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Forums - Sony Discussion - Tomorrow is Sony's turn of revealing financial results

ikilledkenny on 30 January 2008

Though they might lose less money, the losses will still be staggering. I'm guessing 750 million. I don't think they will be able to profit until Holiday Season 08 at the earliest.


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ChronotriggerJM on 30 January 2008
ikilledkenny said:
Though they might lose less money, the losses will still be staggering. I'm guessing 750 million. I don't think they will be able to profit until Holiday Season 08 at the earliest.

 Well theyre almost at break even point with this batch of consoles, with the PS2 devision and the PSP devision I'd say the results might be far from staggering, I'd guess at most a 300m loss, however I'm fully prepared to eat crow :P



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thekitchensink on 30 January 2008
rukusa said:
NJ5 said:
rukusa said:
NJ5 is rubbing his hands in joy just knowing there will be a loss on the Sony side.

Anyway my shot will go somewhere between 300 mill and 800 mill.

Well this is kind of offtopic, but IMO they should lose money until they have learned their lesson, as Microsoft already did. I don't like them as a company either in the late few years (as I used to), which quite frankly doesn't help.

 


Well it was always pretty clear where your stand point is/was.

To be honest after 2005, 2006 and Microsoft's headstart they've probably learned their lesson. They've dropped the arrogance to a good reasonable low even with the occasional bizarre comments which can be overlooked.

I much rather want Sony over Microsoft on the market dispite their mistakes, Nintendo had the same deal for them going back in the mid 90's being overconfident... and apparently its starting to show again :/...


All three have been arrogant at one point or another.  Nintendo was arrogant with the N64, and it cost them throughout that era and the last gen.  They're turning that image around now.  MS thought they'd automatically get PS2-like support by gamers for 360 just by launching early.  That failed, they're trying to keep up the good gamesnow.  Sony's finding out the repercussions of arrogance right now.  We have yet to see what they're going to do about it.

 

350 million loss.  Would be more if PS2/P weren't helping them out.



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rocketpig on 30 January 2008
ChronotriggerJM said:
Fumanchu said:
How about the $1 million marketing campaign for Uncharted and the rest of the high rotation ads throughout the holiday season.

If the previous quarter was a loss of $850 million (gaming division) - I think it will be $900 - $1 billion this quarter (because they said it was going to get worse before it gets better)

how does reducing cost of the components mean they will have a higher loss :P Software is doing ok, and they went from losing 2-350 dollars per unit sold to losing.... almost nothing o.O;


Well, if you sell 1,000 units of an item that you sell at a $1 loss, you still lose more than if you sold 10 items sold at a $20 loss.

Advertising costs also skyrocket during the holiday season as retailers compete for television space/amount of advertising, driving up prices. There is a lot more to profit than just hardware cost.




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PooperScooper on 30 January 2008

I call 1 dollar profit.



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NJ5 on 30 January 2008
zackblue said:
NJ5 said:
rukusa said:
NJ5 is rubbing his hands in joy just knowing there will be a loss on the Sony side.

Anyway my shot will go somewhere between 300 mill and 800 mill.

Well this is kind of offtopic, but IMO they should lose money until they have learned their lesson, as Microsoft already did. I don't like them as a company either in the late few years (as I used to), which quite frankly doesn't help.

 


I'd like to know what lesson that is?


Several in one, actually:

- Respecting your customers

- Taking price into account when designing your console

- Helping developers help you (part of which is making good development tools, and other things which reduce development cost)

- Not changing their minds all the time regarding important things

- Probably other stuff I don't feel like remembering now

When you look at SCE's financials, it's obvious that they horribly misplanned this generation of consoles. It's something that can happen to any company, the problem here is that the loss-leading model (i.e. selling consoles at a loss) multiplies the damage from any mistake. I don't know how long the industry can support such a business model.

 



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darthdevidem01 on 30 January 2008

@NJ5

You just described M$ there....lol



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makingmusic476 on 30 January 2008
NJ5 said:
zackblue said:
NJ5 said:
rukusa said:
NJ5 is rubbing his hands in joy just knowing there will be a loss on the Sony side.

Anyway my shot will go somewhere between 300 mill and 800 mill.

Well this is kind of offtopic, but IMO they should lose money until they have learned their lesson, as Microsoft already did. I don't like them as a company either in the late few years (as I used to), which quite frankly doesn't help.

 


I'd like to know what lesson that is?


Several in one, actually:

- Respecting your customers

- Taking price into account when designing your console

- Helping developers help you (part of which is making good development tools, and other things which reduce development cost)

- Not changing their minds all the time regarding important things

- Probably other stuff I don't feel like remembering now

When you look at SCE's financials, it's obvious that they horribly misplanned this generation of consoles. It's something that can happen to any company, the problem here is that the loss-leading model (i.e. selling consoles at a loss) multiplies the damage from any mistake. I don't know how long the industry can support such a business model.

 


 But it won them a format war.  From their perspective, I don't they're all that bad off...



NJ5 on 30 January 2008
darthdevidem01 said:
@NJ5

You just described M$ there....lol

 

Well, not really (not regarding all the points at least). But I did mention that MS has already learned a lesson ;)

 



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

leo-j on 30 January 2008
rukusa said:
zackblue said:
NJ5 said:
rukusa said:
NJ5 is rubbing his hands in joy just knowing there will be a loss on the Sony side.

Anyway my shot will go somewhere between 300 mill and 800 mill.

Well this is kind of offtopic, but IMO they should lose money until they have learned their lesson, as Microsoft already did. I don't like them as a company either in the late few years (as I used to), which quite frankly doesn't help.

 


I'd like to know what lesson that is?


Everyone has some reason to be, as they say... "butthurt" over something. Let it be.

He may have a negative nature towards Sony but at least he doesnt act like Sony came to his house, murdered and raped his family, tied him and made him watch. 

He always acts like that, and dont get me started with the guy that thinks the wii will outsell every playstation console.

 



 

mM