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Forums - Sales Discussion - PS3 - $11 Billion Loss since 2005

Ps3_GOW on 22 June 2008

That's just change for Sony they'll get that money back



You can't help but root for the underdog, GO PS3!

End of 08' Sales

Wii:                      39.56

Xbox 360:           24.75

Playstation 3:     20.58

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Magera on 22 June 2008

^I Agree. Why all the negatives about sony lately?

And yeah, I too think that $11 Billion is to high. Maybe $5 - $6 billion. For one thing, Sony wouldn't be making $10 per game sold... more like $3-$4 tops on average, especially with how cheap ps2 games sell.

PS3 Games on the other hand, they'd be making a bit more because not only do they charge a royalty for the game on the platform, would they not also be getting royalty from each blue ray disk too?



It's me...  no really, it IS me!!!

kamil on 22 June 2008

@NJ5: Ok, so never since end of PS1 era. I actually included the 1 bilion number after reading your post, before I wanted to be more vague about this.

So you are assuming that PS2 and PSP made at least 1.9 bilion in 2005-07? I'm not saying they didn't but I wouldn't be that sure as you are.



*bleu-ocelot* on 22 June 2008

Sony and Playstion will bounce back.Just you wait and see.Their gaming division has always been their most profitable,and I doubt they'll give it up.



Magera on 22 June 2008

@ Bleu-ocelot

True. This is their first time in over a decade of gaming that they have lost. I too am sure they will bounce back as they know what it is like to be on top, they know how much money they can make from it.



It's me...  no really, it IS me!!!

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rasone77 on 22 June 2008

It sounds like the OP just made everything up, where are your sources?



bumidan on 22 June 2008

To All:
All figures are taken from Sony financial reports.
Operating Income/Loss and Units Sold.

For example:
FY ending Mar 2008
PS2 sold = 13.73 million
PSP sold = 13.89 million
PS3 sold = 9.24 million
PS2 software = 154 million
PSP software = 55.5 million
PS3 software = 57.9 million

FY ending Mar 2007
PS2 sold = 14.2 million
PSP sold = 8.36 million
PS3 sold = 5.5 million
PS2 software = 193 million
PSP software = 54.1 million
PS3 software = 13.2 million



|_emmiwinks on 22 June 2008
bumidan said:

PS3 analysis - based on 3 years ending Mar 31, 2008 - from Sony reported figures.

Based on the following Assumptions:

PS2 Hardware - Sony makes $15 per unit, after all related costs, including marketing, R&D, etc.

PS2 Software - Sony makes $10 per unit, after all related costs

PSP Hardware - Sony makes $10 per unit, after all related costs

PSP Software - Sony makes $10 per unit, after all related costs

Based on the past 3 fiscal years, ending Mar 31, 2008 - taken from actual Sony reported figures.

Assuming PS3 costs started in fiscal year ending Mar 31, 2006.

2005 - PS2 and PSP Operating Income = US$3.03Billion

2005 Actual Operating Income = US$75 Million Dollars

2005 Loss attributed to PS3 Hardware and Software development, research and other costs = US$2.95 Billion Dollars

2006 - PS2 and PSP Operating Income = US$2.7 Billion Dollars

2006 Actual Operating Income (Loss) = US$(1.969) Billion Dollars

2006 Loss attributed to PS3 = US$4.74 Billion Dollars

2007 - PS2 and PSP Operating Income = US$2.09 Billion Dollars

2007 Actual Operating Income (Loss) = US$(1.245) Billion Dollars

2007 Loss attributed to PS3 = US$3.34 Billion Dollars

TOTAL CUMULATIVE LOSSES FOR PS3 (Software and Hardware) = 2.95+4.74+3.34 = 11.03 Billion Dollars

 

The only way to lessen the losses, based on the numbers is to assume that PS2 and PSP are LESS profitable.

In that scenario, then it would be hard to justify to assume that Sony takes massive losses now to gain massive profits in the future.  2005 would seem to be the height of the PS2 so I assumed that PS2 was wildly profitable.  In this example, approx. $2 to $3 Billion dollars in profit.

 

Please discuss.

 

The PS2 is a 10 year old peice of hardware still being sold for 100 dollars. I guarantee you that they are making more then 15 dollars a unit. I also guarantee you they are making far more per game sold for the system, and it is still typically outselling the 360 and the PS3 week over week, or was a few months ago.

 

Also I find an entire post based on "Assumptions" distasteful.



I own all three current consoles and a great gaming rig, now thats out of the way.

This space Reserved for the Nuggets of Wisdom dropped by Bladeforce:

"Why post something like this when all it will get is PS3 owners blinded to reality replying? BOTH THE PS3 AND BLUE-RAY WILL NOT LAST 3 YEARS! TECHNOLOGY CHANGED TOO FAST!"

"is it Wii FIt that has sold as many as PS3's sold? Thats a LOL Look at the total sales of software is it just me that sees Nintendo titles hitting 10m+ and you say they arent making a difference? Another LOL!"

"Hell, with all the negative hype Sony spin, people just aren't interested cost is too high and to get the true HD experience (1080p, 7.1 surround) you will need a $1000+ system. THAT IS GOING TO DO IT IN A RECESSION! PS4 will not happen"

Rock_on_2008 on 22 June 2008

This thread fails. Full of lies.



JiaJia on 22 June 2008

couldnt be bothered reading it ...

love it though when people who have no financial knowledge start making "assumptions" and finish with "discuss" ... over n out ...