PS3 to turn a profit soon

[johnlucas]

FishyJoe said:

I borrowed this from Rolstoppable in another thread. It gives you an idea of how long it took for the PS1 and PS2 to start making money and how quickly the PS3 is wiping that money out.

http://www.sonet.co.uk/SonyInfo/IR/financial/ar/Archive.html

Sony Annual Reports Game Operating Income
YearEnd Mar 31 Yen(B)

2006 8.7
2005 43.2
2004 67.6
2003 112.7
2002 82.9
2001 (51.1)
2000 77.4
1999 136.5
1998 117
1997 57
1996 (5)

PS1 era (1996-2000) made 383B yen. PS2 era (2001-2006) made 264B yen.

PS2 *was* (and still is) profitable, but not as much as the PS1. Sony sold PS2 for too little to make as much as the PS1, before the next gen. box came along.

For Fiscal Year 2007 and 2008

Q2 (96.7)
Q1 (29.2)

2007 (232.3)

So far the PS3 era (2007-now) has lost (358B yen). So, they have now lost all they made on the PS2 (including what PS2 made the last year and a half), and are working on losing the PS1 profits as well.

Still all together for the last 12.5 years, Sony is up 289B Yen . At 115 yen/$ = $2.5B.

 

Wow.

This is scary.

I've heard of Sony losing half of what they made in the whole Playstation era before but seeing it spelled out like this REALLY puts it into perspective. Basically Sony has blown through about 7 out of 13 years of Playstation success in 1 year with the PS3. That's about $7 to 8 billion out of a total of over $14 billion made over THIRTEEN years blown through in ONE year.

That is not good. I am seeing the effects of Pyrrhic Victory all over this. They depended on dominance to pull in those numbers which did not truthfully reflect their market dominance.

The question you have to ask yourself is what will Sony do this year to hold on to what they made in the 13 years of the Playstation era? How are they gonna hold off Microsoft & its building aggression & can they even begin to answer Nintendo on any front or at least slow their tankroll?

I sure don't want to see reports of Sony losing all they made in the 13 years of Playstation at the end of 2008 because that will be simply depressing. And it will bring doom for the future of their games department.

Kaz had better steer this ship clear this year or I'm afraid for the worst.

What you put here Fishy Joe/Rol/Renar really puts it in perspective. Wow man.

John Lucas