By using this site, you agree to our Privacy Policy and our Terms of Use. Close
Renar on 26 January 2008
Edit Thread
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.

 

 

Dbot,

The place you want to look is:

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

Specifically, the second quarter of 2007, which is the latest financial results from Sony, ending Sept. 30th, 2007.

In there you will find that for that quarter, Sony's gaming division, on revenues of 243Billion yen lost (96.7)By in operating income (ie basically, before taxes).

Meaning that after including any profits of the PS2 hardware and software, any profits of the PSP hardware and software and any profits on the PS3 software, the losses on the PS3 hardware plus any general overhead for the division, were enough to eat up all of those profits and wind up 96.7 billion yen in the hole. According to Sony's accountants.

 



Torturing the numbers.  Hear them scream.