Someone started a thread with the topic: 360 can NOT outsell the PS3 and at the same time make money.

Clarify. I use the quarters of the normal year and not the fiscal year since MS and Sony uses different. Q4 2008 is Okt- Nov- Dec and so on. Sony’s division is Game division and MS division is Entertainment and Devices Division.

Q3 2008

Sony: 2582 millions and only 379 millions losses -> sold 1,987,435 units

MS: 1814 million and 178 millions in profit -> sold 1,936,095 units

Q4 2008

Sony: 4328 million and 4 millions in profit -> sold 4,424,511 units

MS: 3180 million and 151 millions in profit - > sold 6,678,265 units

What conclusions can we draw?

-          The PS3 clearly still made losses in the last quarter of 2008 since PS2 + PSP + PS3 + Games = only 4 millions in profit. Since we know that 3 parts of the equation sells at profit a ps3 selling at a loss creates the low profit

-          That the price cut indeed killed the margins that 360 had up until the cut. But also that the division as a whole still created a profit far bigger. Since the division is not only 360 and 360 games it is uncertain how much of the profit is 360 sales but we can be pretty sure that it wasn’t sold at a loss if you take the margin from all SKUs together.

So 360 did not only outsell the PS3 ------- IT made money

Over to 2009

The Q1 numbers of 2009 for MS:

1570 million 31 million loss

The Q2 numbers of 2009 for Sony:

Unknown

So if Sony doesn’t present a greater profit we can be sure that PS3 was losing money in Q1 2009 also.

Sum up
- Even at a lower price 360 has better margins then PS3
- A 100 dollar price cut would with 100% certainty put PS3 in its third year without profit from hardware sales
- Without a price cut the 360 will continue to outsell the PS3 as it did Q1 and most likely will do Q2
- With the margins in mind we can see that MS has at least an equal opportunity cut price as Sony has

So – The Ps3 can NOT outsell the 360 and make money at the same time – MS managed to do that Q4 2008.

Some people would say that PS3 is selling well at its price point. That half the price of 360 should easily make double the sales as PS3 or otherwise its a failure.

-       Is it a failure to sell more and earn more, and actually make money?

-       Can the present and the past be compared? Aka what 306 sold and what ps3 is sellin?

Other questions

-       Price Cut is needed. But when will it happen? How likely is MS to return fire?

-   Will PS3 sink below 100k a week before the end of Q2?

All ready got it covered with this thread son.
http://www.vgchartz.com/forum/thread.php?id=71998&page=1

Good point, thanks for your analysis...

Already a thread about this.

Or =/= And. This renders it hard for me to believe your "analysis".

Interesting thread.

the big differences is sony doesn't have revenue stream from services like xboxlive, home is supposed to be some of revenue stream, but now almost 2 years, home is always in alpha-beta stage. i think by the end of the year
people will forget about home, unless sony hyping another new features.

Sony can't outsell the PS3.  You're right.  Except maybe with PSP, so I guess they can.

Hey, putting yourself many billions in the hole can get you in a good position, eventually.  We'll see if Sony can use that technique going forward as well as Microsoft has since XBox originated.

Unless the show some developers some ROI models...home will be in beta for a LONG time.

That strategy only works if other parts of your business make up the losses, Sony doesn't have that luxury like Microsoft always has.