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Forums - Sony - PS3 Hardware Profitable

Grimes on 30 June 2010
Solid_Snake4RD said:
UncleScrooge said:

I haven't read through the whole thread because of the heavy discussions going on here so I might have missed this bit of information but does this include additional expenses (stocking, shipping, PSN, etc...) or is it just hardware?

Additonal costs would explain why Sony was still posting a loss in their latest financial report. And it still remains to be seen what the actual results will be if that is the case.


stocking comes in PS3 expense

and this includes it and the manufactury cost and shipping of the console and still making profit

PSN is not included

 

the lastest FINANCIAL REPORT was for 2009-2010 year where sony was losing on PS3 FAT,HUGE PS3 SLIM STOCKINGS,HEAVY DISCOUNT FOR SELLING OUT PS3 FAT BEFORE PS3 SLIM launch

PS3 SLIM was losing very low amount which could be overcome by Software sales but previous losses in the year were too much to recover by PS3 and SW sales so there was loss showed in the FINANCIAL REPORT

from JAN-MAR 2010 SONY started making under-$10 profit on PS2 SLIM HW too

From MAY 2010 end SONY started shipping 40nm RSX PS3's which make more profit now

Hardware is not the only expense however. Marketing, labor and other expenses contribute to the profitability equation. And of course currency fluctuation can also increase or decrease profits.

You are taking limited pieces of information and jumping to a conclusion. That is a poor analysis.



Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.

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Solid_Snake4RD on 30 June 2010
Grimes said:
Solid_Snake4RD said:
UncleScrooge said:

I haven't read through the whole thread because of the heavy discussions going on here so I might have missed this bit of information but does this include additional expenses (stocking, shipping, PSN, etc...) or is it just hardware?

Additonal costs would explain why Sony was still posting a loss in their latest financial report. And it still remains to be seen what the actual results will be if that is the case.


stocking comes in PS3 expense

and this includes it and the manufactury cost and shipping of the console and still making profit

PSN is not included

 

the lastest FINANCIAL REPORT was for 2009-2010 year where sony was losing on PS3 FAT,HUGE PS3 SLIM STOCKINGS,HEAVY DISCOUNT FOR SELLING OUT PS3 FAT BEFORE PS3 SLIM launch

PS3 SLIM was losing very low amount which could be overcome by Software sales but previous losses in the year were too much to recover by PS3 and SW sales so there was loss showed in the FINANCIAL REPORT

from JAN-MAR 2010 SONY started making under-$10 profit on PS2 SLIM HW too

From MAY 2010 end SONY started shipping 40nm RSX PS3's which make more profit now

Hardware is not the only expense however. Marketing, labor and other expenses contribute to the profitability equation. And of course currency fluctuation can also increase or decrease profits.

You are taking limited pieces of information and jumping to a conclusion. That is a poor analysis.

labour expenses,marketing,other were already being taken care off.you think they were just making PS3 till now without labour and other expenses.marketing was also being taken care off.last FALL 2010 SONY had a $200m marketing campaign

currency fluctuations will happen but how much can they happen at max,even if they sell even and don't make loss like before,they will profit atleast

i did not take any limited info,i was just replying to the guy anyways



Jirakon on 30 June 2010

Well, it's one thing to start making a profit after 4 years, and it's another to make up for those years in the time remaining. Even if it stays around for 6-8 more years, it doesn't seem like the amount of profit they're making now is even comparable to the amount they've been losing per console so far.

That said, I don't think Move costs much to make, so that will probably help them out a lot more than their console profit.



"Jesus said to him, 'I am the way, the truth, and the life. No one comes to the Father except through me.' " ~John 14:6 (NKJV)

Solid_Snake4RD on 30 June 2010
Jirakon said:

Well, it's one thing to start making a profit after 4 years, and it's another to make up for those years in the time remaining. Even if it stays around for 6-8 more years, it doesn't seem like the amount of profit they're making now is even comparable to the amount they've been losing per console so far.

That said, I don't think Move costs much to make, so that will probably help them out a lot more than their console profit.

yeah they might not be able to recover but BLU-RAY will live on which made most of the loss and make profit for SONY for years to come

 

and yes MOVE costs very less,its the same as dualshock3 with a glowing ball so it couldn't cost alot more.they make alot on the standalone acceseries



Kynes on 30 June 2010

Solid_Snake4RD = http://en.wikipedia.org/wiki/Polytetrafluoroethylene

Everything slips



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Solid_Snake4RD on 30 June 2010
kowenicki said:
Solid_Snake4RD said:
Grimes said:
Solid_Snake4RD said:
UncleScrooge said:

I haven't read through the whole thread because of the heavy discussions going on here so I might have missed this bit of information but does this include additional expenses (stocking, shipping, PSN, etc...) or is it just hardware?

Additonal costs would explain why Sony was still posting a loss in their latest financial report. And it still remains to be seen what the actual results will be if that is the case.


stocking comes in PS3 expense

and this includes it and the manufactury cost and shipping of the console and still making profit

PSN is not included

 

the lastest FINANCIAL REPORT was for 2009-2010 year where sony was losing on PS3 FAT,HUGE PS3 SLIM STOCKINGS,HEAVY DISCOUNT FOR SELLING OUT PS3 FAT BEFORE PS3 SLIM launch

PS3 SLIM was losing very low amount which could be overcome by Software sales but previous losses in the year were too much to recover by PS3 and SW sales so there was loss showed in the FINANCIAL REPORT

from JAN-MAR 2010 SONY started making under-$10 profit on PS2 SLIM HW too

From MAY 2010 end SONY started shipping 40nm RSX PS3's which make more profit now

Hardware is not the only expense however. Marketing, labor and other expenses contribute to the profitability equation. And of course currency fluctuation can also increase or decrease profits.

You are taking limited pieces of information and jumping to a conclusion. That is a poor analysis.

labour expenses,marketing,other were already being taken care off.you think they were just making PS3 till now without labour and other expenses.marketing was also being taken care off.last FALL 2010 SONY had a $200m marketing campaign

currency fluctuations will happen but how much can they happen at max,even if they sell even and don't make loss like before,they will profit atleast

i did not take any limited info,i was just replying to the guy anyways

can make MASSIVE differences... thats the point.

how massive do you think the fluctuations will make in PS3 cost?



Solid_Snake4RD on 30 June 2010
Kynes said:

Solid_Snake4RD = http://en.wikipedia.org/wiki/Polytetrafluoroethylene

Everything slips


EVERYTHING slips but to a limit



Solid_Snake4RD on 30 June 2010
kowenicki said:
Solid_Snake4RD said:
kowenicki said:
Solid_Snake4RD said:
Grimes said:
Solid_Snake4RD said:
UncleScrooge said:

I haven't read through the whole thread because of the heavy discussions going on here so I might have missed this bit of information but does this include additional expenses (stocking, shipping, PSN, etc...) or is it just hardware?

Additonal costs would explain why Sony was still posting a loss in their latest financial report. And it still remains to be seen what the actual results will be if that is the case.


stocking comes in PS3 expense

and this includes it and the manufactury cost and shipping of the console and still making profit

PSN is not included

 

the lastest FINANCIAL REPORT was for 2009-2010 year where sony was losing on PS3 FAT,HUGE PS3 SLIM STOCKINGS,HEAVY DISCOUNT FOR SELLING OUT PS3 FAT BEFORE PS3 SLIM launch

PS3 SLIM was losing very low amount which could be overcome by Software sales but previous losses in the year were too much to recover by PS3 and SW sales so there was loss showed in the FINANCIAL REPORT

from JAN-MAR 2010 SONY started making under-$10 profit on PS2 SLIM HW too

From MAY 2010 end SONY started shipping 40nm RSX PS3's which make more profit now

Hardware is not the only expense however. Marketing, labor and other expenses contribute to the profitability equation. And of course currency fluctuation can also increase or decrease profits.

You are taking limited pieces of information and jumping to a conclusion. That is a poor analysis.

labour expenses,marketing,other were already being taken care off.you think they were just making PS3 till now without labour and other expenses.marketing was also being taken care off.last FALL 2010 SONY had a $200m marketing campaign

currency fluctuations will happen but how much can they happen at max,even if they sell even and don't make loss like before,they will profit atleast

i did not take any limited info,i was just replying to the guy anyways

can make MASSIVE differences... thats the point.

how massive do you think the fluctuations will make in PS3 cost?


not sure... but the amount of revenue sony gets from the PS3 in europe just dropped by 18%.

yes but atleast PS3 losses will stop what i mean



Grimes on 30 June 2010
Solid_Snake4RD said:
Grimes said:
Solid_Snake4RD said:
UncleScrooge said:

I haven't read through the whole thread because of the heavy discussions going on here so I might have missed this bit of information but does this include additional expenses (stocking, shipping, PSN, etc...) or is it just hardware?

Additonal costs would explain why Sony was still posting a loss in their latest financial report. And it still remains to be seen what the actual results will be if that is the case.


stocking comes in PS3 expense

and this includes it and the manufactury cost and shipping of the console and still making profit

PSN is not included

 

the lastest FINANCIAL REPORT was for 2009-2010 year where sony was losing on PS3 FAT,HUGE PS3 SLIM STOCKINGS,HEAVY DISCOUNT FOR SELLING OUT PS3 FAT BEFORE PS3 SLIM launch

PS3 SLIM was losing very low amount which could be overcome by Software sales but previous losses in the year were too much to recover by PS3 and SW sales so there was loss showed in the FINANCIAL REPORT

from JAN-MAR 2010 SONY started making under-$10 profit on PS2 SLIM HW too

From MAY 2010 end SONY started shipping 40nm RSX PS3's which make more profit now

Hardware is not the only expense however. Marketing, labor and other expenses contribute to the profitability equation. And of course currency fluctuation can also increase or decrease profits.

You are taking limited pieces of information and jumping to a conclusion. That is a poor analysis.

labour expenses,marketing,other were already being taken care off.you think they were just making PS3 till now without labour and other expenses.marketing was also being taken care off.last FALL 2010 SONY had a $200m marketing campaign

currency fluctuations will happen but how much can they happen at max,even if they sell even and don't make loss like before,they will profit atleast

i did not take any limited info,i was just replying to the guy anyways

 

Labor, marketing and other costs are in no way fixed. Especially with the problems going on at Foxconn, big changes could lie ahead.

Currency fluctuations can be huge, the Euro has fallen over 10% vs the yen in a couple months.



Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.

Grimes on 30 June 2010

Ok, reading the original article again, nowhere does the Sony executive say they are making a substantial profit, that is the words of the person writing the article.

He didn't say the PS3 was currently making a profit, only that they will cover the costs "this year" which could mean the calendar year (dec 2010) or fiscal year (mar 2011).

He also says, "We aren't making huge money" which means they are probably close to break even which could be a slight profit or loss.

Now I'm not saying that the PS3 won't be profitable. I'm just saying you shouldn't overread into what what actually stated by the Sony executive.



Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.