Sony May Post Biggest Loss in 4 Years on PlayStation 3 Consoles

[johnlucas]

ramberk said:
haha PWNED. The writing is on the wall... Anyone that saw what happened at E3 2006 could have predicted what is happening now to Sony and what will happen to Sony in the future. Let me quickly repeat what I wrote in a different thread. In order for Sony and MS to survive in the video game console business, they both need to totally dominate the console market and they need consumers to buy lots of new, expensive games. Both companies need this because they invested so much money on these powerful consoles. But unfortunately for MS and Sony, neither of their consoles will totally dominate the market in this console generation. The writing is on the wall... The Wii is expanding the market. The PS3 and 360 are fighting each other over a smaller piece of the pie. Gamers are tired of sequels and rehashes, so they are buying less new games. Not to mention that PS3 and 360 games are more expensive then Wii games. The Wii has a higher attach rate then the PS3. Game devolpment costs have been skyrocketing and getting worse with the development costs of the PS3 and X-Box. Developers who focus on making a handful of blockbuster titles for the PS3 and 360 are going to get a rude awakening when their games don't sell enough to cover the high costs of development. Without Nintendo, the Wii and the DS we would have had another video game industry crash like in the early '80s. But instead of getting a flood of cheap, low quality crap games, we're getting a smaller storm of expensive, high quality but recycled games. The PS3 is simply too expensive. The games are all rehashes (albeit, pretty ones). The dev costs are too high. Devs will have a much harder time recouping their development costs and making a profit. Large portions of this industry lost their mind.

Wise people exist on planet earth as evidenced here.

It's BEEN obvious for those who were paying attention. E3 2006 was just the back of a pimphand to Sony. Sony became a mark for the business as they say in pro wrestling. They bought their own hype. It's hurting them tremendously. Their best bet is to hang on until next gen. That's the BEST option. Just survive to #2 position and try to break even to have another go for a PS4. This gen is a lost cause and more and more bad news will be following I hate to tell you.

If Sony wants to remain in this business, plug the leaks and try to salvage what's left. If not, investors may not pony up for another go 'round.

John Lucas