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Game_boy said:
dbot said:
Game_boy said:

 

The real factors are software sales and sustained hardware profit.

PS2 has low software sales, PSP has abysmal and PS3 is good... relative to the tiny userbase.

PS3 loses massive amounts of money, PSP makes some money (less than a DS) and PS2 likely has razor margins. The net result is massive overall losses.

Finally, PS2 is declining and since neither PS3 nor PSP will fill that void, overall profit trends are negative not positive.

Therefore, it doesn't matter that Sony technically sells the most consoles as their influence on the market is very small and declining.

 


Please provide your source for the statement "PS3 loses massive amounts of money." I read this statement a lot on this site and am curious what it is based on? I am not saying it is false, but I would like to understand what it is based on.

"Therefore, it doesn't matter that Sony technically sells the most consoles as their influence on the market is very small and declining."

I think these numbers show that Sony is serving 2 markets. The casual gamer market is served by the PS2 and competes with the Wii. Obviously the Wii dominates this market, but to sell 9 million consoles with 8 year old technology is pretty impressive. Sony is also doing well in the high definition gaming market. They are within a 1/2 million sales of the 360. (The 360 had a far superior game library in 2007). I don't think these numbers support your theory that Sony's influence on the market is small and declining.

 

 

 


Sony is losing money. Sony has low software sales. Sony is losing in each market segment it is in. Sony's products are either declining ior remaining constant in sales. Therefore, Sony has little influence over the video game market. Selectively quoting figures won't change that. 

As for PS3 losing money, after the PS3's launch iSuppli calculated a single PS3 cost $800+ to produce without factoring in marketing, development and distribution costs. Sony sells PS3s to retailers for slighly less than $499 or $399. A 50% drop in price in just over a year is impossible. The real proof, however, is that Sony is losing and expects to further lose many multiples of 10^9 USD. That loss can only come from selling a product at a massive loss, and so the PS3, PSP and/or the PS2 must lose massive amounts of money.


Do you have any updated figures?  Average standalone Blu-ray player at launch was $800, now it is $350.  Sony is now offering a single sku(granted some regions have a color option) that has fewer usb ports, no memory cards, no software emulation, and a removed emotion engine.  I would agree that both Sony and MS lose money per console sale, but I think you may have exagerated the loss.



Thanks for the input, Jeff.