By using this site, you agree to our Privacy Policy and our Terms of Use. Close
GreyianStorm said:
Dgc1808 said:
Your calculations don't factor in the cost of keeping PSN up, resources for game developers, research and development, advertising, etc.

Is PSN not self-sufficient? Isn't PSN expected to have $500 million revenue this year (or maybe next year)? Surely Sony sees enough of that to cover dedicated servers for games, the store, downloads etc. Resources for game developers: Wouldn't that eventually come back as profit on the games in the future (so, KZ2's profits would be covering the resources for GT5, which would cover KZ3 etc...obviously not directly like that, but in effect). R&D would be extremely expensive yes, but what would Sony be R&Ding right now that would be costing $10s of millions per week? And advertising, I include that in marketing, which brings me back to one my main questions: Is the advertising *that* high?

 

Edit: Typo in opening sentence (Is PSN not self sufficient originally said "If PSN")

The revenue thing:

All that tells us is that PSN brings in alot of revenue. We don't know if this revenue covers the bill.

R&D:

How would I know? Companies like SONY, MS, Nintendo etc. ALWAYS have stuff in R&D. Alot of it just never sees the light of day. I'm willing to bet the PS wand would have been scratched if the Wii wasn't as successful as it is [it's been in development from ATLEAST 2004 so I'm pretty sure it was canned at one point until the Wii did what it did]. Also, they're ALWAYS working and looking at what they're going to do for the next installment of console HW. 



4 ≈ One