PS3 Strategy is Starting to Pay Off

[NJ5]

-ku- said:

NJ5 said:

austin2359 said:
At the end of 10 years I think Sony will make a profit if you consider blu-ray's victory and software.

This has come up before... I don't have the links at hand now, but if I remember correctly Sony would have to sell an insane amount of BR discs to every single human being in developed countries to even come close to recouping PS3's losses.

The royalties on movie discs are actually not high at all... nothing compared to game software. And even with game software, the PS3 has already lost more money than the PS2 made in profit.

In short, it's not gonna happen.

 

WTF so currently the PS3 is at a 4.7 billion dollar loss...

And Ps2 was pure profit so let's say on average the first 80 million or so ps3's made a 50 dollar profit= 4 billion

the next 50 million maybe made 20 dollars = 1 billion

and so we can assume the PS2 as a system made 3- 5 billion on the console alone

And GT series alone has been name a billion dollar franchise... but that away from the point.

Sony has sold nearly 1.5 billion peices of CD software and at 5-10 dollars profit for sony= 5- 15 billion

And let's throw in another 500 million in head stets and other accesrioes

 

So sony possibly made 5-25 billion dollars in those years because sony stock was valued at 150 even with a stock split.

 

So no they didnt drain 6th generation funds PS3 cost 3 billion to devolop so it's at a lost of between 4.7-8 billion.

So if it took 3.5 years for 5 billion dollar debt than in twice the time it should pay off because by 720 release 360 support will be cut off PS3 support wont so if it take twice the time to pay off sony will make a profit in it's 10 PS3 year or less.

 

Your estimates are way off... in its best PS2-era year, Sony Computer Entertainment had a $924 billion profit, and the total profit is nowhere near your figures:

http://www.vgchartz.com/forum/thread.php?id=57802&page=1

Besides, the PS3 is not at a 4.7 billion dollar loss. That's SCE's total loss since the PS3 got launched, so it includes PS2/PSP profits made in the past few years.

As if that was not enough, it's not expected that the PS3 will get anywhere near PS2's success, which raises the question of how it can get anywhere near PS2's profits.

PS: You forgot to include costs such as employee salaries, marketing, and so on.