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Forums - Sales - The official "PS3 loosing Billions for Sony"

this was a requested thread, and was approved by a mod :)

post news, discuss this event, talk about what can be done etc

 

 



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Hmmmm This will end bad and good...Bad from well the obvious reason and good so we don't have to see 3 threads per day on this...



Former something....

All I have to say is Sony will get through it, it is a bad time for them of course, but it's not as bad as some people make it.. and I don't believe SCE/Playstation will be cut.



i hope they CAN turn around and start to gain money, to be honest



http://gamer.blorge.com/2008/08/22/wii-to-be-only-profitable-console-ps3-xbox-360-losing-billions/



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Unfortunately, the topic is incorrect by virtue of using the plural. The PS3 is only losing one billion (plus a little change). It is not losing "billions."

Now, if you'll excuse me, I have laundry to attend to; it should finish up the spin cycle soon.



Complexity is not depth. Machismo is not maturity. Obsession is not dedication. Tedium is not challenge. Support gaming: support the Wii.

Be the ultimate ninja! Play Billy Vs. SNAKEMAN today! Poisson Village welcomes new players.

What do I hate about modern gaming? I hate tedium replacing challenge, complexity replacing depth, and domination replacing entertainment. I hate the outsourcing of mechanics to physics textbooks, art direction to photocopiers, and story to cheap Hollywood screenwriters. I hate the confusion of obsession with dedication, style with substance, new with gimmicky, old with obsolete, new with evolutionary, and old with time-tested.
There is much to hate about modern gaming. That is why I support the Wii.

This is very bad for Sony cause unlike Microsoft, they don't have 50 billion dollars of cash in the bank and make 14 billion in profits every year. They are a normal company that has slim profit margins.



This is the definitive post analyzing PS3's losses so far (by TWRoO). The conclusion is a $5+ billion loss so far.

http://vgchartz.com/forum/post.php?id=1630582

Someone already linked to the table showing the game division profits/loss for Sony/MS and Nintendo since 1998.

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

The last quarter is missing, which has Sony losing a further $400 million.

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As you can see, since the PS3 release (the row marked 2007) Sony's game division has lost a staggering amount of money.

-1,969 million - 1,265 million + 51 million (then minus ~$400 million for July-Sept... I don't know the exact conversion but it is very near $400mil)


That comes to -$3,583.
That's a loss of over 3.5 billion dollars.

However that obviously is not the sum loss of the PS3, because over those 2.5 years the PS2 and PSP have been making profits, especially the PS2 in that first year. We can see in FY 2003 how profitable the PS2 can be (almost $1billion in profit, although PS1 will be a small part of that as it was still selling slowly) Since then I think there has been a price cut, but then manufacturing will have come down too. Software has been slowing down recently, but for the FY2007 where they lost $2billion the PS2 was still selling huge amounts of software (after all the PS3 wasn't out till half way through that year, and even then the PS3 didn't give the PS2 much of a hit for it's SW numbers)

The PSP will have been less profitable during the 2.5 years, mostly due to low software sales, but it was still in the black.

So what you have to do to work out how muchthe PS3 has lost, is take away all the profits that the PS2 and PSP made in that timeframe.... there is no way to know the exact figures for that, but I would guess the two of them made over $2 billion when they have 2.5 years to do it, and as a minimum they will have made $1.5 billion.

Thus the PS3has certainly lost in excess of $5 billion (minimum for that 2.5 year period)
and more than likely it will be nearing $6 billion.

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Then there are some other unknown factors to add in, for instance in the FY 2006 Sony's game division only made $75 million for the whole year, now it is possible that the PSP at that time didn't make a profit for the year, given that the HW was probably still sold at a small loss, and the low SW sales might have only brought it back to even. but the PS2 will have made masses of money, so arguably the PS3 waslosing them money even back then, perhaps a further $500 million to add to the kitty.

Furthermore, we don't yet know what the last 3 months have done for Sony, but given the horrid way the economy has changed for Japanese electronics, I highly doubt Sony made a profit even for the Christmas period.... but we can stil be sure even now that the PS2 + PSP will have at least made a small profit as Sony ave said so themselves. So any loss that the gaming division reports for that period can be added to the total loss the PS3 made.

To be honest I would be suprised if, when looking at the PS3 alone, Sony had managed less than a $7 billion loss.

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And about the argument of whether the PS3 has, or will lose all the money the game division ever made, I think it's possible it already has, the table above doesn't have any figures for the 2 years before when the PS1 was selling, and oddly, the year the PS1 launched Sony as a whole company posted a loss, which I am not certain, but could hae been partially caused by the R&D on the PS1 project, so for all we know when you add previous years, the game division (which wasn't set up till 1998, which is why there are no figures in that table for it) may actually have lost all the money it gained.



My Mario Kart Wii friend code: 2707-1866-0957

microsoft lost 4 billion on original xbox and RROD fixes costs over 1 billion dollars. Sony spend all its money it made on PS2 working on PS3. PSP is the only small profit for Sony so far if you DON'T count. all cameras, TVs, Walkmans, blu ray players...

 

PS3 lose billions for Sony

PS2 Made billions for Sony

PS1 made billions for Sony

PSP made thousands for Sony

 



the PS3 is loosing billions for Sony???? you meaning losing, yes? your "official" thread has a typo already, great start for a thread that is created for the sole purpose of flaming.... this is stoopid.