ZyroXZ2 said:
MoHasanie said:
ZyroXZ2 said:
I didn't read all the pages, so forgive me if what I'm about to say has either been already answered, or already addressed but...
I think the OP has a point. The PS4 by itself is probably a loss, so selling 4.2m of them didn't equate to profit in the gaming division on its own. The PS3 probably accounted for a large part of profits, as I have no doubt each PS3 is sold for profit at this point, and since the PS3 had some major releases on it (GTA V, GT6, etc.), I wouldn't be surprised if Sony's excellent PR was smart enough to say "hey, they won't be able to tell what the difference is, our gaming division has profit, let's focus the profit celebration on the PS4!".
Then they all high-fived as the internet gobbled it up and fanboys decided without any financial evidence that the PS4 is profitable. ^.^ |
But if the PS3 accounted for the profits, why hasn't the games division made similar sized profits in previous quarters when the ps3 sold more?
I think the games division did well thanks to the 2 million new PS Plus subscribers.
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Because cost of production always goes down over time. The margin of profit for the PS3 only grows with time, like all systems. When the margin of profit gets large enough, it's followed by a price drop. Over time the margin of profit grows again, and further price drops continue. This is the cycle for almost ALL electronics hardware until it reachs EOL... Only Apple somehow has marketed itself in such a way as to just replace the product with a newer one rather than making the older one more attractive with a lower price point... Apple is evil like this, lol
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Lower manufacturing profits happen for everything but the games division had more than a 400% jump in profits. In order for your theory to make sense, Sony would have had to lower manufacturing costs of the ps3 by 400% and continue selling the same amount which is not true since the PS3s shipments were way down.
