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

reask on 20 August 2008
steven787 said:
Which one, Sony?

Sony is not leaving the VG industry. It accounts for the largest portion of their revenues. 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.

Sorry I meant to say Microsoft.

 



 

 

 

 

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steven787 on 20 August 2008

It's okay I should have waited for you to answer... lol.



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

steven787 on 20 August 2008

Can MS survive on the basis of killing competition...

They think of it like a fight, come out swinging try to win it in the first couple of rounds then dominate, abuse, and prohibit competition. It worked for Sony, but it was almost unintentional with Sony, they weren't selling PS1 at a loss. It worked when MS did it in a lot of other fields.

What is impressive is how quickly they changed models when they realized that they weren't going to dominate. These are very big companies (all three), they can't just stop on a dime and change direction that easy. People expected (the real) 360 to be $299 by now, but deciding to keep the price high they were able to turn a profit. Honestly, I still don't think a price cut is necessary.

They are selling hundreds of thousands of consoles a week, why lower the price?

Christmas is coming, 50 bucks isn't going to drive a long term increase, I don't really get why they would... I still don't believe that the 360 is dropping Sept 7. There's no reason to. They have no control over whether the PS3 is going to pass them or not in the long term- and it doesn't matter. Companies LIKE making games for the 360, it's got a high attach rate and looks to continue that and it is easy to port from PC or PS3.

But even if it does drop, I would think they must no more about the holiday market conditions. Maybe, the execs are under pressure to beat PS3 from MS home office or the board... a 200/300 360 guarantees that PS3 will not pass 360 this year. Maybe they really cut costs so much, have recouped initial development, or eliminated some other cost - like not having to fund Too Human anymore :P

Neither console needs a price cut. They really need to push this generation longer so that higher development, higher performance demands, and longer dev cycles can catch up to the current situation. They need to hold off so that people feel like it's time for the next gen - so they are eager for the next console.



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

jacezo on 20 August 2008
Rainbird said:
steven787 said:
If they are losing $260 or $200 (3b/15m) per console no game or games is going to turn that into a profit.

Do we know how much profit Sony gets averagely pr. game sold?

Could be fun to know, just how big the attachratio had to be for Sony to break even xD

 

 it does better for now cuz they r still more 360s out but onw the ps3 goes ahead it will destroy the 360 in sw sales



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
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.

holy shit this shouldnt be about sonys faliure it should be on microsft

 



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.

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jacezo on 20 August 2008

i think its funny that everybody already thinks that microsoft is a faliure



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.

steven787 on 20 August 2008

Jacezo, your last 3 posts make little sense.



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

AnarchyWest on 20 August 2008

 

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...

 

steven787 said:
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 Microsoft1998 974,000,000 629,000,0001999 1,130,000,000 645,000,0002000 730,000,000 421,000,0002001 -409,000,000 726,000,0002002 623,000,000 800,000,000 -750,000,0002003 939,000,000 560,000,000 -1,191,000,0002004 650,000,000 316,000,000 -1,215,000,0002005 404,000,000 777,000,000 -485,000,0002006 75,000,000 894,000,000 -1,262,000,0002007 -1,969,000,000 1,489,000,000 -1,892,000,0002008 -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

 

2007 Q1 Sony sold nearly 4 million PS3 units ww...If they sell 5-6 million with the new core 80GB are they still going to post negative ? Have the manufacturing costs decreased since last year?

http://vgchartz.com/hwtable.php?cons%5B%5D=PS3®%5B%5D=Total&start=39362&end=39446

 



Jason77 on 20 August 2008

In the gaming industry' view, PS3 is losing money. But see on a business market, Sony is actually making money.

As we all know that PS3 is not only focus on Gaming industry But Sony home Entertainment Market. Example people buy a HD TV, most of them will also bought a PS3 because of the blu ray. So every HD tv and Blu ray movie sold, Sony is making more profit than what they had lost in PS3.

This is the reason why PS3 is using blu ray and not like 360 using DVD. you all can go check how much will sony earn when they sold a Blu ray disk.



gengka on 20 August 2008

i dun need to care abt Sony's profit or loss, coz i am not a Sony shareholder myself. but the fact that Sony has used alot of money to invest and create a great hardware this generation, really benefits the users, including me, a happy ps3 owner.