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

I love users on messageboard forums who think they are business analysts. LOL



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I assume by "breaking even" they actually mean no more losses for the PS3 division.... which means they will start profiting, but the profit won't offset past losses till the end of gen, if at all [like XBox].



jhlennon1 said:
I love users on messageboard forums who think they are business analysts. LOL

 And I love users on message boards that post nothing of relevant value to the thread who think by their less-than-clever posts that they are demonstrating that they are somehow smarter than the people who think they smart.



I hate trolls.

Systems I currently own:  360, PS3, Wii, DS Lite (2)
Systems I've owned: PS2, PS1, Dreamcast, Saturn, 3DO, Genesis, Gamecube, N64, SNES, NES, GBA, GB, C64, Amiga, Atari 2600 and 5200, Sega Game Gear, Vectrex, Intellivision, Pong.  Yes, Pong.

eugene said:

http://www.videobusiness.com/article/CA6508789.html?industryid=47215

 

"The steps Sony is taking to bolster its game platform, moreover, are likely to make the cash drain worse in the short term. At $399 including a Blu-ray drive, Sony Computer Entertainment is taking an even bigger haircut on its entry-level console than it was before as it tries to buy market share. The company recently pushed back its estimate for when PS3 will reach breakeven until the fiscal year that ends in March 2009, and even that could be optimistic."

Ah, the rentier mind at work. Rentiers are all about short-term gain, and to hell with the social costs or morality of the transaction - they'd sell their own grandmothers, if they could make a 400% markup.

This notion that Sony is somehow third in the console biz is hilarious - the PS2 is still going strong, so Sony's total console market share is more like 40%, the same as Nintendo. Sony's multimedia and BluRay strategy has succeeded brilliantly - every dollar they lose in their PS3 division is coming back to them as two dollars profit in their display, BluRay and peripherals divisions. They're doing fine and will make tons of money over the lifetime of the PS3. 



kn said:
jhlennon1 said:
I love users on messageboard forums who think they are business analysts. LOL

 And I love users on message boards that post nothing of relevant value to the thread who think by their less-than-clever posts that they are demonstrating that they are somehow smarter than the people who think they smart.


Much like your post? lol.

And if I was trying to be smart I would have actually tried.

Unlike some though, I don't care nor worry about things I have no control over. Why should I care about Sony's gaming division losses? Even if I did care there is nothing I can do about it. I done my part, I got the system, I buy the games, so now I just sit back and enjoy the games that I know I will get over the next 4 years at least.



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jhlennon1 said:
kn said:
jhlennon1 said:
I love users on messageboard forums who think they are business analysts. LOL

And I love users on message boards that post nothing of relevant value to the thread who think by their less-than-clever posts that they are demonstrating that they are somehow smarter than the people who think they smart.


Much like your post? lol.

And if I was trying to be smart I would have actually tried.

Unlike some though, I don't care nor worry about things I have no control over. Why should I care about Sony's gaming division losses? Even if I did care there is nothing I can do about it. I done my part, I got the system, I buy the games, so now I just sit back and enjoy the games that I know I will get over the next 4 years at least.


Yes, that was intentional.  I'm fairly smart but I know there are others smarter than myself.  It's kind of like being rich.  There is always some richer (unless you are at the top of the Forbes list) and there is always someone smarter...

Why should you care about Sony's gaming division losses?  No real reason in a micro-sense, but in the macro, their losses can affect the longer-term trends in video gaming...  I've been a gamer since Pong and will continue to be a gamer and I like to see innovation.  Innovation comes from competition and a continuous string of health losses from the PS3 could end Sony's involvment in gaming in the future and severely limit competition.



I hate trolls.

Systems I currently own:  360, PS3, Wii, DS Lite (2)
Systems I've owned: PS2, PS1, Dreamcast, Saturn, 3DO, Genesis, Gamecube, N64, SNES, NES, GBA, GB, C64, Amiga, Atari 2600 and 5200, Sega Game Gear, Vectrex, Intellivision, Pong.  Yes, Pong.

kn said:
jhlennon1 said:
kn said:
jhlennon1 said:
I love users on messageboard forums who think they are business analysts. LOL

And I love users on message boards that post nothing of relevant value to the thread who think by their less-than-clever posts that they are demonstrating that they are somehow smarter than the people who think they smart.


Much like your post? lol.

And if I was trying to be smart I would have actually tried.

Unlike some though, I don't care nor worry about things I have no control over. Why should I care about Sony's gaming division losses? Even if I did care there is nothing I can do about it. I done my part, I got the system, I buy the games, so now I just sit back and enjoy the games that I know I will get over the next 4 years at least.


Yes, that was intentional.  I'm fairly smart but I know there are others smarter than myself.  It's kind of like being rich.  There is always some richer (unless you are at the top of the Forbes list) and there is always someone smarter...

Why should you care about Sony's gaming division losses?  No real reason in a micro-sense, but in the macro, their losses can affect the longer-term trends in video gaming...  I've been a gamer since Pong and will continue to be a gamer and I like to see innovation.  Innovation comes from competition and a continuous string of health losses from the PS3 could end Sony's involvment in gaming in the future and severely limit competition.


If there was a remote chance that Sony might pull out of gaming I would be concerned as well. But I have seen no evidence of that, in fact, gaming has become a big part of Sony's business and that Sony will attempt to correct the problem before they simply abandon everything. Sony are expanding their 1st party status which means that Sony are intending to stick around for the long term.

All that these losses will do is minimize their future risk taking and they will stick to developing much cheaper products. That's all it will do, nothing else.



If they get "Xbox 1" losses and no significant improvement from the multimedia (Blu-ray) side, they will exit the game business. You can't run a division at a loss because the rest of your company is profitable. If the Playstation brand's reputation and its big exclusives go, it will not even be worth having a "PS4".

You couldn't have given a better example to so soundly destroy your own argument. Xbox 1 losses? Microsoft's game division has never turned a profit, and yet here they are. Sega was a bloody trainwreck for most of its lifespan, yet it hung on until 2001.

One defeat isn't going to make Sony pull out of the game business, especially when just a few years ago it was their most profitable division.



As long as they can continue to pull costs down and the PS Store becomes more successful they should turn a profit.



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jhlennon1 said:

If there was a remote chance that Sony might pull out of gaming I would be concerned as well. But I have seen no evidence of that, in fact, gaming has become a big part of Sony's business and that Sony will attempt to correct the problem before they simply abandon everything. Sony are expanding their 1st party status which means that Sony are intending to stick around for the long term.

All that these losses will do is minimize their future risk taking and they will stick to developing much cheaper products. That's all it will do, nothing else.


Exactly.  Funny how the people who are worrying the most about Sony's fiscal future are the ones rooting for other consoles...