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Forums - Sony - DOWN PERISCOPE: Sony to drop PS3 to 299$

NJ5 said:



I don't think it would be short-sighted at all for an investor to disagree with such a price cut. The PS3 is already beyond the point of realistically being able to make a net profit for Sony (see note below). Therefore, they must try to keep losses at a minimum from now on, and doing 3 price cuts in a timeframe of few months is either no way to do it, or a very controversial way of doing it!

Note: If you want proof of the above claim, here it is; the PS3 has already lost more money for Sony than they ever made with the PS2. There was a thread proving this, based on official data taken from Sony's fiscal reports.

 

(rolls eyes at the first bolded sentence of pessimism, plus the note that isn't actual proof.)

Sounds like ludicrus to me. For one territory, it seems possible with the likely suspect being the states I can see them suffer a large loss there.

Otherwise, no... just... no.

Feel welcome to post the findings here from that mentioned thread though.



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 Consoles: Wii & PS3.

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rukusa said:
NJ5 said:



I don't think it would be short-sighted at all for an investor to disagree with such a price cut. The PS3 is already beyond the point of realistically being able to make a net profit for Sony (see note below). Therefore, they must try to keep losses at a minimum from now on, and doing 3 price cuts in a timeframe of few months is either no way to do it, or a very controversial way of doing it!

Note: If you want proof of the above claim, here it is; the PS3 has already lost more money for Sony than they ever made with the PS2. There was a thread proving this, based on official data taken from Sony's fiscal reports.

 

(rolls eyes at the first bolded sentence of pessimism, plus the note that isn't actual proof.)

Sounds like ludicrus to me. For one territory, it seems possible with the likely suspect being the states I can see them suffer a large loss there.

Otherwise, no... just... no.

Feel welcome to post the findings here from that mentioned thread though.


Not going to happen, since the search function doesn't work. The financial reports are always total figures, not territory-based, so forget that theory.

If you really want to be sure, you can visit Sony's financial page and download the reports, they're public:

http://www.sony.net/SonyInfo/IR/

 



My Mario Kart Wii friend code: 2707-1866-0957

More specifically, go here:

http://www.sony.net/SonyInfo/IR/library/ar.html

You can see the performance of the gaming division in each year. Several people have gone through the reports, added PS1/PS2/PS3 era figures, and concluded precisely what I claimed above. You too can do the same if you really care about having definitive proof.

Fact of the matter is that Sony didn't make that much money from the PS2, especially considering how big its userbase was. Selling consoles at a loss doesn't seem like such a good business decision in the long term. Financially, the PS3 is doing much worse than the PS2 at the beginning of its life, due to so many price cuts and lower software sales.

 



My Mario Kart Wii friend code: 2707-1866-0957

Fanboys don't bother checking the facts. I've published Sony's own data so many f*cking times and still most never bother to actually look them up. Case and point, the 11 million shipment number.



It makes me wonder though that you initially pointed to a thread about the finanicial reports all calculated and then rebound saying that if some one wanted to they could find it (Further adding that its not really possible to find it if wanted to).

Which makes me sceptical about your claim. Even though Im aware that Sony has suffered a loss on the PS3, which is practically speaking undeniable for anyone who follows the interest in the platform.

Lets leave it at that.

(this was directed at NJ5)



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rukusa said:
It makes me wonder though that you initially pointed to a thread about the finanicial reports all calculated and then rebound saying that if some one wanted to they could find it.

Which makes me sceptical about your claim. Even though Im aware that Sony has suffered a loss on the PS3, which is practically speaking undeniable for anyone who follows the interest in the platform.

Lets leave it at that.

I didn't point to any thread, I said that there was a thread about it based on financial reports (which are publically available).

I don't know what your notion of proof is, but giving out a pointer to publically available data is sufficient proof to me. If you're too lazy to check it (or just don't care), then yes, let's leave it at that.

 



My Mario Kart Wii friend code: 2707-1866-0957

NJ5 said:

I didn't point to any thread, I said that there was a thread about it based on financial reports (which are publically available).

I don't know what your notion of proof is, but giving out a pointer to publically available data is sufficient proof to me. If you're too lazy to check it (or just don't care), then yes, let's leave it at that.

 


See, thats what I expected you to say since I dont feel the need to do it. Seems like the most easy answer to find because someone didn't follow your instructions.

Good, we'll leave it at that.



Nintendo & Sony supporter:

 Consoles: Wii & PS3.

You want the truth?

SCE Annual net incomes / losses ( in US$ million ) :
FY 1997 ( end 31 march 1998 ) : 974
FY 1998 ( end 31 march 1999 ) : 1,130 | SCE best year ever
FY 1999 ( end 31 march 2000 ) : 730
FY 2000 ( end 31 march 2001 ) : -409 | PS2 launch
FY 2001 ( end 31 march 2002 ) : 623
FY 2002 ( end 31 march 2003 ) : 939
FY 2003 ( end 31 march 2004 ) : 650
FY 2004 ( end 31 march 2005 ) : 404 | PSP launch ( in America and Japan )
FY 2005 ( end 31 march 2006 ) : 75
FY 2006 ( end 31 march 2001 ) : -1,969 | PS3 launch , SCE worst year ever
FY 2007 ( update to Q1 FY 2007 , end June 2008 ) : -237
FY 2007 ( update to Q2 FY 2007 , end sept 2008 ) : -841

http://www.vgchartz.com/forum/thread.php?start=50&id=5286

Note: Slight edit Q1 and Q2 numbers were updated from the original post.

PS2 Launch to PS3 Launch (+$2282 million)

After PS3 Launch to Q2 2007 (-$3047 million)

Worst year PS2 era: (-$409 million)

Worst year so far PS3 era: (-$1969 million) 



Thanks FishyJoe. Actually the last known quarter is not yet in that data (Q2 FY 07). The loss was of $841 million in that quarter, so they're at $1078 million lost in the first half of the ongoing fiscal year, which makes it even worse.

Link to this particular report:

http://www.sony.net/SonyInfo/IR/financial/fr/07q2_sony.pdf

Luckily for Sony as a whole, they were able to make a small profit even with these huge losses from the games division. However, they might not be so lucky in the future if the USA does enter a recession, since they can kiss a partial goodbye to their sales of HDTVs and other expensive electronics.

I'm pretty sure that Sony's executives are giving this a long, hard thought.

 



My Mario Kart Wii friend code: 2707-1866-0957

FishyJoe said:

You want the truth?

SCE Annual net incomes / losses ( in US$ million ) :
FY 1997 ( end 31 march 1998 ) : 974
FY 1998 ( end 31 march 1999 ) : 1,130 | SCE best year ever
FY 1999 ( end 31 march 2000 ) : 730
FY 2000 ( end 31 march 2001 ) : -409 | PS2 launch
FY 2001 ( end 31 march 2002 ) : 623
FY 2002 ( end 31 march 2003 ) : 939
FY 2003 ( end 31 march 2004 ) : 650
FY 2004 ( end 31 march 2005 ) : 404 | PSP launch ( in America and Japan )
FY 2005 ( end 31 march 2006 ) : 75
FY 2006 ( end 31 march 2001 ) : -1,969 | PS3 launch , SCE worst year ever
FY 2007 ( update to Q1 FY 2007 , end June 2008 ) : -237
FY 2007 ( update to Q2 FY 2007 , end sept 2008 ) : -841

http://www.vgchartz.com/forum/thread.php?start=50&id=5286

Note: Slight edit Q1 and Q2 numbers were updated from the original post.

PS2 Launch to PS3 Launch (+$2282 million)

After PS3 Launch to Q2 2007 (-$3047 million)

Worst year PS2 era: (-$409 million)

Worst year so far PS3 era: (-$1969 million)


 This is a surprise to any person who frequents Vgchartz? Am I dumb in thinking this to be common knowledge?