Do you think Sony will ever make a net profit from the PS3?

[Sorrow880]

rocketpig said:

Sorrow880 said:
Once again though...it is hard to measure the true losses. If blu-ray is very successful in the future, that will be because of the ps3. However, that won't be included in the ps3's #'s. Also, how much does the ps3 help Sony's other departments? e.g. HD tv's, etc.?
As I said, it's the only reason I bought my Sony HD tv. W/O my ps3, I wouldn't have bothered going HD or even getting a Sony if I did (probably would have gotten a Samsung or Toshiba)

While you are right, this brings us into very tricky math that none of us will ever know the answer to for certain.

Remember that Blu-ray up to this point has also been a financial burden on Sony. There is no way their current sales are making up for R&D costs, advertising (who pays for the Blu-ray PS3 commercials... SCE or the Blu-ray division?), and a whole slew of other factors.

Considering that it's still far from certain that Blu-ray will actually be a success in the market (there's always the possibility that it will be the next LaserDisc) and how much Sony went in the hole to make the format viable, things are very much in the air.

If Blu-ray does succeed, it will certainly offset the losses on the PS3... But it could take years. Hard to tell, really. We just don't have enough information on the subject.

I agree wholeheartedly...There are a lot of "ifs"....like "if" blu-ray is successful...and "if" it lasts for "x" amount of years, etc. (And as NJ5 brought up, if they are getting royalty payments for each blu-ray sold, how much per disc? etc.)

 There are no gaurantees for profitability, I just wanted to point out that many are being VERY narrowminded when they discuss the ps3 and profitability (or lack thereof).

Unfortunately, the TRUE loss or gain on the ps3 may never be determined because its effects are so far reaching.

The PS3 itself, software, blu-ray (which IF successful is a direct result of the ps3), brand name, TV sales, etc., etc...

Brand names bolster sales for the company as a WHOLE.

In layman terms...I own my own business and go to a few convention shows each year.   The one show cost around $12,000.  I NEVER sell anything directly at the show, so is it a $12,000 loss?  Directly to the books and eyes, yes, it's a loss.  But is it truly?  The brand recognition and advertising from the show MAY result in many sales for my business over the next few years, but it is impossible to measure.  Overall though, I feel promoting company name is well worth it.  This is just one of the extra ways the ps3 supports Sony's business as a whole.

The blu-ray media is another whole separate agenda, but COULD possibly make the console business seem small down the road, the losses insignificant according to many analysts such as Michael Pachter.

Sony's other divisions COULD see similar boosts due to the ps3,e.g. increased HD tv sales, increased blu-ray player sales, increased software sales, increased stereo/home theater equiptment sales, etc...  It's nearly impossible to measure.