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Forums - Sales Discussion - Sony's gaming unit lost $443 mil 3Q

DRJ on 09 April 2007

PS2 had the luxury of no real competition when it launched. Sony doesn't have time to get its act in gear. Unless they want to wait till Wii and 360 both have a 10M lead on them.



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Kwaad on 09 April 2007
DRJ said:
PS2 had the luxury of no real competition when it launched. Sony doesn't have time to get its act in gear. Unless they want to wait till Wii and 360 both have a 10M lead on them.

 You do know the PS3 closed the gap from almost 7million... to about 6million... All the while getting the worst press a gameing console has ever received.

I doubt the 360 will be ahead of PS3 in Q3 2008. 



PSN ID: Kwaad


I fly this flag in victory!

Hus on 09 April 2007
Erik Aston said:
Its funny seeing people saying "Sony is a big company! These losses are part of the plan!" Riiiiight. They've got MS and Nintendo right where they want them. The plan all along was to have 2 billion in losses over one year, with no end in sight, reach 50% of their initial sales goal, make dangerous cost-cutting decisions like dropping full backwards-compatability and their "cheap" SKU soon after launch, all while losing exclusivity on key franchises left and right, and getting outsold by at least one competitor in every region of the world--two in the largest market. I can tell... They're about to spring the trap! Watch out when all those 1st party mega-franchises come out! Gran Turismo!! ... erm... SOCOM?... Ratchet?... Uh... EyeToy?... Everybody's Golf? Yeah, bitch. Console war over.

LMFAO

 the PS3 dev and launch costs have already been offset by strongers then expectes sales by Sony Electronis division.

 Spiderman 3 alone will bring it a good 500/750 million in pure PROFITS.

 



reverie on 09 April 2007
Erik Aston said:
Its funny seeing people saying "Sony is a big company! These losses are part of the plan!" Riiiiight. They've got MS and Nintendo right where they want them. The plan all along was to have 2 billion in losses over one year, with no end in sight, reach 50% of their initial sales goal, make dangerous cost-cutting decisions like dropping full backwards-compatability and their "cheap" SKU soon after launch, all while losing exclusivity on key franchises left and right, and getting outsold by at least one competitor in every region of the world--two in the largest market. I can tell... They're about to spring the trap! Watch out when all those 1st party mega-franchises come out! Gran Turismo!! ... erm... SOCOM?... Ratchet?... Uh... EyeToy?... Everybody's Golf? Yeah, bitch. Console war over.

Seriously, Eric, how about putting a at the end of your posts?

Anyway, as Shane mentioned, Sony took a small loss with the PS2
in 2001, but overall the system made huge profits of about $2 billion:




Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.

Alacrist on 09 April 2007

Microsoft:

Revenue US$44.2 billion (2006)
Operating income US$16.4 billion (2006)
Net income

US$12.6 billion (2006)

 

Sony:

Revenue $63.980 billion USD (2006)
Operating income$1,604 million USD (2006)
Net income$1,058 million USD (2006)

 

Nuff said.



 

  

 

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staticneuron on 09 April 2007

NO NO NO!! What are you people doing?!?! Using these numbers and facts...... Just close your eyes and listen to us.... Sony is a small company, they didn't plan for this, their pockets are not as deep as microsoft, and they are way in over their heads with the PS3. Now repeat..... the PS1 and PS2 were flukes!

 



Games make me happy! PSN ID: Staticneuron Gamertag: Staticneuron Wii Code: Static Wii - 3055 0871 5802 1723

Arcturus on 09 April 2007
Alacrist said:
Microsoft:
Revenue US$44.2 billion (2006)
Operating income US$16.4 billion (2006)
Net income

US$12.6 billion (2006)

 

Sony:

Revenue $63.980 billion USD (2006)
Operating income$1,604 million USD (2006)
Net income$1,058 million USD (2006)

 

Nuff said.


What exactly are you trying to show with these figures?



reverie on 09 April 2007

Actually looking at Sony's past numbers made me realise how modest their margin is on the games business. Between the release of the PS2 and the release of the PS3 (FY01-FY06) they made ¥265 billion on sales of ¥5089 billion. That's a profit margin of only 5,2 %! In this expanding industry and with them being the market leader one would expect at least 15 %. How much of a drag have the PSP and PS3 really been?



Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.

Arcturus on 09 April 2007
reverie said:
Actually looking at Sony's past numbers made me realise how modest their margin is on the games business. Between the release of the PS2 and the release of the PS3 (FY01-FY06) they made ¥265 billion on sales of ¥5089 billion. That's a profit margin of only 5,2 %! In this expanding industry and with them being the market leader one would expect at least 15 %. How much of a drag have the PSP and PS3 really been?

Why would one expect Sony to earn a profit margin of 15%? Are you basing this on some sort of industry average or are you just picking numbers out of the air?



Alacrist on 09 April 2007
Arcturus said:
Alacrist said:
Microsoft:
Revenue US$44.2 billion (2006)
Operating income US$16.4 billion (2006)
Net income

US$12.6 billion (2006)

 

Sony:

Revenue $63.980 billion USD (2006)
Operating income$1,604 million USD (2006)
Net income$1,058 million USD (2006)

 

Nuff said.


What exactly are you trying to show with these figures?


People were talking about how much money each company was making, and how revenue is nothing profit is what matters, meaning even though Sony makes alot of money they don't have as much to spend. And they don't make as much profit. They brought in more money than Microsoft by 20billion dollars but Microsoft a made 11billion dollars more profit than Sony did. Meaning that they have more money even though Sony made more revenue.