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

your mother on 15 May 2007
larry said:
rocketpig said:
larry said:

was also estimated that the BD drive of ps3 would cost almost the same as the DVD drive in x360 by may, 2007.


Who on earth estimated that? Every report I've read has Blu-Ray drive manufacturing costs approaching DVD drive manufacturing costs sometime in 2010, and even then they won't be the same, only close.


why do you have to refute every statement without knowing facts.

just google for the japanese article that stated that the P price of BD drive would match that of DVD by june.

the BD drive is being mass produced in large quantities . The price has come down perhaps to something around 30$ by now.

dont argue unnecessarily.

google for the links to the article.

 

Wouldn't it be better if you provided the links so we can see what you see? Just a thought!

Anyhow, I don't think a BD drive is around $30 yet, mainly because internal DVD players for the PC are still hovering around the US$20 mark, and that is with an average 3.5% profit (margins are extremely tight with PC components and peripherals; in fact, that 0.5% I tacked on was being generous), yet I don't see Blu-Ray drives (or HD-DVD drives, for that matter) approaching that market price anytime soon (admittedly, they are writables but still the cheapest one I found on pricegrabber.com was around US$450).

If it was really that cheap and if Sony's PS3 is just a trojan horse for Blu-Ray adoption, they could do the easiest thing: Offer the drives at US$30+3.5% profit margin and that would singlehandedly destroy the DVD in no time. I'd be the first in line! Everyone would jump on the Blu-Ray bandwagon. There really would be no reason not to, as prices no longer command a premium over DVD players.

However, chances are it still costs much more than just 30 greenbacks to make, witnessed by their still-high prices.



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rocketpig on 15 May 2007
larry said:

7 % of the US customers own HD-TV.

www.eproductwars.com

the war was never on. Everybody knew from the beginning that BD was the winner because of massive storage capability.

watch out for the 200gig BD disk due this fall by TDK.

to you war is never won since you own an x360 .


In case you didn't notice, I have mentioned several times that I don't care who wins. I'm not particularly interested in either format at this point in time.

Not all of us religiously follow one company and buy into every PR line they feed us.

Oh, and HDTV adoption is way over 7% in the US:

http://www.abiresearch.com/Blog/Digital_Home_Blog/119

From 2004 (!): http://www.clickz.com/showPage.html?page=3386931

Again, 2004 (!): http://broadcastengineering.com/hdtv/study-hdtvs-household-20041215/




Or check out my new webcomic: http://selfcentent.com/

elprincipe on 16 May 2007
larry said:
 

dont get me wrong

but format war has already been won by blu-ray.

watch out for PIRATES OF THE CARIBBEAN 1 & 2 next week releasing exclusively on BD and DVD

 


Are you washimul?  If not, this is dead-on his style...



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BenKenobi88 on 16 May 2007

You could have made the Digg article's headline less biased...



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johnlucas on 16 May 2007
Dolla Dolla said:
I was quite surprised to hear about the profits Sony gained from the PS2 era. You'd think with over 100 million consoles sold, they'd have been pouring in billions upon billions of dollars. But, not so. I think they only saw 2 or 3 billion in profit. Revenue was through the roof, probably upwards of 25 to 35 billion dollars, but profit was so small in comparison. Taking a loss on hardware seems to be lunacy. If Nintendo had half the install pase the PS2 did, their profits would've been disgustingly high.

Now you know the difference between the grizzled veteran and the paper tiger. Sony HAD to dominate just to exist in this biz. This is why their performance with the PS3 is very troubling for their future in this business.

Yeah I know. More doom and gloom. I'm sorry but I refuse to put my head in the sand just because I don't like the news coming my way. I take my truth like some folks take their coffee. Straight up.

John Lucas

(Vidgame biz is a killer) 



Words from the Official VGChartz Idiot

WE ARE THE NATION...OF DOMINATION!

 

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johnlucas on 16 May 2007
ramberk said:
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.

Wise people exist on planet earth as evidenced here.

It's BEEN obvious for those who were paying attention. E3 2006 was just the back of a pimphand to Sony. Sony became a mark for the business as they say in pro wrestling. They bought their own hype. It's hurting them tremendously. Their best bet is to hang on until next gen. That's the BEST option. Just survive to #2 position and try to break even to have another go for a PS4. This gen is a lost cause and more and more bad news will be following I hate to tell you.

If Sony wants to remain in this business, plug the leaks and try to salvage what's left. If not, investors may not pony up for another go 'round.

John Lucas 



Words from the Official VGChartz Idiot

WE ARE THE NATION...OF DOMINATION!

 

reverie on 16 May 2007

Erik Aston,

I can't find unit profits/losses for sony Computer Entertainment for most of the PS1 era, so it's not possible to say how much they made on the PS1. In the PS2 era operating profits added up to around 2 billion. Here's my old graph again, done in March:

Cumulative PS2 era profits were around ¥265 billion or $2.2 billion.



Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.

reverie on 16 May 2007

dpmnymkrprez,

I like your idea of gutting, but how could they do that without breaking compatibility? They can't take out the bluray drive. And all the new chip designs are custom and cannot be replaced off-the-shelf. They can streamline those, but that's what they are doing anyway and it will take years. And please consider that the PS2 sold very well for $299 (in 10'2000-05'2002), so that would be the price point the PS3 has to be compared with.



Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.

omgwtfbbq on 16 May 2007
larry said:
rocketpig said:
Thrillhouse said:
that is IF people don't switch to digital downloading as the formats of choice anytime soon. That could be the worst problem that Sony, MS and Nin will face.

MS is banking on people downloading content. They don't care about the format war one bit (though I'm sure they wouldn't mind watching Sony lose).

dont get me wrong

but format war has already been won by blu-ray.

watch out for PIRATES OF THE CARIBBEAN 1 & 2 next week releasing exclusively on BD and DVD

 

Don't be so quick to write off HD-DVD. Toshiba is not worried about the format war yet. They know they're in this for the long haul, and a small amount of early adopters don't matter too much in the long run. HD-DVD is designed to last for 10 years and a slow start doesn't mean the end. The format war is a MARATHON not a SPRINT.

Just wait for two months for the big guns to come out, and a price drop to hit around september, and HD-DVD will start dominating sales. Especially when the Blu-Ray fad wears off.

Bl-ray might lead up till 2009 but once it hits mass market you'll see HD-DVD really start to take off, and leave Blu-Ray in the dark. Don't underestimate the DVD brand!



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dreamcast4eva on 17 May 2007

You must not know much about video games if you think it is a fad.  Your grandmother must have told you that.  Videogames are here to stay.  Get a dreamcast, download the isos, and play them.  The dreamcast is the best system ever.  If you don't believe me try it!