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Forums - Microsoft - If the PS3 drops to $300 Microsoft should:

Rpruett on 18 March 2009
Darc Requiem said:
Soul_tech10 said:
Microsoft is in a worst position than sony, just add up the figures above and you will, see why.
Microsof is the only one with a negative total, -6mil.

Sony's game division SCE is losing money and the company is losing money as a whole. That puts Sony in the worst position. Microsoft's game divison is still in the red overall but has been posting profits over the last year. More importantly, Microsoft isn't in debt. Sony is. The strong Yen is putting an additional strain on Sony where as it's making things easier for Microsoft.

 

 

Microsoft's game division is still far in the red overall.  They didn't start posting profits till the 3rd year the 360 was on the market.  Like I said, we will see if Sony can post profits with it's 3rd year on the market. (I'm guessing they can).   Also the Microsoft numbers hide the costs of the RROD issue (IMHO), which is an ongoing cost that is going to hurt their bottom line.

 

The 360 only has a stronger umbrella over their head but it's still in the middle of a downpour.    As it boils down to the systems?  The 360 is in a worse position (Unless  Sony takes a third straight year of loss).



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nightsurge on 18 March 2009
Rpruett said:
Darc Requiem said:
Soul_tech10 said:
Microsoft is in a worst position than sony, just add up the figures above and you will, see why.
Microsof is the only one with a negative total, -6mil.

Sony's game division SCE is losing money and the company is losing money as a whole. That puts Sony in the worst position. Microsoft's game divison is still in the red overall but has been posting profits over the last year. More importantly, Microsoft isn't in debt. Sony is. The strong Yen is putting an additional strain on Sony where as it's making things easier for Microsoft.

 

 

Microsoft's game division is still far in the red overall.  They didn't start posting profits till the 3rd year the 360 was on the market.  Like I said, we will see if Sony can post profits with it's 3rd year on the market. (I'm guessing they can).   Also the Microsoft numbers hide the costs of the RROD issue (IMHO), which is an ongoing cost that is going to hurt their bottom line.

 

The 360 only has a stronger umbrella over their head but it's still in the middle of a downpour.    As it boils down to the systems?  The 360 is in a worse position (Unless  Sony takes a third straight year of loss).

You are wrong.  And yes, Sony will take a third straight year of loss.  ESPECIALLY if they do another price cut.

Oh and the RRoD cost was not "hidden".  It was factored into those charts, and is the reason why you see a billion+ loss spanning 2006-2007 added in (added to the other losses).  Sure it is ongoing still, but that's why they invested a $1billion up front.  The initial cost of repairs and such were not that high, and I'm betting they may not have even used up all that $1 billion yet.

Some rough calculations:
$20 per 360 shipping to/from repair center
$50 per 360 for repair/parts
------------------------------------
x10,000,000 (roughly 30% failure due to RRoD?)

= $700,000,000 or 700 million.  I have a feeling the repair cost (which usually is just new heatsinks and MAYBE a new motherboard) on average is around $50 with some being higher and some lower.

 



theprof00 on 18 March 2009

....start measuring the 360 for its coffin?



Darc Requiem on 18 March 2009

You beat me to it Nightsurge. A one billion write off loss for repairs, that was publically mentioned by Microsoft. was added to their balance sheet. That isn't what you would call hidden. Hidden would be the way Sony handled the DRE and overheating issues of the PS1 and the DRE issues of the PS2. Getting sued into admitting their is a problem can only occur when you are hiding the problem in the first place. Till this day, Sony says there was no problem.



Magnific0 on 18 March 2009

If the PS3 drops to $300 Microsoft should:

Run for cover.



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nightsurge on 18 March 2009
Magnific0 said:
If the PS3 drops to $300 Microsoft should:

Run for cover.

Because a $300 PS3 would mean that they stripped out too many parts and went too cheap, causing the PS3's to simultaneously combust everywhere?  Heck I'd run for cover too!

 



badgenome on 18 March 2009
theprof00 said:
....start measuring the 360 for its coffin?

I think they know the exact size by now. They probably send out thousands of coffins every day.



Magnific0 on 18 March 2009
nightsurge said:
Magnific0 said:
If the PS3 drops to $300 Microsoft should:

Run for cover.

Because a $300 PS3 would mean that they stripped out too many parts and went too cheap, causing the PS3's to simultaneously combust everywhere?  Heck I'd run for cover too!

 

very creative, but you could've simply said it would combust like the 360 :P

 



nightsurge on 18 March 2009
Magnific0 said:
nightsurge said:
Magnific0 said:
If the PS3 drops to $300 Microsoft should:

Run for cover.

Because a $300 PS3 would mean that they stripped out too many parts and went too cheap, causing the PS3's to simultaneously combust everywhere?  Heck I'd run for cover too!

 

very creative, but you could've simply said it would combust like the 360 :P

 

I knew that was bound to be your response

 



Magnific0 on 18 March 2009

^you implied it after all, it's on the top of you mind for some reason apparently :P