bumidan said:
Ail said:
bumidan said:
I would like to join this discussion. Please refer to my thread:
http://www.vgchartz.com/forum/thread.php?id=30391&start=-0
Repost:
I want to get your opinion on the original numbers:
PS2 hardware - I assumed they make $15 per unit - do you have a different number in mind?
PSP hardware - I assumed they also make $15 per unit
PS3 - what is the hardware loss? I assumed $306
PS2 software - I assume they make $8 per unit
PSP software - I assume they make $8 per unit
PS3 software - ???
Basically, we have to assume 5 variable to come up with the 6th variable.
Based on those assumptions, then PS3 software LOST
$8.8 per unit on 57.9 million units sold
or a TOTAL of $508 million dollars JUST ON PS3 SOFTWARE ALONE.
Does that make sense? I ask you guys because I am not very familiar with Sony's numbers.
On the flip side, if you assume PS3 software makes money,
even at a modest $5 per unit or a total of $288 million
then
PS3 hardware lost an average of about $390 PER UNIT
Which is a likelier scenario in your opinion?
Sony Games LOSS - FY ending Mar 200 - $1.245 Billion USD
When replying, please let me know your assumptions of 5 variables, then the 6th variable can be calculated.
I can recalculate - very simply - using excel
NUMBERS FOR YOUR REFERENCE:
OPERATING INCOME
Unit Sales Unit Income Income
Hardware (Millions)
PS2 13.73 15 205,950,000
PSP 13.89 15 208,350,000
PS3 9.24 -306 (2,827,440,000)
Software
PS2 154 8 1,232,000,000
PSP 55.5 8 444,000,000
PS3 57.9 (8.77) (507,860,000)
(1,245,000,000)- THIS NUMBER IS CONSTANT
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I think the 8$ per PS2 software was probably true when last gen was still going however seeing how these days most PS2 games are selling new for 30$ or less I would suspect at this point Sony make less per PS2 game sold.
I think there is a huge cost that is not mentionned but I believe is wrapped under the gaming division financials.
Sony owns a lot of development studios ( many more than Microsoft for example) and most of those ( aside from Insomniac and naughty Dogs) have yet to release a PS3 game so those studios are currently costing a lot of money to Sony every quarter ( seeing the number of studios we are speaking over 100 million dollars a quarter..)
Then you have to add all the personel of the gaming division that are not developers in first party studios, this is probably a fairly decent cost too...
Then add the marketing budget of the gaming division, probably a decent number too.
I mean you have whole organizations like SCEE, SCEA that I believe are wrapped under the gaming division, this means those number cover stuff like Everquest, Everquest 2, Vanguard and others too..
Really it's nowhere near as simple as you make it look like to compute the loss per PS3 sold..
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@Ail.
Yes, you are correct. In this case, then if you assume that the loss per PS3 is less, then there is a huge loss of around $500Million Dollars tucked away somewhere.
This could be any of the things you mentioned, as well as possibly cost of maintaining PS3 online, etc.
The point is to make a simple analysis. It is reasonable to estimate the cost/loss/profit per item, because you usually include all other costs associated with a particular product, not just actual product cost.
For example, if you make a car but need to advertise to sell it, then the advertising cost is part of the cost of the car. You can not justify separating that cost from your financials.
And in this case, Sony reported only the PS2, PSP and PS3 figures in their statements - which if you read financial statements - means that these are the MATERIAL figures investors need to know to make investing decisions.
All other numbers may be too small or irrelevant - and therefore IMMATERIAL to the financial statement.
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