times at the inaugural Gamescom convention in Cologne: “We felt it was the right time to pass on the benefits of the fact that we’ve been able to reduce the number of components and their sizes. We wanted to pass the cost savings on to our consumers in the new price point.”
Hirai admitted that Sony already loses money on each console it sells. “If you’re just talking about the hardware alone, the quick answer is yes, we do lose money on every one. 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 say are you profitable in terms of the hardware, software and peripherals. And the answer to that question is yes.”
Both Nintendo and Sony face particular problems in cutting hardware prices, as the Japanese yen has appreciated by over twenty percent against the pound in the past two years, which has had a huge impact on their profits and leading Nintendo to unfavourably raise the UK distribution price of Wii without increasing the RRP, cutting many independent retailers out-of-the-picture. Electronic Theatre will keep you updated with the latest developments from all three console manufacturers.
http://electronictheatre.co.uk/index.php/playstation3/playstation3-news/2765-sony-confirms-playstation-3-official-uk-rrp
