Sheesh, its getting pretty silly at the moment, how about some nice counter arguments to cool the doomed brigade.

PS3 software royalties.

• 65,140,806 sold so far 2008
• 29,136,199 sold in 2007
• 2,237,669 sold in 2006

Note the massive increase from 2007-2008? Assuming all software sold was third party @ $6 a pop the PS3 would have earnt:

• $390,844,836 so far 2008
• $174,817,194 in 2007
• $13,426,014 in 2006

The PS3 will easily add another 12 million sold in 2008 which should bring the end of year total to ~$460,000,000.

For next year, as the platform is still maturing it should sell at least a third more software than it did last year so conservatively the PS3 platform will earn sony almost 2/3rds of a Billion dollars. Obviously if I actually put some effort in and distinguished between 1st/3rd parties the figure would probably total more than a Billion dollars.

 Recession/Currency crisis/Cost cutting

• Commondity prices plummeting: Gas, metal, semi-conductor, plastic prices all dropping.
• 45nm Cell chips, and likely a renegotiation of contract prices which means cheaper heatsinks, power supplies, and chip costs.
• The terrible burden of the Yens increased buying power. Actually its only really a burden if they convert profits back into the Yen as the PS3 itself is manufactured abroad. If people expect the PS3 to not make a profit, then obviously they can't really be effected by the apreciation of the Yen. If they spend everything they earn, they obviously its not really going to effect anything beyond their operations in Japan which become relatively more expensive.

I can't stop crying, anyone got a tissue?

Squilliam FTW :)

Dude your threads are always a cup of fresh sunshine. :P

What about the losses Sony has incurred on PS3 hardware up to now this generation? I would like to see someone provide data on how much is lost or made per PS3 console sold.

So would everyone else, those numbers are never ever released by the companies.  The only calculations we get are speculations and the only statements we get from the corporations are that "We are now selling the system itself for a profit."

Can anyone tell me how much Nintendo makes per Wii?

See? This is what I'm talking about. Sure, there are a few open spots left to debate about whether those numbers are really high enough to be good news vs other costs that PS3 has incurred, but it's still at least a plausible argument.

Someone once made a thread claiming it was 6 dollars for each wii sold wordwide.

The profit per Wii sold would of increased in two years due to Wii staying unchanged in sales price and the cost of production of Wii consoles falls annually. The exact profit per Wii sold I would guess would be about $20 per Wii sold.

revenue =/= profit

SCE is losing money, even including profit from PS2 and PSP

Edit: not that I'm trying to argue the PS3 is doomed, as soon as the yen returns to its typical value then SCE should start seeing profits

Who knows? Anyway they can still lose money even if they more than break even on hardware sales. Much of the losses incurred recently are likely to be from PSN and their massive 1st party software development overhead. Luckily much of that software is going to come to fruition next year.

Guerilla Games: 130 staff

Naughty Dog: 85 staff

Polyphony Digital: 200+?

SCE Liverpool: 100+

Just those 4 studios total ~550 employees. The cost per chair at a development studio is roughly 100k a year, so therefore between those 4 developers it would cost them more than $55,000,000 if you add building expenses etc to the mix per year. They have many more studios than that even, see?