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Squilliam on 21 June 2008
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HappySqurriel said:
Squilliam said:
MikeB said:

 

 No. The PS3 IS a failure. A fantastic failure. 3 billion in the hole and they don't really have much to show for it. Actually I would put the price of that failure at between 5-7 billion dollars. Thats the difference between a successful PS3 and an unsuccessful PS3. Thats the opportunity cost factored in as well. Face it, it was a terrible design, they screwed up worse than Microsoft did! 70% market share - 23%, Billions in profit - Billions in losses.

Nintendo >>>>>>>>>> Microsoft >>>>> Sony as far as intelligent business decisions go.

 

Its actually worse than that ... The PS3 put the division $3 Billion and was one of the major factors to (dramatically) lowering the profitability of the Division for the two years leading up to its launch; that should work out to being close to a $5 Billion expense, and if the product was successful they should be able to make a couple billion dollars and fund the research and development of their follow up console.

 

 Damn, you're right... it depends how far forward you project the losses and if you factor in "good will" as a cost as well.

 so, $5 billion now? + another $5 billion easily that they could have earnt then this whole fiasco could have cost them a cool $10,000,000,000 - factoring in goodwill, profit/sales forgone, etc. Oh yea they also sold off their fabs as well.. probably to improve their cash position I bet.

I think there are some very nervious people in SCE headquarters...



Tease.