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Forums - Sony - to answer question if sony lost more in ps3 then ps2 ANSWER INSIDE

PullusPardus on 14 May 2009

its really not that big of a problem for sony, but if its Nintendo , since they only make games , it would be a disaster,
to sony its like they have to focus on earning on one side to make the other side better.



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CrashMan on 14 May 2009
forevercloud3000 said:
DarkNight_DS said:
forevercloud3000 said:
Last Time I checked, Sony spends the console sales of previous generations......in every new generation.
PS2 spent PS1's money
PS3 is spending PS2's money

most of this is made back when developement costs drop, accessories, and game sales, especially 1st party game sales.

 

That would have sort of worked if they had the huge console sales that their 2 previous systems had.  The  PS3 will never make the money back that it lost for Sony.  Even the money made by the PS1 and PS2 was very small when compared to Nintendo's profits during it's same time period riding off the N64 and Gamecube.  Nintendo kept making money, Sony would spend it's riches each time. 

The question that Sony should have been asking after the PS1-PS2 intro was: Why do we need to keep paying such huge amounts of R&D each time we want to make a console.  Why don't we use readily available parts and make something that's profitable right out of the gate?

Sony could have leveraged it's PS2 experience and reused most of the technology they already developed.  Everything they wanted to do with the cell could have been done with a slightly revised PS2.

well I geuss what data is really needed in order to know whats going on is how much money is SONY sitting on, specifically for the PS3. They have been spending spending spending this gen, very little gaining. Maybe Sony has more money then we thought. They are not showing any signs of failing anytime soon(as much as the media would like you to think so). There is definitely something there that we are missing for them to be able to spend this amount of money with no worries.

THey seem to be following the thought process of "you have to spend money, to make money". Sony seems to be the company that looks to the future more so then the present.

 

 

 That is wishful thinking, but sony is not some singular entity with a single mind that makes all of the decisions.  They have shareholders, and the shareholders won't stand for a division ammassing such a huge deficit.  If SCE doesn't start pulling a profit after the next console launch, you better believe it will be on the chopping block. 

The shareholders will not keep eating losses simply because you like their console.



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Pristine20 on 14 May 2009
jellyfishprince said:
forevercloud3000 said:
Last Time I checked, Sony spends the console sales of previous generations......in every new generation.
PS2 spent PS1's money
PS3 is spending PS2's money

most of this is made back when developement costs drop, accessories, and game sales, especially 1st party game sales.

 

what are you even i dont even... ps2 spent barely a fraction of the ps1's money and made it all back in the 2nd year and then flourished. the ps3 spent basically all of the ps2's money and then all of the ps1's and psp's profit and has yet to turn a profit. i dont see how that is a trend.

 

 Sony is in a terrible situation but let's be accurate. Ps3 has not spent the ps1's profits.



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DarkNight_DS on 14 May 2009
forevercloud3000 said:
DarkNight_DS said:
forevercloud3000 said:
Last Time I checked, Sony spends the console sales of previous generations......in every new generation.
PS2 spent PS1's money
PS3 is spending PS2's money

most of this is made back when developement costs drop, accessories, and game sales, especially 1st party game sales.

 

That would have sort of worked if they had the huge console sales that their 2 previous systems had.  The  PS3 will never make the money back that it lost for Sony.  Even the money made by the PS1 and PS2 was very small when compared to Nintendo's profits during it's same time period riding off the N64 and Gamecube.  Nintendo kept making money, Sony would spend it's riches each time. 

The question that Sony should have been asking after the PS1-PS2 intro was: Why do we need to keep paying such huge amounts of R&D each time we want to make a console.  Why don't we use readily available parts and make something that's profitable right out of the gate?

Sony could have leveraged it's PS2 experience and reused most of the technology they already developed.  Everything they wanted to do with the cell could have been done with a slightly revised PS2.

well I geuss what data is really needed in order to know whats going on is how much money is SONY sitting on, specifically for the PS3. They have been spending spending spending this gen, very little gaining. Maybe Sony has more money then we thought. They are not showing any signs of failing anytime soon(as much as the media would like you to think so). There is definitely something there that we are missing for them to be able to spend this amount of money with no worries.

THey seem to be following the thought process of "you have to spend money, to make money". Sony seems to be the company that looks to the future more so then the present.

 

 

I could have swore that there have been reports of Sony borrowing money from the banks.  You don't borrow money unless you need to.  Can someone dig up how much money Sony has in loans from the bank?



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jellyfishprince on 14 May 2009
Pristine20 said:
jellyfishprince said:
forevercloud3000 said:
Last Time I checked, Sony spends the console sales of previous generations......in every new generation.
PS2 spent PS1's money
PS3 is spending PS2's money

most of this is made back when developement costs drop, accessories, and game sales, especially 1st party game sales.

 

what are you even i dont even... ps2 spent barely a fraction of the ps1's money and made it all back in the 2nd year and then flourished. the ps3 spent basically all of the ps2's money and then all of the ps1's and psp's profit and has yet to turn a profit. i dont see how that is a trend.

 

 Sony is in a terrible situation but let's be accurate. Ps3 has not spent the ps1's profits.

well then it was spent on whatever reserve of money sonny had. it could have came from the ps1 or wahtever. the point is the ps3 has used up more money than the ps2 and psp has given them so it had to come from somewhere else. it doesn tmatter if it is from the ps1 or their bravo tvs.

 




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forevercloud3000 on 14 May 2009

What I am saying is, losing a buttload of money is nothing new to SONY. They do it every generation, each time out doing themselves. Sony has a few things all pooling from there pockets this gen.
THe PS3, PSP, and BluRay. Of course they have spent maybe the most this time then ever before. Yet every time what has happened? Sony comes out on top with there products and they make profits, thats 2 gens in a row. Now unless you can prove that Sony's plan isn't working, or that they don't have one, there is no proof that they won't do the same this time around.



      

      

      

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NJ5 on 14 May 2009
DarkNight_DS said:

 

I could have swore that there have been reports of Sony borrowing money from the banks.  You don't borrow money unless you need to.  Can someone dig up how much money Sony has in loans from the bank?

It's all here:

http://www.google.com/finance?fstype=bi&q=NYSE:SNE

Long term debt: 685 billion yen ($7.18 billion)

Total debt: 1.2 trillion yen ($12.6 billion)

As of the end of 2008.

 



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BladeOfGod on 14 May 2009

^PSP is profitable



TWRoO on 14 May 2009

For those interested, I made some rough estimations of what each of the 4 PS consoles has made throughout it's life.
In this thread:
http://www.vgchartz.com/forum/thread.php?id=72293&page=1

PS1 - made in excess of $5 billion profit.

PS2 - has made about $3 billion (and counting, albeit slowly counting now)

PSP - was in the red, but I am certain it has at least broken even, and has probably made a few hundred million (and counting... probably counting faster than PS2 now as well)

PS3 - has lost in excess of $6 billion.



jellyfishprince on 14 May 2009
forevercloud3000 said:
What I am saying is, losing a buttload of money is nothing new to SONY. They do it every generation, each time out doing themselves. Sony has a few things all pooling from there pockets this gen.
THe PS3, PSP, and BluRay. Of course they have spent maybe the most this time then ever before. Yet every time what has happened? Sony comes out on top with there products and they make profits, thats 2 gens in a row. Now unless you can prove that Sony's plan isn't working, or that they don't have one, there is no proof that they won't do the same this time around.

uhhh.. i would say 3 years of loss that the ps3 has given them which totals more than they have pretty much made in their entire lifespan in the gaming industry (assuming the PSone made at least 150 billion yen) meaning everything they have worked for in the psone, ps2 and psp + software was wasted also accounting to the fact that they have projeted further loss in the future means there is no way their "plan" could work.

 




prediction: wii to sell 150million console by end of 2010