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Forums - Sony Discussion - Sony Game Division – Concerns and Challenges Moving Forward

bumidan said:
blackstar said:
what about the other divisions?
if they make good money there , they may use it in the gaming division, right?
and good thread bumidan

I guess they can do that, but not likely.  Other divisions won't be happy if the game division affects their division profits.  Coz generally people get paid better if their divisions are successful.

 

 

 yeah they won't :(

anyway ur thread rules ,, ;)



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bumidan said:

 

PS3 Software

Software is generally a bright spot for Sony.  While it may not have the same attach rates as the X360, the numbers that Sony reports is quite positive.

 

Based on my previous thread, Sony should “ship” about 100(*) million units of PS3 software for the next 12 month ending Mar 2009.  Last FY, they shipped 54.1 million units.

 

With that much software, this part of the business should be profitable.

 

I would like to know what the 360's software shipments were for its whole first year, and second year. 

March 06' - 07'  and March 07' - 08'

As you put it Sony's first full year 54.1 million and you preject 100 million for second full year.

 Mach 07' - 08' and prejected March 08' - 09'

 

Everyone always says the 360 is software king and sells a ton all the time, so would like to compare and see if this 50 million increase in sales for a year is a logical guess or not.



@irstupid

MSFT doesn't report software shipments the way Sony reports it.
However, it can be inferred in various press releases.

For Sony, I'm not sure what they mean by software - if it is just 1st party or all software.
Same goes for MSFT.

For now, I guess in my analysis and assumptions - I use a broadbased average "profit" for software.

So in the previous Sony analysis, I used a $2(*) NET PROFIT on all software as an average. With the $2(*) figure, all the numbers seem to make some sense.



Seems to me Sony reports all software shipped, not just 1st party.

They get a cut from all PS3 software sold so it would be odd for them to not report it. Unless Sony 1st parties shipped 54 million units last year. Which seems kinda high.



I'm sorry but when your 5 million units sold behind second place, that is never considered a tie.



Had to change my sig to get some moderator to quit bitching about it......

 

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I think it's time for Sony to accept lose of the first place. But if you really think about it, is 3rd place really that bad? 3rd does not mean you are a loser. I'm happy that Nintendo has regained it's throne and I want them to be around forever because for me, Nintendo is video games. I think Sony's time in the sun was merely a phase and it's about time they stopped thinking about winning the console race and started thinking about how to SAVE the PS3 from complete failure. As for MS, they have a good system and deserve some credit. They have put a lot of work into the 360 and made it fun and affordable for everyone.





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WarmachineX said:
I think it's time for Sony to accept lose of the first place. But if you really think about it, is 3rd place really that bad? 3rd does not mean you are a loser. I'm happy that Nintendo has regained it's throne and I want them to be around forever because for me, Nintendo is video games. I think Sony's time in the sun was merely a phase and it's about time they stopped thinking about winning the console race and started thinking about how to SAVE the PS3 from complete failure. As for MS, they have a good system and deserve some credit. They have put a lot of work into the 360 and made it fun and affordable for everyone.

 

 Lol so Nintendo regained their throne and Sonys time (much longer that Nintendo in the lead) was just a phase until your childhood company came back.Two ideas here:

First ,Nintendos throne wasnt ever worlwide(the Nes wasnt released in Europe until very late in the 80s and was second runner against european computers for gaming and later for the 16 bits consoles).The Snes was very succesful worlwide ...but it had nearly a tie with the Sega Genesis/Megadrive in US and Europe it only won Japan clearly.

Second,Nintendos throne ,even taking in count what I said before ,was about core gaming.They mocked the casuals.Their games were hard and challenging.Now they have had to change the public they address to to regains success.

Third ,what about if the Wii is also simply a phase in videogame history?Or do you really believe Nintendo will win each and every generation from now on without getting accomodated and commiting mistakes because arrogance that even now they cant hide?



Sounds like Sony's game division is on red alert. A constant money sink hole with no end in sight, and their golden goose is running out of time. Yes, the PSP cannot replace the PS2 and the PS3 will be lucky if they start breaking even on hardware. Since Sony has not targeted casuals yet with their PS3, they are relying almost 100% on the hardcore for game sales which usually only buy the blockbusters so their software sales probably wont improve much cause theres usually only a handful of good games every year. This is the same problem the original Xbox had.



We have to recall that many of SCE's losses in 2006 and 2007 came from buying studios like Guerrilla, Zipper, and Evolution Studios, as well as developing games, etc. The losses aren't strictly from selling the ps3 at a loss.



I think the impending "demise" of the PS2 is the most concerning, since that's where the bulk of the profits are generated.

Therefore it is imperative that the PS3 and PSP increase profitability as quickly as possible.

If the video downloads are successful, then that will help a bit. Because MSFT claims that about 1/3 of downloads on live are videos. So hopefully, if Sony puts enough good content there, they can offset their losses.

Hopefully, the Movies and even the Music division cooperates with the Gaming division - which might not necessarily be the case. Because they have a LOT of content that people would want to buy.