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

Paul on 11 April 2012
logic56 said:
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...

 

http://www.pocketgamer.biz/r/PG.Biz/PlayStation+Vita/news.asp?b=related&c=30520)

The revelation was made by SCE CEO Kaz Hirai in an interview with Reuters, with turning a profit on the device within its first three years a prime target for the company.

To do that, Hirai believes PS Vita will need to surpass the 70 million units PSP has sold to date





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logic56 on 11 April 2012
Paul said:
logic56 said:
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...

 

http://www.pocketgamer.biz/r/PG.Biz/PlayStation+Vita/news.asp?b=related&c=30520)

The revelation was made by SCE CEO Kaz Hirai in an interview with Reuters, with turning a profit on the device within its first three years a prime target for the company.

To do that, Hirai believes PS Vita will need to surpass the 70 million units PSP has sold to date



what does that have to do with anything?

I thinks it's best to read the debate at hand before hand before juming in

and for the lulz: do you think that article is saying he thinks it needs to sell 70 million in 3 years to turn profit?



Paul on 11 April 2012
DirtyP2002 said:
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

It's above this post, someone else had previously linked to it in the thread. Illogical56 drives me nuts sometimes.



Paul on 11 April 2012
logic56 said:
Paul said:
logic56 said:
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...

 

http://www.pocketgamer.biz/r/PG.Biz/PlayStation+Vita/news.asp?b=related&c=30520)

The revelation was made by SCE CEO Kaz Hirai in an interview with Reuters, with turning a profit on the device within its first three years a prime target for the company.

To do that, Hirai believes PS Vita will need to surpass the 70 million units PSP has sold to date



what does that have to do with anything?

I thinks it's best to read the debate at hand before hand before juming in

and for the lulz: do you think that article is saying he thinks it needs to sell 70 million in 3 years to turn profit?

No I don't because that's not what the article says. It says the vita will have to surpass the sales of the PSP (most probably in it's lifetime on the market) in order to become profitable in the first 3 years of its existance. That's what the current CEO of Sony said, not me.

I was responding to your post in response to the other guy's when he stated that going forward, only MS will be able to absorb the losses of putting a very powerful console on the market at a competitive price. In response you said "uhh see Vita", which anyone with any ability to reason would notice that Sony should probably try to avoid in the future given the fact that they are currently losing billions of dollars.



logic56 on 11 April 2012
Paul said:
logic56 said:
Paul said:
logic56 said:
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...

 

http://www.pocketgamer.biz/r/PG.Biz/PlayStation+Vita/news.asp?b=related&c=30520)

The revelation was made by SCE CEO Kaz Hirai in an interview with Reuters, with turning a profit on the device within its first three years a prime target for the company.

To do that, Hirai believes PS Vita will need to surpass the 70 million units PSP has sold to date



what does that have to do with anything?

I thinks it's best to read the debate at hand before hand before juming in

and for the lulz: do you think that article is saying he thinks it needs to sell 70 million in 3 years to turn profit?

No I don't because that's not what the article says. It says the vita will have to surpass the sales of the PSP (most probably in it's lifetime on the market) in order to become profitable in the first 3 years of its existance. That's what the current CEO of Sony said, not me.

I was responding to your post in response to the other guy's when he stated that going forward, only MS will be able to absorb the losses of putting a very powerful console on the market at a competitive price. In response you said "uhh see Vita", which anyone with any ability to reason would notice that Sony should probably try to avoid in the future given the fact that they are currently losing billions of dollars

no that's what the article said Kaz said he would like for it to have sold more than the psp not that it needed to

and they not losing any money on selling the vita that's the point I've discussed this before I'm sure of it



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logic56 on 11 April 2012
kowenicki said:
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.


I'd say more than anything, including playstation and walkman, which is why Kaz has stated on numerous occasions that getting TV's right is his Number 1 priority bar none.

problem is... common thinking amongst the buying public is that they are expensive and not very good.

and even bigger problem is that they can't do anything to change that no matter what they try, I read it on a gaming forum



logic56 on 11 April 2012
kowenicki said:
logic56 said:
kowenicki said:
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.


I'd say more than anything, including playstation and walkman, which is why Kaz has stated on numerous occasions that getting TV's right is his Number 1 priority bar none.

problem is... common thinking amongst the buying public is that they are expensive and not very good.

and even bigger problem is that they can't do anything to change that no matter what they try, I read it on a gaming forum

well the even bigger problem is.... that its true.

exactly



flagstaad on 11 April 2012
zero129 said:
BlkPaladin said:
zero129 said:

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 spec for my current laptop.


True i forgot about them xD. But it shouldnt cost Sony too much for a Motherboad PSU and Wifi/Bluetooth. Lets say an extra $50-60?, cos remember Sony will be getting this stuff alot cheaper then we would as they will be buying millions of them.

And once Sony has the case designed and stuff i really can't see it costing any more then $10-20 for them to produce it.

You are missing a lot of stuff, but lets take a optimistic approach and say that ALL THE PARTS for the console cost $210 (seems like a good average of your prices for Sony taking really all the parts into account). After getting the parts you have to add:

-Research and Development

-Manufacturing

-Distribution to retailers

-Advertisement

-Retailers profit

and then you can add a profit for the company. Usually the additional cost go between $100 and $150, so just the console with the mentioned parts has to be sold for $310 - $360 before Sony can start making a profit of any kind. So they have to sell the console for $350 to get at least even or a minimal profit, and most likely for $400 to ensure a real profit.



mike_intellivision on 11 April 2012

Sony has some strong assets. It also has elements that are causing great problems for the companies bottom line.

The Playstation brand is a strong element. The PS3 currently appears to be a money maker. However, the PS Vita is not currently profitable and is not doing well. I don't expect it to be "killed" -- but I would not be surprised to see it "orphaned" to die a natural death. Meanwhile, the PS4 might either have to wait or be built to be profitable from the beginning. That would mean a smaller technological jump, which might not be bad since it would mean a lower price point and until people get Full HD TVs, too much more graphical power is probably pointless. But it also probably means Sony will not have the financial muscle to "guarantee" (purchase) third-party exclusivity. (The apparent shift of Monster Hunter Portable from Sony to Nintendo signals this may have begun).

Sony can survive. But it will have to be smart in what it does and what battles it fights. And it will have to give up something. Most of those changes will not be gaming related. But inevitably some will.

Mike from Morgantown



      


I am Mario.


I like to jump around, and would lead a fairly serene and aimless existence if it weren't for my friends always getting into trouble. I love to help out, even when it puts me at risk. I seem to make friends with people who just can't stay out of trouble.

Wii Friend Code: 1624 6601 1126 1492

NNID: Mike_INTV
Kasz216 on 11 April 2012
Millenium said:

Now that's just painfull, I hope Kaz isn't too litte too late, they can't afford two more bad years.

I wonder how much PS3's can be made for that kind of money.


I wonder if it will matter though.  I mean Sony is in some hugely unfavorable positions compaired to it's competitors.

It's best chance probably would to mimic apple and try and create a "Sony Infrastructure."   Like how you can play PS3 games on the Vita... but just try and make everything Sony connect together in easy ways that make sense.

However, that seems unlikely since Sony seems stuck in the nonsynergetic buisness ways of the past where you have a bunch of branches each branch head treats as their own personal fiefdom leading to things like Sony music in non sony movies,  Sony movie characters on non sony videogame systems... etc