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Forums - Sales - Where to Allocate Another $1Billion(*) Loss for Sony in FY End Mar 2007?

bumidan on 28 July 2008

With some data change from Sony Website:

http://www.scei.co.jp/corporate/data/bizdataps3_sale_e.html

Basically, if you have seen my previous Sony analysis - the biggest change is that I used a 5.5 million PS3s sold whereas that was the production figure.

This link indicated that only 3.61 million PS3s were sold (recognized as revenue/profit in the financial statements).

If I use all the same date, there is another  US$1 Billion loss to be attributed to the Game Division.

Any ideas?  Or is it really all PS3 related?

Or PS3 software development?

Discuss.



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libellule on 28 July 2008

sorry,

but if Sony sold less console, they lose less money ?

Am I right ?



Time to Work !

colonelstubbs on 28 July 2008

Lets all blame the PS3! Global warming, sonys financial woe, prostitution....goddamn PS3!



I hope my 360 doesn't RRoD
         "Suck my balls!" - Tag courtesy of Fkusmot

Yojimbo on 28 July 2008

I feel stupid for not understanding this :S



 
|_emmiwinks on 28 July 2008

Depends if the reports that the PS3 is breaking even are true or not, if they are loosing money on each console sold they actually will have lost less money for the FY.



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"

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bumidan on 28 July 2008
libellule said:
sorry,

but if Sony sold less console, they lose less money ?

Am I right ?

Nope. they don't lose less money because they already reported the losses.  Its a "fixed" loss of US$1,969 million for FY end Mar 2007.

My question is:

Where to allocate all the "additional" losses.  Because using the original $481(*) LOSS per PS3 console, there is another $1Billion in losses that is not allocated.

Unless the loss per console is greater - which is most likely the case.

Loss per console means:

consoles sold divided by (fixed costs + variable costs)

By definition, it would increase loss per console for the PS3.  Unless other costs are attributed to the other divisions - in this case PS3 software.

Otherwise, it doesn't make too much sense for PS2 and/or PSP to be "losing money", does it?

That is why I posted the original question.  I AM NOT SURE - HENCE THE QUESTION.

 

 



bumidan on 28 July 2008
colonelstubbs said:
Lets all blame the PS3! Global warming, sonys financial woe, prostitution....goddamn PS3!

Not blaming.  Asking a question.

If you have more information, please tell us OR give us your analysis.

Again, the point is to have a "good working model" to base future sales and profit analysis.

 



bumidan on 29 July 2008

bumping on the eve of Sony's earnings release



kingofwale on 29 July 2008

well, they can "claim" as cash put aside due to repair costs...

heck, everybody's doing it. ;)



Soriku (Feb 10/08): In 5 years the PS3/360 will be dead.

KH3 bet: "If KH3 comes to Wii exclusive, I will take a 1 month of sig/avatar by otheres open a thread apologize and praise you guys' brilliance." http://vgchartz.com/forum/thread.php?start=50&id=18379
Original cast: Badonkadonkhr, sc94597 allaboutthegames885, kingofwale, Soriku, ctk495, skeezer, RDBRaptor, Mirson,

Episode 1: OOPSY!
selnor: Too Human I even expect 3-4 mill entire life and 500,000 first day. GoW2 ( expect 7 - 9 million entire life and over 2 mill first day), Fable 2 (expect 5-6 million entire life and 1.5 mill fist day) BK3 (expect 4 - 5 mill sales entire life and 1 mill first day).. Tales/IU/TLR should get to 2 or 3 million! post id: 868878
Episode 2:
Letsdance: FFXIII (PS3+360) first week in NA = 286K
According to pre-order rate in week 13 (post id: 2902544)
ils411 on 29 July 2008

R&D? software? they have been working on games since time immemorial which, up to now have not been released yet *cough*killzone2*cough*