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Forums - Sony - Sony plans on breaking even with PS3 March 2009

fkusumot on 03 December 2007
MikeB said:
Meanwhile they will benefit from increased Blu-Ray and HDTV sales for their other devisions due to the PS3.

So you're saying Sony's bottom line is going to improve because of Blu-Ray and HDTV sales or was there some other benefit? 



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Rath on 03 December 2007
johnsobas said:
Rath said:
March 2009?

I doubt it to be honest, the PS3 has lost ridiculous amounts up until now and I expect it to keep losing money per unit well into next year - I'd be suprised if they posted a profit from their games division before quarter 3 next year.
I expect that if they do finally break even on the PS3 it will not be before march 2010.

Mind you the PS2 can't have broken even until quite late in its life either?

the PS2 had 1 unprofitable quarter, can't remember exactly but it was either 200 or 400 million in the red, then the next quarter it was already making money. The PS1 was offsetting some of it, but the PS2 and PSP are doing the same thing for the PS3 now.


 Are you sure? I remember Sony was loss leading last generation as well and only made around 2Bil off the PS2...?


Meh, maybe I'm wrong.



johnsobas on 03 December 2007
Rath said:
johnsobas said:
Rath said:
March 2009?

I doubt it to be honest, the PS3 has lost ridiculous amounts up until now and I expect it to keep losing money per unit well into next year - I'd be suprised if they posted a profit from their games division before quarter 3 next year.
I expect that if they do finally break even on the PS3 it will not be before march 2010.

Mind you the PS2 can't have broken even until quite late in its life either?

the PS2 had 1 unprofitable quarter, can't remember exactly but it was either 200 or 400 million in the red, then the next quarter it was already making money. The PS1 was offsetting some of it, but the PS2 and PSP are doing the same thing for the PS3 now.


 Are you sure? I remember Sony was loss leading last generation as well and only made around 2Bil off the PS2...?


Meh, maybe I'm wrong.

yes i'm sure, they lost money for 1 quarter, and i think they made up all that money the next quarter, or at worst the quarter after that.  Yes the PS2 made just over 2 billion ( i think 2.3 billion), and now the PS3 has lost every cent the PS2 made plus a few more hundred million to boot.  If someone would just bring out the financial statement to prove me right i would appreciate it, i can't seem to find it.

edit: omg i've reached 1337, i gotta cherish it for a while



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Rath on 03 December 2007

Dont post again John! You just reached 1337.



*~Onna76~* on 03 December 2007

Blu Ray, Blu Ray, bla, bla, bla, bla. I want some freaking more games Sony! Like er...RPG, where the heck are they?!



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MikeB on 03 December 2007

@ fkusumot

So you're saying Sony's bottom line is going to improve because of Blu-Ray and HDTV sales or was there some other benefit?


HDTV is the future for consumer electronics, but consumers need a reason to upgrade, high quality movies and games provides such a reason.

Sony's HDTV devision reported good profits, HDTVs according to research tops the US wishlist for Christmas and the PS3 was the most desirable high definition games console, more desirable than a standalone high definition movie player (ranked 10).



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eugene on 03 December 2007

The problem with HD tv's being the future is that Sony is trying to sell Blue ray and the PS3 today. As of today, HD tv's still does not have mass market penetration although it is growing fast. Another problem is consumer education, most hd tv owners think they are watching in hd even when they are watching a regular dvd movie on their hd tv. The PS3 was in essence too ahead of its time. Many PS3 and Xbox 360 owners today use their consoles on standard tv's in essence not taking advantage of its HD features at all and vice versa. Microsoft did the same mistake in putting a hard drive in every Xbox. It was indeed the future but ahead of its time. One generation too early as many people didnt see a need for 8 gigs of storage at the time.



FinalEvangelion on 03 December 2007

This is really not news. They said this a while back. Looking at his last statement about how 3 years ago, the gaming division counted for 70% of the profits - that was 3 years ago. Now, the other divisions are doing great and they have effectively switched. Correct me if I'm wrong, but I think Sony is having the most profitable year in a while. Their digital cameras, movies, televisions, and laptops are raking in the profits.

Several years ago, they were facing heavy competition from Toshiba and Samsung on their television front. Same with apple on their portable music department.

As far as HDTV penetration is concerned, this year's Black Friday and holiday season is the time when HDTVs go from early adoption phase to early majority phase. Expect a huge transition in the next year or two for HDTVs. Many of my college friends bought / or will be buying an HDTV in the next several months.

As much as many members here wish for it, don't expect them to withdraw from the gaming division this generation. With the PS4, I expect them to make a system for $300 to $400 that breaks even from the start.



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eugene on 03 December 2007

We're specifically talking the business of the Playstation 3, not all of Sony. Yes, its true, all of Sony is making money. If they were not, thats a whole different problem for them.



misteromar mk4 on 03 December 2007
johnsobas said:
by being profitable i'm assuming they mean stop losing more money, otherwise this is unbelievable by any stretch of the imagination. There's no way PS3 will ever make back all the money it lost.

Is Sony saying they will continue to lose more money for another year and a half? That is ridiculous, they are already in the red something like 2.5-3 billion dollars.

Thats the way I understand it. They lose alot per console made now, so even we they get to this point of making money on it, I cannot see it being much, maybe only $10-$20? So even though by that time they have stopped losing money, it aint gonna make anything near what their losses.

 Not to mention the competition dropping prices and forcing them to do the same, They are losing exclusive games, left, right and center and I dont see devs rushing to develop on the console with lowest user base and highest dev cost.



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