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Forums - Sales Discussion - Sony May Post Biggest Loss in 4 Years on PlayStation 3 Consoles

robjoh said:
@dpmn...whatever, long name there.. I must agree healty competition is crucial for the market, with only Nintendo showing profit (looking at gaming divisions) you could ask yourself if investors would start giving the industry a bad name. People that invest money mostley want to regain that money and more. So far Microsoft and Sony has failed to deliver this gen.

Very good point, you sound very astute on the subject. Often investors start out small because they believe in the future of a company. As they get bigger and bigger, too many ego's arise and try and blame CEO's and CFO's for this or that. When in reality it is whole heartedly the investors, wanting it NOW! I am not a techy person, but I do know my games. I know what trends to follow. As CEO of a pharmaceutics corporation I implemented ideas that brought in excess of 500 million. Am I a scientist? No i actually dropped out o fMIt to pursue my career.

I am good what I do, The bottom line is if it isnt broke dont fix it. Everything has to be about who can piss further etc. I own a PS3 and Wii. I do not hate either one. If i was in PR at Sony/or at an executive level. I would offer a game system only and a 60 gig.

2 very dramatic price differences. When you buy a game system....that swhat you mainly invest for GAMES!

When you buy a cell phone it is suppose to be about communication. now we have TV text email etc.

 

This will save Sony

60 g  $400

Core PS3 $199

Most of you may disagree, but sony is getting further in the hole and are their own worst enemy. They do not want to end up like 3DO

They need to do something radical to stay in the game, They are essentially cutting their nose to spite their face!



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shams said:

This is just a prediction - with the real figures out tomorrow... but I find this number pretty scary from Sony:

"PlayStation 3 is being outsold by Wii by about two to one, causing Sony's game division, its second-largest by revenue, to post a fourth-quarter loss of 121 billion yen and a record 245 billion yen deficit for the fiscal year, according to five of the 11 analysts. The loss may exceed profits from electronics such as Bravia televisions, and the movie unit, whose ``Spider-Man 3'' generated record box-office sales when it opened this month.  "

...

So in the last 3 months, Sony's game division has lost approx 1.1billion - and 2.2billion for the financial year (last 12 months).

Ouch.

 


do you even believe this bloomberg???

Web morgan has already said that the production cost of ps3 has dropped below $ 600 and SONY are in a position for a price reduction.

It is possible that Sony’s cost of production for the PS3 has declined to the point that the company may consider a hardware price cut some time this summer, and we may see a price cut for the PS2 before the holidays.

http://www.neogaf.com/forum/showthread.php?t=155898

Casino royale alone earned SONY 300 million+

http://www.boxofficemojo.com/movies/?id=jamesbond21.htm

Spiderman 3 with a PP of 258 million is expected to reach 900m+ by the end of its run.

It is already above 600m in just a week.(around 200m+ in profit already)

http://www.boxofficemojo.com/movies/?id=spiderman3.htm

Bravias are projected to earn SONY 2 billion in profits this year.

what a lame article.



FishyJoe said:
The stock price is nearly the same it was five years ago. Sony is certainly no Apple when it comes to growth.

SONY's stock prices are at an all time high jumping 15 points from last october.

http://uk.finance.yahoo.com/q?s=SNE.

at 52+ from 37 last year.

geez is this a forum or a SONY bashing quagmire



Can a couple movies bringing in a billion really save the games department? Or is it just buying more time? In this situation Sony needs to do something! Or throw in the towel. They need to decide instead of procrastinating!!!



larry said:
FishyJoe said:
The stock price is nearly the same it was five years ago. Sony is certainly no Apple when it comes to growth.

SONY's stock prices are at an all time high jumping 15 points from last october.

http://uk.finance.yahoo.com/q?s=SNE.

at 52+ from 37 last year.

geez is this a forum or a SONY bashing quagmire


 

 



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Sony and Microsoft are essentially doing the same thing right now, carrying their Gaming division through other departments.



FishyJoe said:
larry said:
FishyJoe said:
The stock price is nearly the same it was five years ago. Sony is certainly no Apple when it comes to growth.

SONY's stock prices are at an all time high jumping 15 points from last october.

http://uk.finance.yahoo.com/q?s=SNE.

at 52+ from 37 last year.

geez is this a forum or a SONY bashing quagmire


 

 

i am not making a comparison.

i am applauding SONY's recovery efforts.

last year during October SONY shares were hovering around the 37 mark.

It is now at 53 and is expected to reach 60 due to S3,strong sales of Bravias and psps.

 



Ohhhh, the last year...

 



haha PWNED. The writing is on the wall... Anyone that saw what happened at E3 2006 could have predicted what is happening now to Sony and what will happen to Sony in the future. Let me quickly repeat what I wrote in a different thread. In order for Sony and MS to survive in the video game console business, they both need to totally dominate the console market and they need consumers to buy lots of new, expensive games. Both companies need this because they invested so much money on these powerful consoles. But unfortunately for MS and Sony, neither of their consoles will totally dominate the market in this console generation. The writing is on the wall... The Wii is expanding the market. The PS3 and 360 are fighting each other over a smaller piece of the pie. Gamers are tired of sequels and rehashes, so they are buying less new games. Not to mention that PS3 and 360 games are more expensive then Wii games. The Wii has a higher attach rate then the PS3. Game devolpment costs have been skyrocketing and getting worse with the development costs of the PS3 and X-Box. Developers who focus on making a handful of blockbuster titles for the PS3 and 360 are going to get a rude awakening when their games don't sell enough to cover the high costs of development. Without Nintendo, the Wii and the DS we would have had another video game industry crash like in the early '80s. But instead of getting a flood of cheap, low quality crap games, we're getting a smaller storm of expensive, high quality but recycled games. The PS3 is simply too expensive. The games are all rehashes (albeit, pretty ones). The dev costs are too high. Devs will have a much harder time recouping their development costs and making a profit. Large portions of this industry lost their mind.



I feel sorry for sony, they are tossing away everything they've built, although I am a ninty fanboy I sure appreciated the competition. why don't they learn from the mistakes nintendo did?