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Forums - Sony Discussion - Sony console sales 2007

If we want to get technical about the wording, it should say "Select Starting Week (Inclusive)" and then "Select Ending Week (Exclusive)", meaning if you selected 30st Dec 2007 to 30st Dec 2007 it would give you 7 days of sales (or more likely an error), and if you select 30st Dec 2007 and 6th Jan 2008, you'd get the same 7 days.



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It makes perfect sense the way it's worded right now(the choices, not the output) as long as one bothers reading. First choose the starting week ending on a certain day, which is 7 days of sales automatically. Then choose the the final week which ends on a certain day.

Perhaps the output should be changed to be more clear from
"VGChartz Hardware data for the period 31st Dec 2006 to 31st Dec 2006:"
to
"VGChartz Hardware data for the weeks ending 31st Dec 2006 to 31st Dec 2006:"

Another option if it's possible is to change the choices for the starting week to the first date of the week. Then the output would be as follows:
"VGChartz Hardware data for the period 25th Dec 2006 to 31st Dec 2006:"



wiifm said:
@SlorgNet

If you add VAT, import taxes to EU, distribution, marketing budget, already wasted money on development and ongoing development costs for e.g. new SKUs, PS3 is anything but breaking even .....
That 30% annual cost reduction might be the case for some components but for sure not in general.
According to your calculation, $472 manufacturing costs would be around 79 percent of the EUR retail price which sounds anything but healthy ....
They can only break even if they sell massive amounts of software imho, that's where the profit is.



 That doesn't even take into account retailer profit. Best Buy is probably making $50 to $100 of profit on each console sold.

@ dbot

The reason nobody cares about PS2 sales is because in 2 years Sony won't be selling more than a couple hundred thousand PS2 a year and no new software will come out. PS2 sales does not shape the future of console gaming because developers are not thinking about people who own ps2 when they are deciding what games to make. Once PS2 is no longer selling new games, Sony will have tiny market share and will be in big trouble. 



dbot said:
Game_boy said:

 

The real factors are software sales and sustained hardware profit.

PS2 has low software sales, PSP has abysmal and PS3 is good... relative to the tiny userbase.

PS3 loses massive amounts of money, PSP makes some money (less than a DS) and PS2 likely has razor margins. The net result is massive overall losses.

Finally, PS2 is declining and since neither PS3 nor PSP will fill that void, overall profit trends are negative not positive.

Therefore, it doesn't matter that Sony technically sells the most consoles as their influence on the market is very small and declining.

 


Please provide your source for the statement "PS3 loses massive amounts of money." I read this statement a lot on this site and am curious what it is based on? I am not saying it is false, but I would like to understand what it is based on.

"Therefore, it doesn't matter that Sony technically sells the most consoles as their influence on the market is very small and declining."

I think these numbers show that Sony is serving 2 markets. The casual gamer market is served by the PS2 and competes with the Wii. Obviously the Wii dominates this market, but to sell 9 million consoles with 8 year old technology is pretty impressive. Sony is also doing well in the high definition gaming market. They are within a 1/2 million sales of the 360. (The 360 had a far superior game library in 2007). I don't think these numbers support your theory that Sony's influence on the market is small and declining.

 

 

Dbot,

The place you want to look is:

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

Specifically, the second quarter of 2007, which is the latest financial results from Sony, ending Sept. 30th, 2007.

In there you will find that for that quarter, Sony's gaming division, on revenues of 243Billion yen lost (96.7)By in operating income (ie basically, before taxes).

Meaning that after including any profits of the PS2 hardware and software, any profits of the PSP hardware and software and any profits on the PS3 software, the losses on the PS3 hardware plus any general overhead for the division, were enough to eat up all of those profits and wind up 96.7 billion yen in the hole. According to Sony's accountants.

 



Torturing the numbers.  Hear them scream.

Rugger08 said:
wiifm said:
@SlorgNet

If you add VAT, import taxes to EU, distribution, marketing budget, already wasted money on development and ongoing development costs for e.g. new SKUs, PS3 is anything but breaking even .....
That 30% annual cost reduction might be the case for some components but for sure not in general.
According to your calculation, $472 manufacturing costs would be around 79 percent of the EUR retail price which sounds anything but healthy ....
They can only break even if they sell massive amounts of software imho, that's where the profit is.



That doesn't even take into account retailer profit. Best Buy is probably making $50 to $100 of profit on each console sold.



 Actually retailers make very little on hardware(I don't know from experience, only from what people that work in retail have said).  So little sometimes that if a customer charges the purchase the retailer loses money.  They make most of the money on software.  The incentive for selling hardware at marginal profit is they generally receive larger shipments of software.



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Rugger08 said:
wiifm said:
@SlorgNet

If you add VAT, import taxes to EU, distribution, marketing budget, already wasted money on development and ongoing development costs for e.g. new SKUs, PS3 is anything but breaking even .....
That 30% annual cost reduction might be the case for some components but for sure not in general.
According to your calculation, $472 manufacturing costs would be around 79 percent of the EUR retail price which sounds anything but healthy ....
They can only break even if they sell massive amounts of software imho, that's where the profit is.



 That doesn't even take into account retailer profit. Best Buy is probably making $50 to $100 of profit on each console sold.

@ dbot

The reason nobody cares about PS2 sales is because in 2 years Sony won't be selling more than a couple hundred thousand PS2 a year and no new software will come out. PS2 sales does not shape the future of console gaming because developers are not thinking about people who own ps2 when they are deciding what games to make. Once PS2 is no longer selling new games, Sony will have tiny market share and will be in big trouble. 

 

So we should ignore PS2 sales now based upon what you think will happen 2 years from now?  Let's focus the discussion on what is known.  The PS2 is the number 2 selling console and Sony sold the most consoles in 2007.  The numbers do not lie.  If you believe vgchartz.

 



Thanks for the input, Jeff.

 

 

As Rol said "What do you mean with ignored?" PS2 sales are obviously tracked on this site. They aren't posted on the front page though because the PS2 is not part of the current generation of consoles. PS2 was the 2nd best selling home console and Sony sold the most home consoles in 2007, but those PS2 sales have extremely little bearing on how the current generation will unfold.

Note that generations are defined by the launch times of consoles, not graphics or features. X360 kicked off the current generation and barring a new console entering the market the next generation will begin when Microsoft, Nintendo, or Sony release a successor.



Game_boy said:

 

The real factors are software sales and sustained hardware profit.

PS2 has low software sales, PSP has abysmal and PS3 is good... relative to the tiny userbase.

PS3 loses massive amounts of money, PSP makes some money (less than a DS) and PS2 likely has razor margins. The net result is massive overall losses.

Finally, PS2 is declining and since neither PS3 nor PSP will fill that void, overall profit trends are negative not positive.

Therefore, it doesn't matter that Sony technically sells the most consoles as their influence on the market is very small and declining.

 


 I thought we all just got done reading articles saying Sony has made the 40GB Profitable...... And just so you know, all through 07 costs were slowly dropping for PS3 production, it didnt just go from $800 to $400