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Forums - Sales Discussion - Do you think Sony will ever make a net profit from the PS3?

Vizion said:

What do you think?


 

Absolutely, the ps3 will most likely breakeven/slight profit this year, and make a net profit overall (offset 06/07 losses) by 2010/2011...PS3 should make a solid profit for years if it truly has a lifecycle until 2016.

Also, the ps3 helps bolster their main industry--electronics.

 e.g. I bought a 60" 1080p SXRD SOLELY because of my ps3.  That is a $2,800 sales Sony wouldn't have gotten if it wasn't for the ps3.

Also, as others have mentioned...Blu-ray will be HIGHLY profitable and that wouldn't have been possible w/o the ps3.  Not even remotely possible.



Well, I now only have access to a PS3 & 360...Plan on buying a wii soon (lol, if I can ever find one available!) but will probably wait until some of the major RPG's come out like Dragon Quest & Tales, etc.

Anyhow, I'm so far behind in games to play that I'm not in a huge hurry (lol, haven't even gotten a chance to finish God of War II yet!) 

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Well, I just thought I would clarify my point further ...

In order for Sony to break even on this generation they need to recover a pretty large sum of money from the money they have already lost in R&D, Marketing, Hardware Losses, and money lost in underperforming software; this would probably be in the $2 to $5 Billion range at the moment. Any action in the future which increases their losses, reduces their profitability or revenues (like a price reduction) would eliminate any chance of them ever breaking even.



Yes. If they continue to support it for 10 years as they have claimed.

But there is little point arguing imaginary numbers with people whose grasp of economics is slight and whose hatred of Sony is strong.



I don't think, PS3 is just a big help to sell all Sony HD products, and video games.

Nintendo is the only company wich make directly money with the Wii I think



Parokki said:
Not that I'm doubting you guys, but could someone give me a source for how much money Sony made with the PS2? It'd be nice to have more than "some very credible guys told me on a very credible forum" if I later quote the numbers and someone asks me where they're from. =P

If you have them handy, then I'm also interested in the same numbers for Nintendo and Microsoft (-4bn$ wasn't it?) as well, but don't strain yourselves for little old me.

I second this, although I trust Rols number I would like some form of source too.

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I will say maybe in 2012 depending on when they stop losing money. I see them losing money at least for all of 2008 and most of 2009. This will not be a profitable generation for Sony's video game sector.



 

 

Parokki said:
Not that I'm doubting you guys, but could someone give me a source for how much money Sony made with the PS2? It'd be nice to have more than "some very credible guys told me on a very credible forum" if I later quote the numbers and someone asks me where they're from. =P

If you have them handy, then I'm also interested in the same numbers for Nintendo and Microsoft (-4bn$ wasn't it?) as well, but don't strain yourselves for little old me.


Renar filtered out the most important information of the financial reports for Sony's gaming division, so I am just going to quote him. Credit to him for doing the work.

http://www.sonet.co.uk/SonyInfo/IR/financial/ar/Archive.html

Sony Annual Reports Game Operating Income
YearEnd Mar 31 Yen(B)

2006 8.7
2005 43.2
2004 67.6
2003 112.7
2002 82.9
2001 (51.1)
2000 77.4
1999 136.5
1998 117
1997 57
1996 (5)

PS1 era (1996-2000) made 383B yen. PS2 era (2001-2006) made 264B yen.

PS2 *was* (and still is) profitable, but not as much as the PS1. Sony sold PS2 for too little to make as much as the PS1, before the next gen. box came along.

For Fiscal Year 2007 and 2008

Q2 (96.7)
Q1 (29.2)

2007 (232.3)

So far the PS3 era (2007-now) has lost (358B yen). So, they have now lost all they made on the PS2 (including what PS2 made the last year and a half), and are working on losing the PS1 profits as well.

Still all together for the last 12.5 years, Sony is up 289B Yen . At 115 yen/$ = $2.5B.



Legend11 correctly predicted that GTA IV (360+PS3) would outsell SSBB. I was wrong.

A Biased Review Reloaded / Open Your Eyes / Switch Gamers Club

THX



Time to Work !

Amazing, in a single year they managed to nearly wipe out all the profits gained in the PS2 era.



Once again though...it is hard to measure the true losses. If blu-ray is very successful in the future, that will be because of the ps3. However, that won't be included in the ps3's #'s. Also, how much does the ps3 help Sony's other departments? e.g. HD tv's, etc.?
As I said, it's the only reason I bought my Sony HD tv. W/O my ps3, I wouldn't have bothered going HD or even getting a Sony if I did (probably would have gotten a Samsung or Toshiba)



Well, I now only have access to a PS3 & 360...Plan on buying a wii soon (lol, if I can ever find one available!) but will probably wait until some of the major RPG's come out like Dragon Quest & Tales, etc.

Anyhow, I'm so far behind in games to play that I'm not in a huge hurry (lol, haven't even gotten a chance to finish God of War II yet!)