ssj12 said:
starcraft said:
Finally decided? They did it once when Nvidia forced them into a corner.
Sony is "correct on the expenses it would cost?" Financially speaking, Sony's gaming division is the Microsoft E & D division of last generation. Have they completely eradicated all PSX and PS2 profits yet? They must be getting close.
Nintendo is the only company thats had a near to flawless economic model this generation. Sony's business model this generation isn't a target anyone is trying to hit.
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me and Naz had a discussion on this like a week ago. Now a days a minor increase in performace costs a massive amount of money so without profit of some form from a previous expense its pointless. Sony will wait till they earn profit off the PS3 that releasing the PS4 is financially fessible. This is the brilliance behind Sony's 10 year plan. The PS1 was the profit behind the PS2, the PS2 the profit behind the PS3, the PS3 will be for the PS4, and so on.
You might not want to admit this but the PS3 should be really close to being profitable for Sony. With all the internal hardware shrinkages they are cutting costs every way the can. It would be shocking if they dont make a profit by next fiscal.
Nintendo's main reason why they make a profit out of the box is because they buy hardware from other companies, IBM (not 100% sure) and ATI for the GC and Wii. And they never go for the high end products but rather the cheaper hardware available. They also sell their consoles for a profit out of the gate. The Wii probably costs them about $170 if not less by now to manufacture so they are making a huge profit margin because they like to play it safe with their hardware. The Wii could have been another GC this generation and Nintendo would still have been king of profit.
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Please don't pretend the current enormous losses are part of Sony's plan for the PS3. The "10 year plan" you refer too is a marketing gimmick more than anything else. If you mean something similar to the 8/9 year plan the PS2 has had, allow me to enlighten you as too how that plan works:
Price advantage + Third party exclusives + Momentum = Long-term sustainability and sales.
The PS3 currently lacks all three of the ingredients necessary for the PS2 to maintain the long tail that it has. One of them isn't enough, two of them isn't enough, you need all three.
Even if the PS3 is close to being cost-neutral, Sony has already sunk billions of dollars into a massive hole. They won't have as long to fill that hole as they did with the PS2, because the PS3 doesn't have the same ingredients of success the PS2 does. As for your ridiculous "profit behind the profit" model? What was the profit behind the PS1? If Sony plans to keep pushing technological boundaries, how many billions of dollars do they have to make before the end of this generation to overcome their massive losses and make the amount necessary to justify that kind of PS4?
Your last paragraph is largely irrelevant. It doesn't matter why Sony chose the model they did, it only matters that its not working. A "profit behind the profit" model doesn't work as well as other models on a good day. But when your not a significant market leader? It just plain fails. The PS3 won't have a tail nearly as strong as the PS2. It doesn't have the price advantage or exclusive third party support necessary to survive the launch of the Xbox 3 and Wii 2 NEARLY as long as the PS2 did the Xbox 2 and Wii 1. And what little time it does survive it wont be with the PS2's strong sales.
All that remains of Sony's 10 year plan is a desperate marketing gimmick.