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Forums - Sony Discussion - Sony to break-even with PS3 in 200

@Darc Requiem: Well, I'd be really surprised if they did a price cut in the 1st quarter.

Some people (not saying it's the case with you) don't realize that Sony is not in such a great financial position. Another $1 billion hit on the PS3 (roughly the cost of a $100 price cut over a single year) would be another ~10% hit to their cash reserve. I don't think that's something they want in these uncertain times.

One way or the other, things will become much clearer after their next financial report. I think Sony as a whole will be losing money over the quarter (like so many of Japan's exporters), let alone SCE. If that prediction is correct, I think we'll see a change of sentiment in this and other forums towards price cuts and other things.

 



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The year 200 came and went a long time ago. What is this guy talking about?



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NJ5 said:

@Darc Requiem: Well, I'd be really surprised if they did a price cut in the 1st quarter.

Some people (not saying it's the case with you) don't realize that Sony is not in such a great financial position. Another $1 billion hit on the PS3 (roughly the cost of a $100 price cut over a single year) would be another ~10% hit to their cash reserve. I don't think that's something they want in these uncertain times.

One way or the other, things will become much clearer after their next financial report. I think Sony as a whole will be losing money over the quarter (like so many of Japan's exporters), let alone SCE. If that prediction is correct, I think we'll see a change of sentiment in this and other forums towards price cuts and other things.

 

 

I know Sony is in a bad situation, however it has to be troubling for them to see the 360 gain traction in regions that are/were considered the Playstation brands strength. Of course with the currency situation and PS2 sales falling off. It's going to be harder and harder for them to mask the losses from the PS3. They are sort of in a damned if you do, damned if you don't situation at present.



Ithink PS3 DOES break even at the end of 2009, if they have no proce cuts, but....



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

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Good for Sony.... after that all they needto do is re-coup the billions of dollars (well Yen) that they have lost so far.



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Ah see, I thought 200 was the prequel to 300, and it somehow references Sony's ancient roots linked to the illuminati.



TWRoO said:
Good for Sony.... after that all they needto do is re-coup the billions of dollars (well Yen) that they have lost so far.

 

I hope they can.

Only Ninteno seems to be in the black so far, hopefully they they can learn a thing or two from them.

These haven't been updated in a while but the point is clear, Nintendo should be the profit teacher.

NJ5's link:

http://www.neogaf.com/forum/showthread.php?t=111003



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I think that it is very shorted sighted for Sony to wait until late 2009. There is the distinct possibility that MS could outsell the PS3 by 200,000-units a week over the next 50 weeks (until the next holiday shopping season starts).

Therefore, they very well could be down by an additional 10,000,000-units.

I think Sony needs to get that price down this very second, and not wait at all. Sometimes you have to lose a little money to make money later on.



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Comrade Tovya said:
I think that it is very shorted sighted for Sony to wait until late 2009. There is the distinct possibility that MS could outsell the PS3 by 200,000-units a week over the next 50 weeks (until the next holiday shopping season starts).

Therefore, they very well could be down by an additional 10,000,000-units.

I think Sony needs to get that price down this very second, and not wait at all. Sometimes you have to lose a little money to make money later on.

 

Funny, you and I have completely opposite notions of what short sighted means. I think it would be very short sighted of Sony to get caught up in worrying about comparisons to MS. I think it would be very short sighted of Sony to listened to their fanboys demands to fight back against MS, when their real enemy is their shrinking bank account.

 

 



astrosmash said:
Comrade Tovya said:
I think that it is very shorted sighted for Sony to wait until late 2009. There is the distinct possibility that MS could outsell the PS3 by 200,000-units a week over the next 50 weeks (until the next holiday shopping season starts).

Therefore, they very well could be down by an additional 10,000,000-units.

I think Sony needs to get that price down this very second, and not wait at all. Sometimes you have to lose a little money to make money later on.

 

Funny, you and I have completely opposite notions of what short sighted means. I think it would be very short sighted of Sony to get caught up in worrying about comparisons to MS. I think it would be very short sighted of Sony to listened to their fanboys demands to fight back against MS, when their real enemy is their shrinking bank account.

 

 

 

I don't care what fanboys think, so that has nothing to do with me.  I think that if they get buried too deeply, they may fall too far behind to catch up.  And that means the trend of dual release sales being significantly short sold on the PS3 will continue... and that is bad for the bottom line.  I'm not neccesarily saying they should lose money on the console.  What I am saying is that they need to sell it at the break even point, and make their money back on the software.

This notion that Sony has to make money on the console to be profitable is just wrong.  Software sales is what made the PS2 so successful, and not simply the market saturation of the console.

I think that selling at a break even margin is good for the PS3 market share (which has nothing to do with "fanboys" and has everything to do with profits) and good for the Blu-ray technology they've sunk so much money into.

The PS3 and Blu-ray format are both not exactly dominating the marketplace, and don't appear to be headed in that direction either.  And that is bad for Sony's bank account as you put it.



MarioKart:

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