Xoj said:
DirtyP2002 said:
ph4nt said:
Xoj said:
DirtyP2002 said:
Xoj said:
DirtyP2002 said:
austin2359 said:
Sony launched with a lot of features and a very high price. The machine was ahead of its time. Sony preferred to keep the price high to limit losses, and wait to open itself to the mass market later with to price cuts. Sony could afford to wait to cut the price, because its technology was so far ahead of its time that the risk of obsolesce was non-existent. Plus if Sony took a larger loss and sold it at a competitive price, each price drop would no longer serve as an incentive to buy. Also, there is no way the expanded audience of casual gamers who may have bought the console at a lower launch price would buy enough games to make the price cut worth it for Sony's losses.
The machine has so much staying power that Sony can afford to slowly cut the price, increasing its sales in intervals and ultimately finishing ahead of its direct HD competitor. The fact that Sony still has room to cut the price and blu-ray will only get bigger, along with its increased reliability, virtually guarantees that Sony will finish at least in second this generation. I would give the Wii the edge over the PS3, but with its staying power, it isn't out of the question that the PS3 can close the gap at the end of 10 years. Nintendo has built up such a large lead, that even though it lacks the staying power, I think Sony may not catch it. But for making a HD console, Sony had the right strategy. And Sony already had a successful standard definition console with the PS2 so making another SD console would lead to market saturation.
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Okay, the PS3 is a good console, but this posts is full of fail. Sony kept the price to limit the losses... Well since the PS3 launched, the division lost 4.7 billion USD. That is quite a number. And this is limited? The losses ONLY made by the PS3 are probably around 6 billion. 4.7 reported + the profit of the PS2 and PSP for 3.5 years!
Sony MIGHT make it to 2nd place, but this won't change anything. The PS3 is a financial failure. Sure a good gaming-system, but for Sony it is a failure. Nintendo is printing money, MS is making a profit for more than 1 year now and in 1 or 1.5 years, the Xbox360 will be a profitable product overall.
There is no chance, that Sony will cover the losses made (and still making) in the future.
Believe me, if Sony had the chance to create the PS3 again, they would change their strategy.
If you look at this gen and you had to chose one loser, it would be Sony.
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the xbox lost almost twice ps3 lost. yet sony as whole remained profitable until recent economy crisis (caused by USA?). xbox brand its more than 7 billions in the hole as now.
u know second place it's loosing, it doens't matter both microsoft and sony lost tons of money. at much as a gamer enjoy the games, if they win or loose money it's just fanboy talk.
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No it did not. 4.2 billion. PS3 lost way more. 1.8 billion more and counting. And with the money lost with the Xbox and Xbox360, they build a whole new brand.
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xbox lost 6 billions and the 360 adds over 1 - 2 billions more.
Ps3 4.7 billions.
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It's 6 billion total, the original xbox lost 4.5 or something billion.
Plus the PS3 lost more than 4.7 billion, the Sony entertainment division as a whole lost 4.7 billion. The PS2 and PSP are making a profit, PS3 is not, and I think those have made more than 1.3 billion in profit these past 3 years. So Ps3 is probably over 6 billion in the hole.
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He alreday formed his opinion. Don't confuse him with facts. Major Nelson even said at his podacast that they lost 4.2 billion with the Xbox. The Xbox360 is profitable for some time now and should be profitable for its entire life very soon.
I just think it is stupid to say the strategy is paying off when one single product lost more than 6 billion USD. Must have been a pretty bad strategy then.
As I said before: with the losses the Xbox made, MS entered the industry and created a new brand. I can't think of any company that creates a new console to enter this industry and is profitable right from the start.
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both sony and nintendo did profit from the start sony even destroyed everything on their first try, again sony as a whole made money even with the ps3 looses until 2008 Q3. first in 14 years.
14 years of profits.
sony have divisions but they still are one company like microsoft, their profits are still count as one, microsoft entertaintment division lost tons of money, so this sony this gen, but that doesn't make neither console any less fun to play.
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Damn this is major spin! You did not answer the things I mentioned.
The first PS1 and PS2 were incredible successful, no doubt. Sony did an awesome job in that time. But with the PS3, they simply failed.
And why are you now bringing Sony as a whole company up? Comparing the entire company with MS... this is a battle you can't win.
And as I said before, the PS3 is a good console. It is fun to play, but a financial failure.
Sony started as the undisputed market leader. They were THE guy to beat. Look at them now, they need to cut the price sooner than expected, they need to launch the redesign sooner than expected, they need to take billions of losses just to still have a chance for the 2nd place while their both competitors are already profitable. The first place is out of reach already.
