Yesterday at CES Kaz said the PS3 is profitable.

That doesn't mean they have recover for all the billions lost at the beginning of the gen. If the console keeps selling Sony might recover all their losses, but considering how much it was (I'm probably dead wrong on this but I think it was something like 2-3 billion dollars) I highly doubt it will happen unless they have a PS2 like of success next gen.

Let's have a look at what happened to Sony's game division on the release of the various consoles, shall we:



With the PS1 and PS2, which were relatively modest in capability, they made a bit of a loss for the first year, and then profits after that, with net profit for each system being quite high. Note the bare profit made in 2005 due to PSP, by the way - PS2 was enough to keep it above water, but only just.

With the PS3, however, when they went for a powerful system (relative to release date), they went into a huge hole, and it took five years to make it back to profits again. In those five years, they managed to lose all of the profits they had made on the previous consoles. And unlike in 2006, Sony is currently suffering huge financial difficulties - the games division is pretty much the only part that is making any money at the moment (this is how Sony differs from MS, who can easily absorb the losses they've suffered from the Xbox and 360).

So tell me again why Sony's going to go high-power with the PS4.

Of course the PS3 (which will be selling steadily into next gen with price cuts and continued support will help to recoup some of those those losses) isn't the only product they've got.  They often announced that they were bringing back Walkman yesterday and that was always a highly profitable gadget.  Sony's not in the dire straits many want to think that they are.

Aielyn said: Let's have a look at what happened to Sony's game division on the release of the various consoles, shall we: With the PS1 and PS2, which were relatively modest in capability, they made a bit of a loss for the first year, and then profits after that, with net profit for each system being quite high. Note the bare profit made in 2005 due to PSP, by the way - PS2 was enough to keep it above water, but only just. With the PS3, however, when they went for a powerful system (relative to release date), they went into a huge hole, and it took five years to make it back to profits again. In those five years, they managed to lose all of the profits they had made on the previous consoles. And unlike in 2006, Sony is currently suffering huge financial difficulties - the games division is pretty much the only part that is making any money at the moment (this is how Sony differs from MS, who can easily absorb the losses they've suffered from the Xbox and 360). So tell me again why Sony's going to go high-power with the PS4.

That puts Sony losses from 06 to 09 at 5 billion dollars, It will be very difficult for Sony to recover from that.

Unfortunately Sony's gaming division is their most profitable at the moment....and that's still not enough to recover their losses.

Aielyn said: Let's have a look at what happened to Sony's game division on the release of the various consoles, shall we: With the PS1 and PS2, which were relatively modest in capability, they made a bit of a loss for the first year, and then profits after that, with net profit for each system being quite high. Note the bare profit made in 2005 due to PSP, by the way - PS2 was enough to keep it above water, but only just. With the PS3, however, when they went for a powerful system (relative to release date), they went into a huge hole, and it took five years to make it back to profits again. In those five years, they managed to lose all of the profits they had made on the previous consoles. And unlike in 2006, Sony is currently suffering huge financial difficulties - the games division is pretty much the only part that is making any money at the moment (this is how Sony differs from MS, who can easily absorb the losses they've suffered from the Xbox and 360). So tell me again why Sony's going to go high-power with the PS4.

Because if they don't, there's no reason for fans of the 90 million selling PS3 ( which is the least that it will sell) and its games to pick one up when it's not going to be able to recreate the same jaw dropping effects that games like Uncharted, Beyond:  Two Souls, and the Last of Us created in their time.

Your response confuses me.

PS1 sold over 100 million, and made a profit by the second year. PS2 sold over 150 million, and made a profit by the second year. PS3 will be lucky to make 90 million, and it took five years to have profit for that year, and still isn't even close to breaking even for the whole generation.

So what makes you think that a PS4 that is only mildly more powerful than the Wii U couldn't attract a huge number of fans, like the PS2 (which was weaker than all of its competitors) managed?

More importantly, what makes you think that number of fans is more important than profitability, when Sony is practically nearing bankruptcy?

EdHieron said: Aielyn said: Let's have a look at what happened to Sony's game division on the release of the various consoles, shall we: With the PS1 and PS2, which were relatively modest in capability, they made a bit of a loss for the first year, and then profits after that, with net profit for each system being quite high. Note the bare profit made in 2005 due to PSP, by the way - PS2 was enough to keep it above water, but only just. With the PS3, however, when they went for a powerful system (relative to release date), they went into a huge hole, and it took five years to make it back to profits again. In those five years, they managed to lose all of the profits they had made on the previous consoles. And unlike in 2006, Sony is currently suffering huge financial difficulties - the games division is pretty much the only part that is making any money at the moment (this is how Sony differs from MS, who can easily absorb the losses they've suffered from the Xbox and 360). So tell me again why Sony's going to go high-power with the PS4. Because if they don't, there's no reason for fans of the 90 million selling PS3 ( which is the least that it will sell) and its games to pick one up when it's not going to be able to recreate the same jaw dropping effects that games like Uncharted, Beyond:  Two Souls, and the Last of Us created in their time.

Your response confuses and upsets me greatly. You would rather Sony lose billions for your personal justification of buying a high-end PS4?

Nope, PS4 will be released in 2013 just like the Nextbox.