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Forums - Sony - Sony on the brink of corporate upheaval, drastic changes

I've already got one bet in my sig! There's no room for any more! lol

I'll try and squeeze it in.

Edit: Oh.  You meant if we lose.  Okay.

 

How long should we leave it there?  A month?



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makingmusic476 said:

Guys, Sony won't be leaving the gaming industry. >_<

At worst, Sony just won't drop the price of the ps3. With the drop to 65nm RSX at the beginning of the holidays, and the drop to 45nm Cell at the beginning of 2009, ps3 hardware costs are getting lower than ever. As shown through the holidays, the ps3's sales are drying up at the $399 price point, and probably won't be very high at the beginning of the year. Low sales + lower hardware costs results in much less lost on ps3 hardware overall.

This combined with more big 1st party releases next year than ever before (Killzone 2, White Knight Chronicles, and InFamous all in the first five months), plus the new revenue source found in Home (whereas before it was just a money sink) should lead to Sony losing much less in 2009 than previous quarters, if not making a profit.

When they begin breaking even on every ps3 sold near the end of the year, they'll be doing fine. They may be far in third place, but they'll be profitable.

And that's assuming things are at their worst.

This is a worst case scenario? "They won't drop the price on the PS3"?



makingmusic476 said:
I've already got one bet in my sig! There's no room for any more! lol

I'll try and squeeze it in.

 

that busy huh...  

 

im just asking for a line, is there a cap on sig size, i know it had been talked about for awhile about a year ago then the talk died off  (someone was banned once for too long a sig)  .... 

*edit just looked at your sign up date your even longer here then me by a month in change... though i was a bit of a voyeur on the site for about 4 months. it seems like these day all these new members are here now and dont remember the crazy old posters 



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makingmusic476 said:

I've already got one bet in my sig! There's no room for any more! lol

I'll try and squeeze it in.

Edit: Oh.  You meant if we lose.  Okay.

 

How long should we leave it there?  A month?

 

sure, i dont know what the standard time is, ill probably forget its down there and leave it there longer if i lose 



come play minecraft @  mcg.hansrotech.com

minecraft name: hansrotec

XBL name: Goddog

Khuutra said:
makingmusic476 said:

Guys, Sony won't be leaving the gaming industry. >_<

At worst, Sony just won't drop the price of the ps3. With the drop to 65nm RSX at the beginning of the holidays, and the drop to 45nm Cell at the beginning of 2009, ps3 hardware costs are getting lower than ever. As shown through the holidays, the ps3's sales are drying up at the $399 price point, and probably won't be very high at the beginning of the year. Low sales + lower hardware costs results in much less lost on ps3 hardware overall.

This combined with more big 1st party releases next year than ever before (Killzone 2, White Knight Chronicles, and InFamous all in the first five months), plus the new revenue source found in Home (whereas before it was just a money sink) should lead to Sony losing much less in 2009 than previous quarters, if not making a profit.

When they begin breaking even on every ps3 sold near the end of the year, they'll be doing fine. They may be far in third place, but they'll be profitable.

And that's assuming things are at their worst.

This is a worst case scenario? "They won't drop the price on the PS3"?

 

For SCE, I believe so.  They managed to pull a profit last holiday quarter, and the same is likely this holiday quarter, given that they're losing less on the ps3.

The ps3's sales are dying at $399, and it's likely that'll continue into 2009.  As a result, they'll be losing even less on the ps3 than they were before, especially with further reductions in the cost of hardware.  After that, it's up to software sales, particularly the first party stuff (of which they'll be releasing quite a bit early next year), to pick up the slack.

Aside from that they'll probably weed out some of their weaker studios, like the team working on the NBA series.

These things should be enough to offset the effect of increasing/decreasing currencies, plus most of their software is developed and manufactured nowhere near Japan.

Edit:

Really, outside of hardware (and most ps3s are made in China now anyway), most of SCE's workforce is housed outside of Japan.  They have far more development studios in North America and Europe than in Japan (though R&D on new hardware takes place mostly in Japan - but how much R&D would they be doing right now?).

As a result, the currency issues should effect SCE far less than other parts of Sony, as a larger portion of the division's expenses (salaries and the like) aren't being paid for in Yen.



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makingmusic476 said:

For SCE, I believe so.  They managed to pull a profit last holiday quarter, and the same is likely this holiday quarter, given that they're losing less on the ps3.

The ps3's sales are dying at $399, and it's likely that'll continue into 2009.  As a result, they'll be losing even less on the ps3 than they were before, especially with further reductions in the cost of hardware.  After that, it's up to software sales, particularly the first party stuff (of which they'll be releasing quite a bit early next year), to pick up the slack.

Aside from that they'll probably weed out some of their weaker studios, like the team working on the NBA series.

These thigns should be enough to offset the effect of increasing/decreasing currencies, plus most of their software is developed and manufactured nowhere near Japan.

Well, we can hope that a bunch of pissed off stockholders ends up agreeing with you.



goddog said:
outlawauron said:
goddog said:
makingmusic476 said:
numonex said:
PS3 is Sony's 8 to 10 billion loss burden. Sony has fallen since PS3 was launched.
Sony fans go on about XBox and XBox 360 costing MS $5 billion dollars. PS3 cost Sony double that amount. Blu-Ray has been a high risk investment from Sony. All the eggs have been put into one basket.
Sony is struggling to stay alive in the video gaming industry. Sony has to remember it has limited financial resources. MS on the other hand have virtually unlimited financial resources. Going head to head, blow for blow, price cut after price cut with MS could be the downfall of Sony.

 

Your trolling is getting VERY tiring.  Now you're just making up numbers!  Sony never lost anywhere close to 8-10 billion on the ps3.  They only lost a bit more than 3 billion.

From Neogaf:

 

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

 

I call BS on the numbers mainly because we are not in Q1 09 for sony yet nor do we have those numbers their years end in march so Q1 09 wouldnt be for a bit 

 

I was wondering about that too. How did they get those numbers.

looking over these again brings me to another question, where did they hide cell development, unless the ps2 was far more profitable then we are lead to believe cell development spending which was about 3 bill should start showing up around FY2003

 

 

*also MS needs to sperate out its units so we know what they are losing money on I mean windows mobile is in there as is windows embed, windows auto, windows mac, media room (internet protocals and shit), zune (a gigantic sinkhole for money) all pc games revenue (that makes some sence) mice and that jazz, and consumer R&D think surfaces which is another money pit

 

Supposedly the costs of the Cell were hidden within the other divisions by Kutaragi. Remember, the Cell was his baby and it was planned to be put in just about every CE product Sony was making. Thus some of the R&D cost promised for the Cellphone and TV divisions was funneled into the Cell, since those products would eventually get the processor.

This is part of the reason why Kutaragi got the axe.

 





PS3 was sold initially in its first year for $300 loss per console sold.

1st year: 7 million PS3's were sold in its first year = $2.1 billion in losses on PS3 just on sales.

2nd year: 11 million PS3's sold in its second year at $50 to $100 loss per console = $500 million to $1.1 billion in losses on PS3 sales.



numonex said:

PS3 was sold initially in its first year for $300 loss per console sold.

According to VGC: 7 million PS3's were sold in its first year = $2.1 billion in losses on PS3 just on sales.

Ok, now. We have no hard data because you are just pulling that info out of nowhere.

 

And what I find most surprising is that Sony almost has double the workforce than Microsoft. That's what surprises me.



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