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TheJimbo1234 on 01 April 2013
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slowmo said:
TheJimbo1234 said:
Nsanity said:
TheJimbo1234 said:
Nsanity said:
TheJimbo1234 said:
PS3 is more successful due to everything you list. The 360 had a head start, sales figures were boosted due to awful reliability, and MC lost a lot of profit due to warranty repairs.

Sony lost billions on the PS3 as well as marketshare.


Source?

http://www.joystiq.com/2009/10/30/ps3-has-lost-sony-4-7-billion-may-be-profitable-next-year/


Have you actually read the article or looked at the date, not to mention the obvious things such as the development of blu-ray was included in that hyped up figure which frankly should not be a R&D cost slapped onto the PS3? 


The figure also includes the profits of the PS2 and PSP in that era which will likely far outstrip the R&D costs of Bluray.  Also much of the R&D cost of Bluray was split between all the Bluray consortium, Sony didn't "invent" it themselves.  In fact much of the initial work was done when Toshiba were still inpartnership with them before the HD-DVD/Bluray divide.  The PS3 has lost Sony billions, it's a fact that is pointless arguing.  Sony seemed satisfied to lose billions to keep the Playstation brand viable for the future.

I did read that article and while it is old, it doesn't change the fact that it was true at the time it was written.  You also have to bear in mind that shortly after that article was published the global downturn occurred and the strong yen butchered profits on Sony's exports for the last few years.  It's unlikely Sony made much of that back although it's hard to tell too much for the last 12 months as there will be some R&D costs of the PS4 eating into the profits.

It is also a fact that the 360 has made more profit/less loss this generation even with the RROD debacle.  All in all your original post was awful and factually completely incorrect.

The PS3 has been succesful in sales...but grom the looks of how shoddy Sony is, sales success =/= profit....even though it really should. For exmaple, how the hell did Sony lose $2 B in 07? What the hell were they doing when every bit of R&D was split between other companies (IBM for the APU etc)? I am amazed they have bothered to make a new console and would be very intrested to see how they will turn a profit on this, or if consoles have now become dead due to dev costs being too high.

That being said, and I think Micro & Nintendo need to take note of this  http://www.vg247.com/2013/02/07/sony-financials-game-profits-down-86-4-in-q3/  , all the money is made in games, not hardware. A 15% drop in games = 86% drop in profit? How much does it cost then to make these consoles and what loss are you working at? No wonder no small companies try to get involved with consoles - it's retarded.