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Forums - Sony Discussion - PS3 a faster money sink than the Xbox? I can see why no price cuts soon.

MontanaHatchet on 21 June 2008

Would people calm down in this thread? I'll name two examples:

1. Squilliam: Calling the PS3 a failure (and a fantastic failure!) is not appropriate in any context.

2. Drkohler: If you want to refer to a moderator as a "useless twit," then make sure you keep it in your head and don't type it out. I'll let you get away with a warning.



 

 

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Squilliam on 21 June 2008
MontanaHatchet said:
Would people calm down in this thread? I'll name two examples:

1. Squilliam: Calling the PS3 a failure (and a fantastic failure!) is not appropriate in any context.

2. Drkohler: If you want to refer to a moderator as a "useless twit," then make sure you keep it in your head and don't type it out. I'll let you get away with a warning.

:(

I know this is dangerous territory but i'll venture here anyway.

The  3rd gen RX7 was a fantastic success as a car, and a fantastic failure for Mazda that almost killed the company. The first two were both great cars but when they made the last one more expensive and lost the idea that made the first two great, they failed.

So the PS3 is a fantastic success as a system and a fantastic failure from a financial perspective. Its quite an interesting parellel between a car model and an entertainment model.

The point I was making was not that the PS3 as a product was a failure, its a great media player/games system. Financially? Wow... yep I won't go there again... Its the point thats paraded again and again with referrence to the Xbox/Xbox360.

 

 



Tease.

MontanaHatchet on 21 June 2008

Well use a different choice of words next time.



 

 

Squilliam on 21 June 2008
Rock_on_2008 said:
Squilliam said:
Rock_on_2008 said:
So long as the PS3 outsells the XBox 360 in total console sales LTD. Beating the 360 in total market share is all that matters to the PS3. 5.5 million gap and closing. the Nintendo Wii is out of reach. The Wii is 14 million ahead of the PS3 and margin is growing.

It will be quite hillarious if the 360 gets a price drop soon and spanks the PS3 for the rest of the year. It'll be even funnier if they maintain profitibility whilst doing so.

 

 

That will never happen. The PS3 has continuously outsold the 360 in weekly console sales since December 2007. Over 30 straight wins- PS3 over the 360 and counting.

360 will never outsell the PS3 in weekly console sales.

*I noticed but im not responding*

 



Tease.

Pristine20 on 21 June 2008
starcraft said:
BengaBenga said:
Sony lost 1.2 Billion last year and a lot more the year before. The PS2 is slowing down significantly. Sony has a tough year ahead in terms of profit. Especially if the console keeps selling better, but Sony doesn´t deliver their own games. SCE business plan is losing on the console but making money on the games. But where are the games? Sure MGS will gain Sony some licensing money, but the big bucks have to come from their own studio's.

It was already clear that there won't be a pricecut this year, but the comments from Stringer make it obvious that the company is done with SCE's financial problems. That should be the main concern in this topic, instead of the nitpicking about Blu-Ray, which won't benefit SCE, cause it's a different division.

From reading between the lines of the Sony CEO it's clear that the decision to stop HS2, Eight Days and Getaway came from higher up than SCE. That must be worrying.

SCE FY 2007:
http://news.vgchartz.com/news.php?id=1155

Its quite possible Sony won't make any money directly from MGS4, if the licencing fees were sacrificed as part of the exclusivity payment.

I don't know. To my mind, I still think Sony will cut the PS3's price in November. I don't think they are going to be willing to just take an MS price cut on the chin. Too much userbase could be lost.

 

You heard Howard Striger. Even if M$ has a price cut, I don't think Sony can/will follow suit. I don't think they even want to have a drastic increases in console sales because that means a drastic increase in losses. That said, I now think the ps3 is really going to be around for a very long time. I don't see any need to upgrade after playing MGS4. If there must be a new generation of PS, Sony would definitely take the Nintendo route and profit off console sales. Even M$ would probably do the same.

 



"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)

"WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler

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Pristine20 on 21 June 2008
starcraft said:
BengaBenga said:
starcraft said:

Its quite possible Sony won't make any money directly from MGS4, if the licencing fees were sacrificed as part of the exclusivity payment.

I don't know. To my mind, I still think Sony will cut the PS3's price in November. I don't think they are going to be willing to just take an MS price cut on the chin. Too much userbase could be lost.

 

The thing is that SCE is bound by Sony to the new strategy of making profit. SCE will have a very hard time to explain to the mother company and the shareholders why the PS3 saw another pricecut that goes directly against the strategy of making profits on the Computer and Entertainment Division.

Remember that for the shareholders only the profits are important. For all they care the whole C&E divison gets sold, if that's better for their value.

If you add to that that the results for PS3 have been far less than expected I think a PS3 pricecut in this Financial Year is out of the question, whatever Microsoft does. Sony is not in the business of beating Microsoft. It's in the business of making money.

But the damage to the PS3's long-term prospects and the Playstation brand at large could become even more pronounced than it is now if they didn't keep up with Microsoft over the holidays.

We've seen that MGS4 can push hardware without price cuts, but short of FFXIII making it into 2008, the PS3 has NO major hardware pushing titles left this year. Another four months pass and all of a sudden most people that are willing to buy a PS3 at $400 already have, and parents looking to buy their kids a PS3 find that its the SAME price as it was when they were going to buy it last year and found it too expensive? I just think Sony will avoid that at all costs, even if it means they don't make a large Q3 (based on their fiscal year) profit. And they should make a profit in their Q3 even if they are losing some money on the PS3, because the PS2 and PSP will keep the division in the black for that quarter as we saw last year.

 

You seem to forget that pushing hardware generates the most losses. Frankly, this generation is not about consoles sold. Its now about profit. If SCE cut the PS3 price, Howard Stringer will probably sell them to M$ and there goes the fanboy wars and the competition till Apple jumps into the fray.

 



"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)

"WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler

Leetgeek on 21 June 2008

PS3 has sold enough units to do it's job which was crush HDDVD. Yeah they lost money but the'll make it back with license fees. If you think that there will be a bigger better media format then Blueray before 2020 you're living in a fantasy world.

Are last years sales figures relevant? From what I understand Ps3 outsold Wii last week despite being twice the price.

All 3 systems are overpriced at this point and time.



Squilliam on 21 June 2008
Leetgeek said:
PS3 has sold enough units to do it's job which was crush HDDVD. Yeah they lost money but the'll make it back with license fees. If you think that there will be a bigger better media format then Blueray before 2020 you're living in a fantasy world.

Are last years sales figures relevant? From what I understand Ps3 outsold Wii last week despite being twice the price.

All 3 systems are overpriced at this point and time.

 

 Dude...

If you can't see past the current weeks sales numbers... And yes it helped win a format war, and yet... The internet will start to hit huge speeds soon and the internet delivery revolution will be complete.

Oh yea, consolation prize? Microsoft gets money from every Blu ray disk sold too. They scored the Codec that encodes the disks!



Tease.

DMeisterJ on 21 June 2008

Until someone can show me that Sony paid for MGS4 exclusivity, or for studios to go Blu, or correctly interpret Kaz's "profit by 09" comment as beginning of 09 or end of 09 FY, this thread is fail.



Rock_on_2008 on 21 June 2008
DMeisterJ said:
Until someone can show me that Sony paid for MGS4 exclusivity, or for studios to go Blu, or correctly interpret Kaz's "profit by 09" comment as beginning of 09 or end of 09 FY, this thread is fail.

Sony has full exclusivity of MGS 4. Sony created blu-ray player in PS3.