By using this site, you agree to our Privacy Policy and our Terms of Use. Close

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

rocketpig on 20 June 2008
drkohler said:
starcraft said:

For more information on why I'm right and your wrong, hit the link:

http://www.vgchartz.com/forum/post.php?id=886560

This link of yours points to a (badly researched) article from early May that quotes from data from last fiscal year. Almost to the end of last fiscal year, Sony sold the rest of first generation PS3s and the remainder of 2nd generation PS3s, as well as 3rd generation PS3 (40G units). We can estimate the loss for a 1st generation PS3 to be around $400 and around $200 for 2nd generation PS3s and considerably lower for 40G units. This results in rather heavy losses at the end of last fiscal year. Manufacturing costs for latest generation of 40G PS3 in production now can be estimated to around $350 (+10%/-5%). As the PS3 currently sells at over $600 in Europe/Oceania, an the PS3 sells best in those regions, it could very well be that already now, the PS3 manufacturing is roughly dept free. So it could very well be that PS3 production is profitable from this new fiscal quarter on, maybe even significantly when increased software sales are taken into account.

That's fine and dandy but explain one thing to me:

How did Sony lose $280m from Jan-Mar if the PS3 is nearing a breakeven point?

You know that those losses didn't come from the PS2 and PSP, that's for sure.

 




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

Around the Network
NJ5 on 20 June 2008

@drkohler:

Actually, the PS3 sells for little more than 500 usd in Europe. It depends on the country, but assuming a tax level of 20% it's $518 at today's exchange rates.

 



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

Bodhesatva on 20 June 2008
drkohler said:
starcraft said:
 

For more information on why I'm right and your wrong, hit the link:

http://www.vgchartz.com/forum/post.php?id=886560

This link of yours points to a (badly researched) article from early May that quotes from data from last fiscal year. Almost to the end of last fiscal year, Sony sold the rest of first generation PS3s and the remainder of 2nd generation PS3s, as well as 3rd generation PS3 (40G units). We can estimate the loss for a 1st generation PS3 to be around $400 and around $200 for 2nd generation PS3s and considerably lower for 40G units. This results in rather heavy losses at the end of last fiscal year. Manufacturing costs for latest generation of 40G PS3 in production now can be estimated to around $350 (+10%/-5%). As the PS3 currently sells at over $600 in Europe/Oceania, an the PS3 sells best in those regions, it could very well be that already now, the PS3 manufacturing is roughly dept free. So it could very well be that PS3 production is profitable from this new fiscal quarter on, maybe even significantly when increased software sales are taken into account.

 

Last fiscal year ended in March. That's just over two months ago!

And by "badly researched" do you mean "stripped directly from Sony's financial reports?" Because they directly and explicitly gave the 130 dollar figure themselves. Sony said it. The end.

Or would you like to argue that just in the last two months, Sony has shaved another 100 dollars off the PS3's price? As Rocketpig said, how did Sony manage to lose ~280 million dollars last quarter, when the PS2/PSP are unquestionably making money (meaning that the actual losses would have been even greater if the PS2/PSP did not exist)? Where did those losses come from? Did magical gnomes steal their reserves in the night?

Goodness, you can't stay stuff like this on a forum dedicated to sales. Too many people have the info, you are going to get called on it.

http://www.sony.net/SonyInfo/IR/financial/fr/07q4_sony.pdf

 



http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">http://i14.photobucket.com/albums/a324/Arkives/Disccopy.jpg%5B/IMG%5D">

kn on 20 June 2008

I'm hoping they do drop the price to $299 this holiday and bundle it with a Dual Shock and a decent game like ratchet or uncharted. I'll be playing beyond immediately...

Please, MS, drop the price of the 360 so Sony is forced to follow suit.



I hate trolls.

Systems I currently own:  360, PS3, Wii, DS Lite (2)
Systems I've owned: PS2, PS1, Dreamcast, Saturn, 3DO, Genesis, Gamecube, N64, SNES, NES, GBA, GB, C64, Amiga, Atari 2600 and 5200, Sega Game Gear, Vectrex, Intellivision, Pong.  Yes, Pong.

LordTheNightKnight on 20 June 2008

Again, whether the 360 gets a price drop depends on how profitable it is right now, and how much it will be by the end of the year, and as stated, how quickly it gets the less expensive chipsets.



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

Around the Network
starcraft on 21 June 2008
drkohler said:
starcraft said:

For more information on why I'm right and your wrong, hit the link:

http://www.vgchartz.com/forum/post.php?id=886560

This link of yours points to a (badly researched) article from early May that quotes from data from last fiscal year. Almost to the end of last fiscal year, Sony sold the rest of first generation PS3s and the remainder of 2nd generation PS3s, as well as 3rd generation PS3 (40G units). We can estimate the loss for a 1st generation PS3 to be around $400 and around $200 for 2nd generation PS3s and considerably lower for 40G units. This results in rather heavy losses at the end of last fiscal year. Manufacturing costs for latest generation of 40G PS3 in production now can be estimated to around $350 (+10%/-5%). As the PS3 currently sells at over $600 in Europe/Oceania, an the PS3 sells best in those regions, it could very well be that already now, the PS3 manufacturing is roughly dept free. So it could very well be that PS3 production is profitable from this new fiscal quarter on, maybe even significantly when increased software sales are taken into account.

Can you offer ONE single link proving that a) My link is incorrect and/or b) The $350 figure you pulled out of you're ass is remotely justified?

 



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

Username2324 on 21 June 2008
starcraft said:
dallas said:
So Sony has had some losses w/ the PS3? Big deal, the addition of the Blu-ray drive has allowed Sony to get some fat coin from the Blu-ray related business. Bd is already selling at 10% of the physical media market in america so that means that for every 9 dvds sold, there is one Blu-ray movie sold. That is a pretty big thing if you ask me.

Blu-Ray revenues have to be split between the dozens of members of the Blu-Ray forums.

Also, Blu-Ray itself would have cost billions to develop, a cost that wouldn't be reflected in the game division losses.

Add to that the fact that the moment the Blu-Ray market gains any traction piracy will ramp up exponentially in a way DVD never faced early on, and the threat of downloads, and you have the very real possibility Blu-Ray succeeding wont have been worth the sacrifice of the gaming division for Sony.

 

Billions? I don't think so buddy, no one in their right mind would invest that much into a disc, and unless you start using credible sources, I will be calling bullshit on every post you make.

 



starcraft on 21 June 2008
Username2324 said:

Billions? I don't think so buddy, no one in their right mind would invest that much into a disc, and unless you start using credible sources, I will be calling bullshit on every post you make.

Well as you feel sources are so important, please link me to an article stating Blu Ray cost less than a billion dollars to develop?

If you want to know why it would be worth investing that much money in a disc, go to Wikipedia and type in "DVD."

 



starcraft - Playing Games = FUN, Talking about Games = SERIOUS

BengaBenga on 21 June 2008

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



starcraft on 21 June 2008
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.

 



starcraft - Playing Games = FUN, Talking about Games = SERIOUS