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Forums - Sales - David Reeves: Sony's priority is to make a profit....... right

BrainBoxLtd on 06 January 2009
alfredofroylan said:


"The most important thing for us as a company in the very short term is for us to start making money," he said.

Sony's "very short term" goal is making money? I assume they're focusing on that to better peruse their long term goal of losing money? It's takes money to lose money after all. =P



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Derixs on 06 January 2009

That makes better since. Thanks NJ5.



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alfredofroylan on 06 January 2009
TruckOSaurus said:
First time I heard about Vidzone. Is it like a Youtube you have to pay for?

It's a online service much like Youtube, it suposed to be free.

In 2009, VidZone’s service will be extended to the PlayStation 3 video game system in Europe, Australia and New Zealand, allowing users to watch music videos for on their PS3 or streamed to their PSP via Remote Play

 



Rainbird on 06 January 2009
Derixs said:
Dont all companys want to make money? Seriously everyone knows that a company is in business to make money, why would he have to state that in an interview?

Right now, Sony is in a situation where making a profit means a pricecut is looking to be a long way off, and since everyone wants pricecuts, Sony has to reaffirm this every once in a while it seems.



NJ5 on 06 January 2009
BrainBoxLtd said:
alfredofroylan said:


"The most important thing for us as a company in the very short term is for us to start making money," he said.

Sony's "very short term" goal is making money? I assume they're focusing on that to better peruse their long term goal of losing money? It's takes money to lose money after all. =P

I believe their long-term goal (in the context of this gen) is to cut prices as soon as that doesn't make them lose money. They have to do that since they're losing ground fast. The situation in Europe is especially bad as it wasn't expected.

 



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colonelstubbs on 06 January 2009

Of course they want to make a profit! Nice of them to remind us though



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freedquaker on 06 January 2009
SMcc1887 said:
Yea.
I dont want Sony to sell tons of PS3s for a loss right now, id rather they sold like 5M consoles for a profit in 2009 and keep delivering quality titles and services.

 

 If PS3 sells 5 million in 2009 (which is very unlikely), Third party support for PS3 will drastically decrease.



Playstation 5 vs XBox Series Market Share Estimates

Regional Analysis  (only MS and Sony Consoles)
Europe     => XB1 : 23-24 % vs PS4 : 76-77%
N. America => XB1 :  49-52% vs PS4 : 48-51%
Global     => XB1 :  32-34% vs PS4 : 66-68%

Sales Estimations for 8th Generation Consoles

Next Gen Consoles Impressions and Estimates

BrainBoxLtd on 06 January 2009
NJ5 said:
BrainBoxLtd said:
alfredofroylan said:


"The most important thing for us as a company in the very short term is for us to start making money," he said.

Sony's "very short term" goal is making money? I assume they're focusing on that to better peruse their long term goal of losing money? It's takes money to lose money after all. =P

I believe their long-term goal (in the context of this gen) is to cut prices as soon as that doesn't make them lose money. They have to do that since they're losing ground fast.

 

That really just seems so unhealthy considering where they're at right now. How far would a price drop really go anyways? I'm sure it'd spur sales, but it would be enough to offset the loss of how ever much they cut off the price? And if a pricedrop means selling at a (greater) loss, would it really be worth it?

 



NJ5 on 06 January 2009
BrainBoxLtd said:
NJ5 said:
BrainBoxLtd said:
alfredofroylan said:


"The most important thing for us as a company in the very short term is for us to start making money," he said.

Sony's "very short term" goal is making money? I assume they're focusing on that to better peruse their long term goal of losing money? It's takes money to lose money after all. =P

I believe their long-term goal (in the context of this gen) is to cut prices as soon as that doesn't make them lose money. They have to do that since they're losing ground fast.

 

That really just seems so unhealthy considering where they're at right now. How far would a price drop really go anyways? I'm sure it'd spur sales, but it would be enough to offset the loss of how ever much they cut off the price? And if a pricedrop means selling at a (greater) loss, would it really be worth it?

 

That's not what I meant. I said "as soon as that doesn't make them lose money". By "them" I mean SCE as a whole.

At some point, PS3 hardware production costs will be low enough for them to cut the price. Unfortunately for Sony, there's a number of factors conspiring to delay this:

- Exchange rates (could improve again).
- Quickly declining PS2 sales, and declining PSP sales.
- The competition stealing sales from them (a Catch-22 here).

That's why I think a price cut may come late in 2009, or even in 2010 only. It depends on how these three things go.

 



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BrainBoxLtd on 06 January 2009
NJ5 said:

That's not what I meant. I said "as soon as that doesn't make them lose money". By "them" I mean SCE as a whole.

At some point, PS3 hardware production costs will be low enough for them to cut the price. Unfortunately for Sony, there's a number of factors conspiring to delay this:

- Exchange rates (could improve again).
- Quickly declining PS2 sales, and declining PSP sales.
- The competition stealing sales from them (a Catch-22 here).

That's why I think a price cut may come late in 2009, or even in 2010 only. It depends on how these three things go.

 

 

I know what you meant. But an executive from Sony saying their VERY short term goal is making money makes me think they're just waiting for the slightest glimmer of hope to slash the price and throw a lot of money behind the PS3.

David Reeves leads me to beleive they want to run a marathon the very moment they bandage a pair of broken legs. =P