By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sales - What is Sony's net loss with their PS3 investment?

here is what I wrote in another thread:

Here are the results of Sonys Gaming division for the last couple of years:

  • FY09: $600 million loss
  • FY08: $1300 million loss
  • FY07: $2400 million loss
  • FY06: $90 million profit

In the last 4 years Sony reported a $4.21 billion loss.

We do know that the PS2 was profitable for all the years I listed. The PSP probably was at break even-point in 06 and profitable since then.

So the losses made happened because of the PS3. The losses made with the PS3 are really insane when you think about it. We have $4.21 billion reported, but that is not all. You have to add the profits made with the PSP and the PS2 for 4 years. In the years 03 - 05 Sony reported a combined profit of $2.3 billion USD.

So a total loss of $6 billion just for the PS3 is likely. Think about 6 billion USD for ONE single product. That is huge.



Imagine not having GamePass on your console...

Around the Network


Who knows



novasonic said:
Maybe the reason no one can figure out how much Sony's lost on the PS3 is that no number that big exists yet. dun dunnn!

Lol

 



Biggest Pikmin Fan on VGChartz I was chosen by default due to voting irregularities

Super Smash Brawl Code 1762-4158-5677 Send me a message if you want to receive a beat down

 

RPG said:
That is the biggie, PS3 has come at the back of 3 successful consoles. PS3 is said to have eaten into every penny made by Playstation and will continue to do so but before all is said and done, PS3 and PSP will put the Playstation brand back into profit.

I agree but the question is when and how much profit they will make in the end.



MikeB predicts that the PS3 will sell about 140 million units by the end of 2016 and triple the amount of 360s in the long run.

Only Sony knows the exact amount of money invested into the PS3. Losses and investments are not the same thing. People stop spreading lies about the PS3. Long-term Investments generate future returns and profits. It is like investing money into a house or superannuation funds. They are not considered losses they are long-term investments that in the long run generate high returns.



Around the Network
PS3beats360 said:
Only Sony knows the exact amount of money invested into the PS3. Losses and investments are not the same thing. People stop spreading lies about the PS3. Long-term Investments generate future returns and profits. It is like investing money into a house or superannuation funds. They are not considered losses they are long-term investments that in the long run generate high returns.

You are kidding right?  How is that the same thing?  If you pay £1m for a house and you know it is going to be worth £0 at the end of the 25 year mortgage period and you rent out the house but the rent does not cover the mortgage interest let alone the capital you know from day one you ain't going to see a return on your investment.  You don't need to wait till year 25 to find that out.

 It's the same with PS3.  They are not going to be able to sell the PS3 brand for anything when this gen ends.  They are getting some money in from sales but it is not anywhere near enough to meet the on going costs (hence the continuing losses) but most of all even where they are finally into net profit there is no way it is going to be enough to make up for the billions lost.



Biggest Pikmin Fan on VGChartz I was chosen by default due to voting irregularities

Super Smash Brawl Code 1762-4158-5677 Send me a message if you want to receive a beat down

 

saicho said:
RPG said:
That is the biggie, PS3 has come at the back of 3 successful consoles. PS3 is said to have eaten into every penny made by Playstation and will continue to do so but before all is said and done, PS3 and PSP will put the Playstation brand back into profit.

I agree but the question is when and how much profit they will make in the end.

Technicaly the brand still has a profitable balance sheet overall.  Since the divisions inception it has a balance of $1.66 billion.

The problem is that prior to the release of the PS3 the brand had a balance of $5.34 billion.  It will never regain those losses this generation alone and Sony is projecting more losses this fiscal year as well.  So it may be a few more years before a profit is generated in a single fiscal year and indeed they may end up reducing their $1.6 billion overal balance even further before it happens.

For the brand to return to profitability on a consistant basis will require a new corporate direction which we'll likely see next generation but not until then.



The rEVOLution is not being televised

PS3beats360 said:
Only Sony knows the exact amount of money invested into the PS3. Losses and investments are not the same thing. People stop spreading lies about the PS3. Long-term Investments generate future returns and profits. It is like investing money into a house or superannuation funds. They are not considered losses they are long-term investments that in the long run generate high returns.

 

Are you aware your posts are so utterly ridicolous you sound like you were a joke account made by an xbox supporter to denigrate ps3 fans?





Current-gen game collection uploaded on the profile, full of win and good games; also most of my PC games. Lucasfilm Games/LucasArts 1982-2008 (Requiescat In Pace).

4.3 billion for the division, but that's including PS2/PSP profits to negate the overall loss, realistically if the PS3 were in a vacuum it would be 5 BILLION easily.



RAZurrection said:
4.3 billion for the division, but that's including PS2/PSP profits to negate the overall loss, realistically if the PS3 were in a vacuum it would be 5 BILLION easily.

Probably closer to $6 billion.

 

It would but hard to imagine that PS2 hardware/software, PSP hardware/software, PS3 software and all accessories only account for $700 million in profit over the past 2.5 years.

 



The rEVOLution is not being televised