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

NJ5 said

"Dan, your second question, PS3 cost update, since the introduction the cost has drastically decreased. How much I cannot disclose it. However, we can expect that sometime in late fiscal year '08, the cost to be equal to the selling price. Currently, the cost is higher than the price, but toward the second half the fiscal year '08 we could catch up.

"toward the second half the fiscal year '08 we could catch up" - meaning sometimes between August and September this year. At the time of the interview, they were still cautiously wording their expectations (remember their prediction of 10mio PS3 sold in fiscal year 2008, almost the same number as fs2007). However, we see that PS3 has been selling at much higher rates this year compared to last year (Sony probably expected worse rates). If we assume that manufacturing runs generally take about 1-3 months until they reach shops, we are exactly in the right timeframe for profitability with units _currently in production_ (notice that I always stressed this point in my previous posts). If they could, as was hinted, reduce the costs even more than expected, it is entirely possible that some of the manufacturing runs from the last quarter of fs year 2007 are already cost neutral _now_. Again nobody knows for sure about the exact values except Sony, and they are not going to tell anyone.

 



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The sheer delusions of grandeur in this thread amazes me. First, you have a cat declaring a PS3 victory even though it's barely crawling forward. That's like Dennis Kucinich or Sam Brownback screaming 'I'm the nominee!' This makes for great entertainment.

The system is being sold for a loss. And even with Blu Ray, Sony has had to rethink the word 'success.' Even with the brand, IMHO, the PS3 will never, ever eclipse the success of the PS1 or PS2. It happens.

Second, based on the amount of technology Sony crammed into the console, to think they can dream of matching MS move for move anytime this year borders on insanity. Please, quit dreaming.

So what the PS3 has beat the 360 for 35 weeks. So what the PS3 outsold the 360 last week by 200K. Guess what? Do the words 'Metal Gear' mean anything to you folks? Folks wanna throw numbers around, claiming the PS3 whipped the 360 last week without adding the Metal Gear footnote. It was one of the most anticipated games on the system, and to move 200k systems is good, but not stellar, especially for a game of this caliber.

Everyone has an opinion, but facts are facts. Shareholders want returns - a pricecut will further delay those returns and soon, heads will roll.



DMeisterJ said:
Legend11 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.

I remember when the goal was PS3 domination (outselling the Wii).  It's truly shocking just how far the PS3's fortunes have fallen since launch but at least some people finally came back to reality and have faced the cold hard truth.  The PS3 hasn't even passed the 360 yet, it's losing tons of money and exclusives (*waves* to Star Ocean 4 & Monster Hunter 3), and yet some PS3 fans are declaring victory.  Victory at what?  Being willing to lose piles of money for marketshare?  The simple fact that Sony is in the situation it's currently in is huge victory for Microsoft.

 

Still in stage 1 hey Legend? 

It's time to move onto stage 2, Anger. 

Posted for you:

  1. Denial:
    • Example - "I feel fine."; "This can't be happening."
  2. Anger:
    • Example - "Why me? It's not fair!" "NO! NO! How can you accept this!"
  3. Bargaining:
    • Example - "Just let me live to see my children graduate."; "I'll do anything, can't you stretch it out? A few more years."
  4. Depression:
    • Example - "I'm so sad, why bother with anything?"; "I'm going to die . . . What's the point?"
  5. Acceptance:
    • Example - "It's going to be OK."; "I can't fight it, I may as well prepare for it."

Gotta love the way you don't even heed your own advice.

 



Kasz216 said:
BengaBenga said:
Kasz216 said:
ssj12 said:
alpha_dk said:
ssj12 said:

 

Well with Blu-ray music might get a second round in the HD music players again. Thats right music on Blu-ray in stunning quality.

http://www.highdefdigest.com/news/show/Surround_Records/Music_on_High-Def/Disc_Announcements/Tchaikovskys_Piano_Concertos_Audio_Blu-ray_Announced/1839

 

Lol?

 

I;m serious, I loved the idea of super-audio CDs back in the day. They offered a much cleaner sound then CDs. If they were Blu-Music Discs the audio quality would be amazing. 7.1 Uncompressed audio = awesome!

The problem is... you're about the only one.

If people cared about sound quality we wouldn't have CD's or Cassette tapes. Everyone would still be spinning the Vinyl.

Which is generally the problem. Your looking at this stuff from a tech enthusiasts point of view. Not from the view of the market as a whole.

I mean... why didn't Laserdisc catch on? It was better in every way. Why did VHS beat out Betamax when Beta was the better format?

These are the kind of things the tech enthusists miss.

 

Well, Vinyl is making a big return. The big electronic stores here all sell new Vinyl nowadays, so it's becoming mainstream again. All the new records are also printed on Vinyl.

I buy most of the stuff on vinyl, because it sounds enormously better. You don't need a professional audio set to hear that.

Are you sure it's becoming Mainstream?   Last time I checked it was just traditional DJs and the same musicphiles.  I'm sure it's percentage of the physical media has risen but that would be do to MP3's and stuff catching on.

 

Ya, it is basically those. And the group is called audiophiles not musicphiles. I'd still much rather have SACDs or Blu-CDs as they would be smaller and easier to store.



PC gaming is better than console gaming. Always.     We are Anonymous, We are Legion    Kick-ass interview   Great Flash Series Here    Anime Ratings     Make and Play Please
Amazing discussion about being wrong
Official VGChartz Folding@Home Team #109453
 

Sony will match Microsoft blow for blow. Selling the most consoles is the most important thing. Take losses early on for long term gain. PS3 price cut will happen within a month of a 360 price cut.



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drkohler said:
NJ5 said

"Dan, your second question, PS3 cost update, since the introduction the cost has drastically decreased. How much I cannot disclose it. However, we can expect that sometime in late fiscal year '08, the cost to be equal to the selling price. Currently, the cost is higher than the price, but toward the second half the fiscal year '08 we could catch up.

"toward the second half the fiscal year '08 we could catch up" - meaning sometimes between August and September this year. At the time of the interview, they were still cautiously wording their expectations (remember their prediction of 10mio PS3 sold in fiscal year 2008, almost the same number as fs2007). However, we see that PS3 has been selling at much higher rates this year compared to last year (Sony probably expected worse rates). If we assume that manufacturing runs generally take about 1-3 months until they reach shops, we are exactly in the right timeframe for profitability with units _currently in production_ (notice that I always stressed this point in my previous posts). If they could, as was hinted, reduce the costs even more than expected, it is entirely possible that some of the manufacturing runs from the last quarter of fs year 2007 are already cost neutral _now_. Again nobody knows for sure about the exact values except Sony, and they are not going to tell anyone.

 

 

Actually the second half of the fiscal year starts in October, and in another part of the quote he says "late fiscal '08" but enough with the nitpicking... The information is there, and it's what it is, now may each one interpret it as they want.

 



My Mario Kart Wii friend code: 2707-1866-0957

ssj12 said:
Kasz216 said:
BengaBenga said:
Kasz216 said:
ssj12 said:
alpha_dk said:
ssj12 said:

 

Well with Blu-ray music might get a second round in the HD music players again. Thats right music on Blu-ray in stunning quality.

http://www.highdefdigest.com/news/show/Surround_Records/Music_on_High-Def/Disc_Announcements/Tchaikovskys_Piano_Concertos_Audio_Blu-ray_Announced/1839

 

Lol?

 

I;m serious, I loved the idea of super-audio CDs back in the day. They offered a much cleaner sound then CDs. If they were Blu-Music Discs the audio quality would be amazing. 7.1 Uncompressed audio = awesome!

The problem is... you're about the only one.

If people cared about sound quality we wouldn't have CD's or Cassette tapes. Everyone would still be spinning the Vinyl.

Which is generally the problem. Your looking at this stuff from a tech enthusiasts point of view. Not from the view of the market as a whole.

I mean... why didn't Laserdisc catch on? It was better in every way. Why did VHS beat out Betamax when Beta was the better format?

These are the kind of things the tech enthusists miss.

 

Well, Vinyl is making a big return. The big electronic stores here all sell new Vinyl nowadays, so it's becoming mainstream again. All the new records are also printed on Vinyl.

I buy most of the stuff on vinyl, because it sounds enormously better. You don't need a professional audio set to hear that.

Are you sure it's becoming Mainstream? Last time I checked it was just traditional DJs and the same musicphiles. I'm sure it's percentage of the physical media has risen but that would be do to MP3's and stuff catching on.

 

Ya, it is basically those. And the group is called audiophiles not musicphiles. I'd still much rather have SACDs or Blu-CDs as they would be smaller and easier to store.

It still wouldn't be quite as good.  Even uncompressed it's not as good as analog... it comes a lot closer... but not quite.

 



ssj12 said:
Kasz216 said:
BengaBenga said:
Kasz216 said:
ssj12 said:
alpha_dk said:
ssj12 said:

 

Well with Blu-ray music might get a second round in the HD music players again. Thats right music on Blu-ray in stunning quality.

http://www.highdefdigest.com/news/show/Surround_Records/Music_on_High-Def/Disc_Announcements/Tchaikovskys_Piano_Concertos_Audio_Blu-ray_Announced/1839

 

Lol?

 

I;m serious, I loved the idea of super-audio CDs back in the day. They offered a much cleaner sound then CDs. If they were Blu-Music Discs the audio quality would be amazing. 7.1 Uncompressed audio = awesome!

The problem is... you're about the only one.

If people cared about sound quality we wouldn't have CD's or Cassette tapes. Everyone would still be spinning the Vinyl.

Which is generally the problem. Your looking at this stuff from a tech enthusiasts point of view. Not from the view of the market as a whole.

I mean... why didn't Laserdisc catch on? It was better in every way. Why did VHS beat out Betamax when Beta was the better format?

These are the kind of things the tech enthusists miss.

 

Well, Vinyl is making a big return. The big electronic stores here all sell new Vinyl nowadays, so it's becoming mainstream again. All the new records are also printed on Vinyl.

I buy most of the stuff on vinyl, because it sounds enormously better. You don't need a professional audio set to hear that.

Are you sure it's becoming Mainstream?   Last time I checked it was just traditional DJs and the same musicphiles.  I'm sure it's percentage of the physical media has risen but that would be do to MP3's and stuff catching on.

 

Ya, it is basically those. And the group is called audiophiles not musicphiles. I'd still much rather have SACDs or Blu-CDs as they would be smaller and easier to store.

And our point remains that when talking about the mainstream, those people don't mean anything. 

The market has consistently turned down physical media for downloadable media in music.  Overall physical media sales has been doing nothing but go down.

Are any of you going to try to make the argument than Vinyl sales have been going up by 20% of CD sales?  Because if not, the argument fails (and my guess: it fails).

The market HAS NOT chosen high fidelity, low loss physical media.  The market has chosen low fidelity digital media, and that's only going to continue.

You'll find that sales of high-fidelity digital media has been going up too (solely because of Radiohead and Nine Inch Nails, probably, but...).  They offered lossless versions of their music for sale in addition to the lossy formats.  Audiophiles won't be left in the dust; they will have an option too.  It will likely be a digital option.

Edit: In any case, this is offtopic (not that the topic was a bastion of intellectual discourse to begin with, but...) so I am going to start avoiding it now.



Please, PLEASE do NOT feed the trolls.
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  Current Status: 2009.01.10 70k till PKMN Yellow (Passed: Emerald, Crystal, FR/LG)

ssj12 said:
Kasz216 said:
BengaBenga said:
Kasz216 said:
ssj12 said:
alpha_dk said:
ssj12 said:

 

Well with Blu-ray music might get a second round in the HD music players again. Thats right music on Blu-ray in stunning quality.

http://www.highdefdigest.com/news/show/Surround_Records/Music_on_High-Def/Disc_Announcements/Tchaikovskys_Piano_Concertos_Audio_Blu-ray_Announced/1839

 

Lol?

 

I;m serious, I loved the idea of super-audio CDs back in the day. They offered a much cleaner sound then CDs. If they were Blu-Music Discs the audio quality would be amazing. 7.1 Uncompressed audio = awesome!

The problem is... you're about the only one.

If people cared about sound quality we wouldn't have CD's or Cassette tapes. Everyone would still be spinning the Vinyl.

Which is generally the problem. Your looking at this stuff from a tech enthusiasts point of view. Not from the view of the market as a whole.

I mean... why didn't Laserdisc catch on? It was better in every way. Why did VHS beat out Betamax when Beta was the better format?

These are the kind of things the tech enthusists miss.

 

Well, Vinyl is making a big return. The big electronic stores here all sell new Vinyl nowadays, so it's becoming mainstream again. All the new records are also printed on Vinyl.

I buy most of the stuff on vinyl, because it sounds enormously better. You don't need a professional audio set to hear that.

Are you sure it's becoming Mainstream?   Last time I checked it was just traditional DJs and the same musicphiles.  I'm sure it's percentage of the physical media has risen but that would be do to MP3's and stuff catching on.

 

Ya, it is basically those. And the group is called audiophiles not musicphiles. I'd still much rather have SACDs or Blu-CDs as they would be smaller and easier to store.

I think there's a kind of anti-movement going on versus the terrible quality of mp3. I know it won't be mainstream like mp3, but there are a lot of people, especially over 25, that like to spend money on beatiful things. Vinyl records are now sold here at MediaMarkt, which is comparable to Best Buy and Target. A really big retailler. If they have it on sale it's certainly not some obscure market that buys these things. This retailer is by the way also the biggest BluRay seller here. Blu-Ray and Vinyl are quite comparable. They appeal to people that want the best quality.

So yeah: It's for audiophiles, but that group is growing due to people being tired of low quality mp3's.

 



What's legend in denial of? Micorosoft spent billions just to put their foot in the door, and with the 360, they spent another billion to get it out first, and suffered the PR nightmare of the RRoD, and another billion. Now the system is profitable, and the PS3 is losing Sony billions.

How is that in denial to point out that it puts Microsoft it a good situation (even if I wouldn't put it in the words he did)?



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs