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boycop on 31 January 2008

What do you think about the hardware sales of PS3, 4.9 million?
Though, it seems the inventory, as awhole, increased, it decreased during the last part.
Would be interesting to know how many of those were actually sold to end-consumers.



Lost my faith in VGChartz. Too many stupid and ignorant Americans, even as moderators.

It's a shame, really. "The Boss" should do something radical about this Americanization, but it seems hardly feasible, so my days here are numbered.

 

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makingmusic476 on 31 January 2008
Username2324 said:
So MS took 1 3/4 years to turn a profit, Sony only 1

 Of course, both companies have a lot to make up before the initial investment looks like it was a good idea. ^^ 



Lafiel on 31 January 2008

@ Kasz )

the negative number you are looking at is for Q1-3 "nine month - ended december 31"



rocketpig on 31 January 2008
Username2324 said:
So MS took 1 3/4 years to turn a profit, Sony only 1

No, you're not looking at the numbers very closely.

For all we know, the PSP and PS2 made Sony $400m and the PS3 lost $300m back. Or vice versa.

The 360 could also be dragged down by Zune and the rest of H&E. Or vice versa.

The numbers themselves tell us very little about the PS3 and 360, though they do tell more about the 360 because MS' H&E doesn't have the history of profitable product lines like the PS2 backing it up. 




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Username2324 on 31 January 2008

@Chichi 

Hey bro, I believed they could do it too.



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shams on 31 January 2008

I guess Sony would be happy with this - it makes nice reading anyway. They would take a 100m profit over any loss, anyday.

BUT - as stated above, it *is* the holiday quarter. There is no breakdown of profitability by platform - and they did sell:

- 5.4m PS2s
- 5.76m PSPs
- 4.90m PS3s

...plus a heap of software (all profit) - around 105m units.

Consider that *each* piece of software should be making at *least* $1US profit (after all costs are taken into account), that PS2 hardware should be... $30? profitable per unit - as should PSP hardware?

...and you get $100m (software) + 11m x $30 (hardware) = around $450m (profit)

So the 5m PS3 units still cost them around $100US loss per unit.

...

With much lower sales next qrt (non-holidays), be interesting to see how the figures stack up.



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rocketpig on 31 January 2008
shams said:
I guess Sony would be happy with this - it makes nice reading anyway. They would take a 100m profit over any loss, anyday.

BUT - as stated above, it *is* the holiday quarter. There is no breakdown of profitability by platform - and they did sell:

- 5.4m PS2s
- 5.76m PSPs
- 4.90m PS3s

...plus a heap of software (all profit) - around 105m units.

Consider that *each* piece of software should be making at *least* $1US profit (after all costs are taken into account), that PS2 hardware should be... $30? profitable per unit - as should PSP hardware?

...and you get $100m (software) + 11m x $30 (hardware) = around $450m (profit)

So the 5m PS3 units still cost them around $100US loss per unit.

...

With much lower sales next qrt (non-holidays), be interesting to see how the figures stack up.

The PS2 cash cow will start slowing down, too. It is amazing how well that thing still sells, though. I never thought I would see another console have the lifespan of the NES or 2600. 




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Kasz216 on 31 January 2008
Lafiel said:
@ Kasz )

the negative number you are looking at is for Q1-3 "nine month - ended december 31
 Yeah, i figured that out in my last post that the reason i had (Loss) after it and not electronics and pictures was because the previous loss was up their for comparison while previously the Electronics and picture divisions posted gains. 

shams on 31 January 2008

The comment on inventory is also telling - they have $1.6bn of "finished goods" sitting in their warehouse, waiting to be shipped. This is a 77% increase on the figures from 12 months ago.

So in short - they are making hardware much faster than they are selling it (although the inventory did drop over the Xmas qrt, as expected).

"This is primarily due to the buildup of finished goods following the worldwide expansion from the PS3 business".

...

If they drop the PS3 price by *another* $100, they will be forced to take an immediate hit of around $400m on their financials (i.e. around 25% the value of their warehouse goods). That won't make their gaming sector look pretty, unless they can hide that figure somewhere else on the balance sheet.



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Kasz216 on 31 January 2008
ChichiriMuyo said:
Kasz216 said:
Lafiel said:
if it was loss it would be written (113) Kasz


Yet after the games operation income it has a (Loss) after it. Seems like one of those is a typo.


Dude, try reading the rest of the report. Everywhere you see parenthesis that means money was lost in that sector for that time period. Only that time period. Look at the Cash Flows section of those charts, what you will see before that is either (loss) or (used for), and that is becase at that time, and that time only, that sector provided a negative income. It happens throught the report. In some points, such as the Cash Flows section, there are times when both tiem periods mentioned have their numebrs in parenthesis. At those times, they lost money, at any time when a number is not in parenthesis it has thereby been stated, unequivocably, by Sony that a profit has been made.

Ergo, Sony made a profit last quarter.

And that made me giggle, because of all the people who simply couldn't believe it was possible. I have laughed at the people who keep saying "Sony can't afford ____" over and over again. Every few months, in fact, Sony gives me something to laugh about. It's like they sabotaged themselves just so they could tell people that they did the impossible. They cut prices impossibly fast, they cut costs impossibly fast, they made profits when their supposed losses made it impossible.

Impossible. Impossible. Impossible.

That's all I hear from people who, like you, simply refuse to believe Sony can do what it does. That in the face of them doing it longer than you've been alive, to boot. Granted, they've had their failures. Every company does. Yet a bunch of people sitting around chatting in forums think that, in many cases with no business education, they can actually determine what a massive company like Sony is capable of.

Well, here ya go, naysayers. Sony won. They may not have sold the most, they may still be strugglign with their business model, but they've won. They've overtaken Microsoft for the time being and they made a profit after two "desperate" pricecuts. And the headlines in the news lately have said Sony is just going to keep cutting costs relentlessly this year. Shrunken lasers, 65nm RSX, 45nm Cells, smaller mb that innevitable comes with the previous two. Looks like they'll be reaching $300 this year, and it might not even cut into their pocket books.

What "impossible" thing will Sony next for my amusement, I wonder?


I asked a simpe question as to why it said (loss) after it besides it yet didn't in other profit gaining divisions.  I think you are looking way too much into it.

Had someone actually simply said "Because they were using it to explain why the comparison was in parenthesis", i wouldn't have had to figure it out myself.