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Forums - Sony - Perry: "Sony has no chance of making money on the PS3"

forevercloud3000 said:
Some of you are fairly dense. Most systems these days never make a profit from the actual console. They make majority of it from royalties on games. It doesnt matter that they spent up all the money made from console sales of the PS2. They still have not spent up the money from the mountains of money made from royalty game sales.
By "never" what exactly do you mean... because in that context it means never, as in never ever, which means you are wrong... even the Xbox hardware was profitable near the end of it's life... although that couldn't make up for the billions lost developing it and 3 years+ selling at a loss
The PS2 hardware was profitable per system by 2003, and will have made up any losses associated with it by now I am sure (probably 2-3 years ago)
The X360 is currently, or very near profitable, and if they don't cut it's life short like the Xbox, then hardware-wise it should just eke out a small profit of it's own.


The PS2 spent majority of the money made on the PS1 as well if you didnt know. Why should the PS3 be any different? All this is is marketing spin to have people's trust of Sony waver.j
No it didn't.... the transition from PS1 to PS2 lost Sony $409million for the FY2001, now it is difficult to seperate PS1 profit from PS2 loss, but considering they made over $3.5 billion before the PS2 launched I think I can safely say that not all of it was wiped out by PS2 losses. Since PS3 launch however, PS division lost almost $2 billion the first year, and almost $1 billion the second year, that's $3 billion despite still profiting on PS2 and PSP, so it's quite obvious if we could seperate the platforms PS3 would have lost well over the entire PS2 profits (up to PS3 launch)
Sony will make their money back in a few ways...
True, they should make some money back eventually... but if we could split up the PS division and see exactly what PS3 hardware, or even PS3 as a whole, has lost... I very much doubt the PS3 will be bringing it all back on it's own.
-from game royalties on their system True
-soon the system will be able to break even, or at least make a small profit Maybe in about a year yes.
-Now that blue ray is nxt in line to take the format throne, it will be bringing them in mounds of cash(and it is not owned by like 10 companies, its about three. Sony, Phillips, Pioneer, these are the creators)I think you are confusing it's supporters for the founders. There is a BDA that all support BDA but it is a creation of the companies I named before meaning they get much larger cuts.
-Home advertisements and saleable goods within the product
etc

Sony has nothing to worry about in the long run, this is why they sold it at a loss in the first place
Again true... Sony has nothing to worry about, the PS2 and in part the PSP will be able to hide the massive losses, and perhaps help the PS division to make a rofit across the PS3 lifespan (ie from launch of PS3 to launch of PS4, will they make a profit, they are currently $3 billion down, although they managed a small profit last quarter I believe)

 

 



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DMeisterJ said:
The_vagabond7 said:
Seeing as how Sony has lost more money on the PS3 than they made on the PS1 and PS2 combined, I would have to agree with that. It will some day "make money" but not anywhere close to the extent that it lost money.

Errr... no.

The PS3 has lost the amount of money that they made during the PS2 era, give or take a few million.

It hasn't lost PS1 money yet.

I can't find the thread, but they've *only* lost 3.2 billion (Sounds so weird using only and 3.2 billion in one sentence) on the PS3, and they made almost that during the PS2 era.

The 2 billion or so the PS1 made is still here.

 

they still over all make money.

sony its not just a game division, but taking a hit like this its quite impressive nonetheless

they may not recover the money with the ps3 but they will with other business since sony overall gets huge profits.



If Sony ever makes a cent off the PS3 it's going to come from Blu Ray royalties.



Jo21 said:
DMeisterJ said:
The_vagabond7 said:

 

they still over all make money.

sony its not just a game division, but taking a hit like this its quite impressive nonetheless

they may not recover the money with the ps3 but they will with other business since sony overall gets huge profits.

Fair's fair. The gaming department pulled kept Sony as a whole from going too far into the red during the mid-PS2 days: now the rest of the company gets to return the favor. Turnabout IS fair play...

Soriku said:

Well...he may or may not be right but do you know who this guy is from? You know...Acclaim. A company who's making like...no money. Ironic coming from him.

That just makes him an expert on not making money, and therefore gives his words more weight in this discussion.

 



Sony will definitely not make the same amount of money off the PS3 that they did with the PS2, but it's pretty foolish to think that they won't at least break even, especially if they delay the PS4 until 2013 or so.

Consider the following:

Sony made about $50,000,000 last quarter despite the huge amount of PS3s sold at Sony's loss.

The new 80GB and 160GB PS3s about to be released are almost definitely profitable. If true, that means that the only things that will be dragging Sony's profits down would be game/software development and upkeep as well as future price cuts.



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HappySqurriel said:
tombi123 said:
HappySqurriel said:

The 'Losses' of the PS3 start long before it was released being that Sony spent billions of dollars in research and development in order to produce the PS3 so it is unlikely that Sony will ever recover the money that they have 'Lost' on the PS3 so far ...

The thing which will (truely) make this look particularly bad for Sony is that they will have to release a follow up console for the PSP in the next couple of years, and then a follow up for the PS3 soon after that, and since the PS3 will never be as profitable as the PS2 was it will be difficult to hide the expenses associated with launching consoles.

 

Yeah, I think we will know when their new consoles are coming lol.

Do you really think the PSP will not be replaced in Norh America and Europe within a couple of years with how software is selling? Do you really believe the PS3 will not be replaced by the end of 2012? The loss leader business strategy requires massive expenses 12 to 18 months before a console launches and 12 to 18 months after a console launches, do you really think a console which will (likely) have sold to less than half of the PS2 will be able to handle the expenses as well as the PS2 did?

 

I was agreeing with you. 

 



noname2200 said:
Domicinator said:
DeotoxSlayer said:
Domicinator said:
DeotoxSlayer said:
AnarchyWest said:
DMeisterJ said:
The_vagabond7 said:

 

But will they ever manage to make back the $6,369,000,000 they lost. They definetly won't be doing that this gen and maybe not even next gen.

The only company that seemed to do really well is Nintendo who apaprently has never lost money off their gaming systems.

 

They may not, but they can afford it. Sony can't. People seem to forget the dire straits that Sony was in on the whole before the PS3 hype kicked in. The new execs were cutting products left and right and revamping like crazy. I think Sony is in more trouble financially than they let on at the moment. The main problem in the past has been that different divisions of Sony in different parts of the world can't seem to communicate well or agree on how to run the company. That may be fixed now, but the PS3, so far, is another product that they can't seem to make money on.

Can they really? In the past two years alone, Microsoft's "war chest" has been halved, having lost over $30 billion. They face increasing competition on all fronts, and aside from their OS division none of their ancillaries are really striking pay dirt: search, gaming, Zune, etc. have all been losing rather than gaining money as a whole. Even Internet Explorer is being chipped away, albeit gradually. The simple truth of the matter is that the 90's are over: Microsoft is no longer made of money, and other companies are cheerfully assaulting it on all sides. This is not to say that Micrsoft am d00med or any such nonsense, but you can bet your rear end that they'll be more cautious about how they spend their money from now on.

And on a related note, I believe you're highly overestimating the degree to which Microsoft is devoted to the X-Box. Microsoft could conceivably throw enough resources behind it to guarantee a victory in the console wars. Likewise, the United States could throw enough resources into North Korea to overthrow that regime and unify the country under the South's leadership. But in both cases, the price certainly doesn't appear to be worth it to the folks who make the decisions.

 

 

 

Yes, they really can.  And it's good that they're facing competition.  It will make their products better.  And from what I've read, the Xbox 360 is considered by Microsoft to be one of their most important products, so I don't think I'm overestimating their dedication at all, especially now that they've proven that they are totally capable of stealing market share from Sony.




Seihyouken said:
Sony will definitely not make the same amount of money off the PS3 that they did with the PS2, but it's pretty foolish to think that they won't at least break even, especially if they delay the PS4 until 2013 or so.

Consider the following:

Sony made about $50,000,000 last quarter despite the huge amount of PS3s sold at Sony's loss.

The new 80GB and 160GB PS3s about to be released are almost definitely profitable. If true, that means that the only things that will be dragging Sony's profits down would be game/software development and upkeep as well as future price cuts.

Like I said above... that depends entirely on what you look at.

If you are talking the PS division as a whole, and the timeframe from PS3 launch to PS4 launch, then yes I believe they should make an overall profit (currently $3billion down though)

If you are seperating the PS3 from the rest, then I am pretty sure it will not manage it, as it must have lost at least 5 billion already, and is still losing money

 



it's good to be Nintendo right now...

They might not have the most advanced console ever, but they sure are making billions in profits...

I doubt Sony will go the same way with the PS4 as they did with the PS3.



obieslut said:
eh, who is this fellow anyway, probably correct but the ps3 is going to break even soon an with really good software sales i think they may be able to break even at worst

 

For sony to break even on the PS3.... the PS3 would have to make more money then the PS2 did.

Seems... unlikely.