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Forums - Sales Discussion - Sony sees record $6.4 billion net loss, to take tax hit

logic56 on 11 April 2012
flagstaad said:
Galaki said:

Sony set themselves up to be seen as trying the loss-leader route. Of course, people are going to expect the same for PS4.

The question now is, Can they afford it again? and what will happen to their sales if they don't?

see Vita...

also going for a loss leading stragey does NOT mean you have to lose 250 dollars per-console, they can make a massively powerful console and only lose 25 dollars per console



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DirtyP2002 on 11 April 2012
logic56 said:
flagstaad said:
Galaki said:

Sony set themselves up to be seen as trying the loss-leader route. Of course, people are going to expect the same for PS4.

The question now is, Can they afford it again? and what will happen to their sales if they don't?

see Vita...

also going for a loss leading stragey does NOT mean you have to lose 250 dollars per-console, they can make a massively powerful console and only lose 25 dollars per console


I think the only manufacturer that is financially able to build a very powerful console and sell it at a loss is MS. They could really piss on everyone's parade by selling a much more poweful console than the Wii U and the PS3 for the same price. Of course this is always a high-risk move and the content (mostly games :D) have to show that as well. Otherwise MS might get in the situation Sony was in this generation.



Imagine not having GamePass on your console...

logic56 on 11 April 2012
DirtyP2002 said:
logic56 said:
flagstaad said:
Galaki said:

Sony set themselves up to be seen as trying the loss-leader route. Of course, people are going to expect the same for PS4.

The question now is, Can they afford it again? and what will happen to their sales if they don't?

see Vita...

also going for a loss leading stragey does NOT mean you have to lose 250 dollars per-console, they can make a massively powerful console and only lose 25 dollars per console


I think the only manufacturer that is financially able to build a very powerful console and sell it at a loss is MS. They could really piss on everyone's parade by selling a much more poweful console than the Wii U and the PS3 for the same price. Of course this is always a high-risk move and the content (mostly games :D) have to show that as well. Otherwise MS might get in the situation Sony was in this generation.

uhh see Vita??



Mr Khan on 11 April 2012
Zlejedi said:
I think they need to axe TV division completly.

It does seem to be the only problem child in there, but Japanese companies tend to be stubborn about what they feel their business is. Aside from the PlayStation and the Walkman (now a defunct brand outside of Japan), i'd say Sony is most synonymous with televisions.



Monster Hunter: pissing me off since 2010.

Jereel Hunter on 11 April 2012
Turkish said:
Carl2291 said:
The sooner apple buy the "PlayStation" brand, the better. Sinking ship.


 Apple has no history in gaming, they tried with Pippin and failed. Apple empire will fall, it will happen just like it happened to IBM, Microsoft, Sony companies that ruled the 80s and 90s.


Microsoft is a fallen Empire? Someone should tell them and their $20 Billion/year annual profit



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Zlejedi on 11 April 2012
Mr Khan said:
Zlejedi said:
I think they need to axe TV division completly.

It does seem to be the only problem child in there, but Japanese companies tend to be stubborn about what they feel their business is. Aside from the PlayStation and the Walkman (now a defunct brand outside of Japan), i'd say Sony is most synonymous with televisions.

Yeah it would probably hurt their pride very much.

 

But their tv offering suck - i got my 100Hz Panasonic few years ago for 750 euro when same model from them costed 1000 euro.



PROUD MEMBER OF THE PSP RPG FAN CLUB

BlkPaladin on 11 April 2012
zero129 said:
flagstaad said:
zero129 said:
This might be why Sony doesn't seem to be going all out with their PS4 (If the rumors are to be believed), as they want to make profit on it from day 1. Anyway i hope they can pull them selfs out of this mess.

I think it would be in their best interest to not sell a high powered console at a loss, maybe not with profit to be competitive, but at least not with a loss. I think the "leaked specs" could generate a nice and powerful console that can be sold between $400 and $450 without losing money, but I only hear complains that it should be a higher end machine at least 10x more powerful than a PS3 and Sony to take a $100-$150 loss on it.

Wit the rumored specs we could buy the parts and build a system using them specs for less then $400

CPU: A8-3850 APU price $120 (Sonys price about $60-80)

GPU: HD7650 $80 (Sonys Price about $30-50)(But we would need to use the 6650, as im about 90% sure you can't buy the 7650 as it seems to only be in some laptops etc, but the 7650 is just a re-branded 6650 so it doesnt matter).

4GB DDR 3 ram $20 (Sonys price about $10)

BluRay Drive $60 (Sonys price about $20-30)

Hard Drive 350GB $50 (Sonys price about $20-30)

Case $30 (Sonys price about $10-20)

Total for us to build $360 and total for Sony to build $150-220

So as you can see if the rumored specs are real it won't be costing Sony much at all to build a system with them specs. And if they Launch with a price of $300 they will be making a nice profit from day 1.


Motherboard, Power Source needs to be added to that. Plus any communication hardware such as wireless/bluetooth. Plus the case seems kind of low, since they are not going out and getting a PC case they have to have one made for the machine in the style they want.

 

On a side note those are the specs for my current laptop. Which costed about $1000 direct from HP. There will be about two years so the price sould go down to about $450-$500 by then. (I bought it in Feb '12 and I'm guessing a Nov '13 launch so 23 months.)



Paul on 11 April 2012
logic56 said:
DirtyP2002 said:
logic56 said:
flagstaad said:
Galaki said:

Sony set themselves up to be seen as trying the loss-leader route. Of course, people are going to expect the same for PS4.

The question now is, Can they afford it again? and what will happen to their sales if they don't?

see Vita...

also going for a loss leading stragey does NOT mean you have to lose 250 dollars per-console, they can make a massively powerful console and only lose 25 dollars per console


I think the only manufacturer that is financially able to build a very powerful console and sell it at a loss is MS. They could really piss on everyone's parade by selling a much more poweful console than the Wii U and the PS3 for the same price. Of course this is always a high-risk move and the content (mostly games :D) have to show that as well. Otherwise MS might get in the situation Sony was in this generation.

uhh see Vita??

What about the Vita? They are selling it at a loss and they are in huge financial trouble as a company. The Vita is also selling terribly right now, and Kaz had stated they would need to sell more than 70 million over it's lifetime in order for it to turn a profit after 3 years on the market.

The Vita is an example of what Sony is doing wrong as a business.



logic56 on 11 April 2012
Paul said:
 
*irrelevant misinformed non sense*

it's cheap to make, and is one of if not the most powerful handheld on the market right now...

User has been moderated for this post - Kantor



DirtyP2002 on 11 April 2012
Paul said:
logic56 said:
DirtyP2002 said:
logic56 said:
flagstaad said:
Galaki said:

Sony set themselves up to be seen as trying the loss-leader route. Of course, people are going to expect the same for PS4.

The question now is, Can they afford it again? and what will happen to their sales if they don't?

see Vita...

also going for a loss leading stragey does NOT mean you have to lose 250 dollars per-console, they can make a massively powerful console and only lose 25 dollars per console


I think the only manufacturer that is financially able to build a very powerful console and sell it at a loss is MS. They could really piss on everyone's parade by selling a much more poweful console than the Wii U and the PS3 for the same price. Of course this is always a high-risk move and the content (mostly games :D) have to show that as well. Otherwise MS might get in the situation Sony was in this generation.

uhh see Vita??

What about the Vita? They are selling it at a loss and they are in huge financial trouble as a company. The Vita is also selling terribly right now, and Kaz had stated they would need to sell more than 70 million over it's lifetime in order for it to turn a profit after 3 years on the market.

The Vita is an example of what Sony is doing wrong as a business.


do you have a link for that. And thanks for proving my point



Imagine not having GamePass on your console...