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Forums - Sony - Sony Has Lost More on the PS3 Than it Made on PS2

celine on 20 August 2008
ookaze said:

From the 3 console makers own official fiscal reports : http://www.neogaf.com/forum/showthread.php?t=111003

Tentative to reproduce some here :

FY* Sony** Nintendo Microsoft 1998 974,000,000 629,000,000 1999 1,130,000,000 645,000,000 2000 730,000,000 421,000,000 2001 -409,000,000 726,000,000 2002 623,000,000 800,000,000 -750,000,000 2003 939,000,000 560,000,000 -1,191,000,000 2004 650,000,000 316,000,000 -1,215,000,000 2005 404,000,000 777,000,000 -485,000,000 2006 75,000,000 894,000,000 -1,262,000,000 2007 -1,969,000,000 1,489,000,000 -1,892,000,000 2008 -1,265,000,000 2,480,000,000 426,000,000 2009 51,000,000 1,026,000,000 Totals 1,953,000,000 10,762,000,000 -6,369,000,000




There you have it. The PS3 ate up all the PS2 profits already and then some of the PS1 profits.

In more than 10 years, the total profit of Sony Entertainment division (which includes Playstation mostly) is barely equal to its first 2 years of profit.

/thread

 



 “In the entertainment business, there are only heaven and hell, and nothing in between and as soon as our customers bore of our products, we will crash.”  Hiroshi Yamauchi

TAG:  Like a Yamauchi pimp slap delivered by Il Maelstrom; serving it up with style.

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jacezo on 20 August 2008

um dude this is only including hardaware with soft ware including i think recently theyve been breaking even with software included



PLAYSTATION®3 is the future.....NOW.......B_E_L_I_E_V_E

 

Consoles owned: Game Cube, Gameboy Color, Gameboy Advance, Nintendo DS, PSP, PS1, PS2, PS3.

My prediction: NATAL WILL NOT help 360 sales. Maybe a 50-100k boost week 1, then a 30-70 k boost week 2, and back to the norm again after 3-5 weeks.

jacezo on 20 August 2008

i hate this thread it is so negative



PLAYSTATION®3 is the future.....NOW.......B_E_L_I_E_V_E

 

Consoles owned: Game Cube, Gameboy Color, Gameboy Advance, Nintendo DS, PSP, PS1, PS2, PS3.

My prediction: NATAL WILL NOT help 360 sales. Maybe a 50-100k boost week 1, then a 30-70 k boost week 2, and back to the norm again after 3-5 weeks.

reask on 20 August 2008

Having read through the thread I have to say.

With the hits these companies take you would wonder why they bother.

I mean all three btw.
It really is an expensive business to be trying to win.



 

 

 

 

steven787 on 20 August 2008
celine said:
ookaze said:

From the 3 console makers own official fiscal reports : http://www.neogaf.com/forum/showthread.php?t=111003

Tentative to reproduce some here :

FY* Sony** Nintendo Microsoft 1998 974,000,000 629,000,000 1999 1,130,000,000 645,000,000 2000 730,000,000 421,000,000 2001 -409,000,000 726,000,000 2002 623,000,000 800,000,000 -750,000,000 2003 939,000,000 560,000,000 -1,191,000,000 2004 650,000,000 316,000,000 -1,215,000,000 2005 404,000,000 777,000,000 -485,000,000 2006 75,000,000 894,000,000 -1,262,000,000 2007 -1,969,000,000 1,489,000,000 -1,892,000,000 2008 -1,265,000,000 2,480,000,000 426,000,000 2009 51,000,000 1,026,000,000 Totals 1,953,000,000 10,762,000,000 -6,369,000,000




There you have it. The PS3 ate up all the PS2 profits already and then some of the PS1 profits.

In more than 10 years, the total profit of Sony Entertainment division (which includes Playstation mostly) is barely equal to its first 2 years of profit.

/thread

 

 

Also note Fiscal 2009 is positive now because they didn't sell too many PS3's compared to PS2 and PSP... If PS3 has a good holiday season, Sony has a bad fiscal...

Reask, to answer your question, look at the first 7 years.

Edit1: Also to be fair, that doesn't include initial PS1 development costs.

Edit 2: @Jacezo, no those include the entire game division.



I would cite regulation, but I know you will simply ignore it.

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reask on 20 August 2008

@ steven 787.
From what I am reading ms have done the worst overall.

And nintendo is on top.
Is this correct?



 

 

 

 

celine on 20 August 2008
reask said:
Having read through the thread I have to say.

With the hits these companies take you would wonder why they bother.

I mean all three btw.
It really is an expensive business to be trying to win.

Because they can control the contents ( even third-party contents ) on their platform ( digital distribution surely will make the things more interesting in the future ).

In the case of Nintendo specifically, they are basically a software house. Having a platform where releasing their software grant them to be independent by other companies ( and not paying royalty ). The integration between hadrware and software also became its competitive advantage in the industry.



 “In the entertainment business, there are only heaven and hell, and nothing in between and as soon as our customers bore of our products, we will crash.”  Hiroshi Yamauchi

TAG:  Like a Yamauchi pimp slap delivered by Il Maelstrom; serving it up with style.

steven787 on 20 August 2008
reask said:

@ steven 787.
From what I am reading ms have done the worst overall.

And nintendo is on top.
Is this correct?

 

MS doesn't care, they'll keep doing this until someone quits (maybe themselves).  They like to be the only major player... it's not going according to plan... in all seriousness, they seem to have changed their plan to a more realistic one - the same one Nintendo had last gen.  Focus on making money off of what you got.  Next gen, I wouldn't be surprised if they did something similar to the Wii (from a business pov, not a gaming pov).

I'm not knocking Sony, $2 billion profit is still a lot of money.  And this year will probably end well, as long as they don't sell too much PS3 hardware.  If MS pulls a Wii in 2012 and Nintendo releases something around the PS3 in power Sony can drag the PS3 well into the next decade.

Yes, Nintendo makes money, they always have just not to this degree of ridiculousness.



I would cite regulation, but I know you will simply ignore it.

reask on 20 August 2008

@ steven787.
But can any company survive on that basis?



 

 

 

 

steven787 on 20 August 2008

Which one, Sony?

Sony is not leaving the VG industry. It accounts for the largest portion of their revenues (can't find documentation, too tired to look). They will just have to do better though the end of this cycle and through the next cycle. They would have to lose more than a couple of billion dollars to leave the VG industry. Remember that chart doesn't include all the money they made by putting DVD players, CD players and now Bluray players in people's homes.

Bluray is going to make them a lot of money in the next decade.

Microsoft, will be back for the next round but they are going to have to be more fiscally conservative and more innovative to justify round 4.



I would cite regulation, but I know you will simply ignore it.