America Up!!

[Smashchu2]

CGI-Quality said:

Smashchu2 said:

FF_Fanatic said:

Metallicube said:
Gotta love Sony fans.. If PS3 sales aren't doing so hot, it must be supply constrained! Are people still going to be using this excuse in August?

Let's ignore the fact that both models have been readily available on amazon for several weeks now..

I think some people just refuse to believe that the post pricecut+slimline boost would ever decline back down to earth.

I think some people beleive to ignore the truth, you love ninty and x360 you always post negative things about sony and ps3, so move along

PS3 is in last place and has only recently do the units make a gross margin. BTW, the PS3 may still not be profitable. All that happened now is that Cost of Goods Sold is less then Net Sales. This means they will have a positive Gross Margin (or Contribution Margin) before deducting other cost.

Fact is that PS3 is doing badely and there is no if, ands or buts about it. I could write you a book about everything that is wrong about the PS3. It just isn't doing well.

Also, just looked at Amazon and they have 28 PS3s new. This is not a mass supply constraint and even if it was, it would be pathetic on all levels (Nintendo still outsold the other guys when they were supply constraint).

I am actually curious, how is the PS3 (currently) doing "badly"? HAS it done badly, yes. HAS it lost tons of money, yes. IS it it in last place, yes. HAS it corrected any of it's early issues, yes. IS it up YoY, yes. IS it making money, apparently, some say yes, others say no.

Perception is key. If you were to say the PS3 has had blunders, I would agree. Saying it currently isn't soing good, I'd disagree. In fact, if the PS3 is doing bad, and it's outselling the 360, what's that say about the 360? Is it doing miserably?

I don't care for who's on what side, but I'm not sure how the PS3 is doing bad.

You have to be kidding. You just said it yourself, the PS3 is doing bad. Heck, PS3s may still lose money if cost like salaries and advertisment and depreciation exceed the gross margin.It demands on what they are talking about, and that is never clear.

But let me put it into numbers: The last figures show the PS3s lost $18 a unit. Let's say the PS3 as at 34 million before all of them made money (NOTE:All PS3s sitting on shelves before the drop in production cost still lose money thanks to inventory keeping. Some PS3s shipped may still hold the sale loss on them).  Multiply the two numbers together and you get a lose of $576,000,000. The system has lost 576 million dollars. Now this is just the last figure. The cheaper PS3s may not have been shipped which may mean they lost 612 million dollars. It could even be more as $18 was the last figure, and probably the lowest one. This is a low ball estimate. To add insult to injury, if Sony is using the FIFO inventory method, they will be losing money for Q2 and 3 despite the production being cheaper (this is one instance where LIFO yeilds a higher net income).

Sony also does not increase in demand. The two jumps past the Wii the system has ever had have been price cuts. The first was the initial and and the other was the Slim. The Slim fizzeled out quickely, so this method is going to be weaker and weaker. In other words, Sony has to cut profitability to sell more units. They can't make money on these units unless they sell. So what do they do? Sell few and hope to make a little earnings, or drop the price again and risk the system's unit price being under it's unit cost. Basically, there is no win here.

No to mention that Sony's first party developers do poorly. The best selling games on the PS3 are from third parties which have sold around 5 million I beleive. This is a far cry from Microsoft's 10 million and Nintendo's 40 million for their top game(s). Sony has to pray that third party developers can make the software to sell systems.

If you want to make this really bad, Sony's "shortage" has the system still under the Wii and 360 (also pointing that demand has stayed consitant the whole time). When the Wii was supply constraiting, they were outselling the compition and still sold for $600 on Ebay.

So now try saying with a straight face that the PS3 is not a failure. People are becoming disalussional.