The winner for hardware revenue in December is.....Sony

[Gazz]

Sullla said:

Gazz said:

This topic is about Sony making the best revenue off all manufacturers and with a high revenue they make the best chance of making a bit of profit. The PSP and PS2 both sold 1.1 million units each and with that they make up a lot for the (potential?) loss on the PS3 which sold 798K on it's own according to the article.

Like I said before, perhaps my numbers are way off but they atleast leave room for discussion and show I put effort into my reply instead of: Revenue minus more costs we automaticly assume means loss cause it's Sony. This topic is filled with those type of reactions.

Gazz, you can't possibly be serious with this comment, can you? Sure, in an abstract sense high revenue allows a greater chance of profit, but I don't think anything could be further from the truth in this particular case. Nintendo's financials today revealed that they made $1.2b profit on approximately $6b in sales. While Sony's gaming division may have revenue comparable or even higher than Nintendo's, there's absolutely no chance that their profit will be anywhere close.

If the PS2 and PSP do such a great job of offsetting the PS3's costs, how come Sony keeps losing so much money every quarter in their gaming division? Here are the recent numbers:

FY 2007  -232b Yen (-$2110m at $1 = 110 yen)
Q1 2008 -29.2b Yen (-$265m)
Q2 2008 -96.7b Yen (-$879m)

What amazes me is how Sony can post massive losses quarter after quarter on their gaming division, then continue to aggressively cut the price and bundle the PS3, while Sony fans insist with a straight face that Sony is profiting on PS3 hardware! Folks, something has to give somewhere!

Regardless, Sony's numbers are due out in a week. Should make for interesting reading.

Atleast someone is arguing with me with some actual numbers. It shows you put some effort into your comment and didn't post some 'Sony fanboys must suck it up and I post a general youtube clip to prove nothing I say' comment.

 I am bloody serious with my comment. Higher revenue allows a greater chance of profit as you so beautifully said it yourself. I admit it's an abstract view, but first and foremost it's a valid view and that's what matters. I never said that Sony might make a profit that Nintendo did, all I pointed out was that they might make a profit at this point and assuming they make a loss automaticly is narrowminded.

 I have seen no proof that the losses generated by Sony's gaming division are only based on the PS3 startup costs. Perhaps Sony investeds hundreds of millions into the new PSP model and they are also making a new PS2 model. In contrary to the other figures of previous quarters, the PSP suddendly started to sell like hot cupcakes and they may have made a huge profit. Once again, not saying it is true, but it is a possiblity you have to keep in mind.

 It's wrong to assume that Sony just stood still in these last couple of months and nothing has been changed in the PS production line itself. You can win and lose millions in the production process and it's fair enough to atleast keep those factors in mind.It's strange how everyone who tryes to look at this topic from a different perspective gets labeled as being a Sony fanboy.