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Forums - Sales - Why the PS3 will not last long, let alone 10 years.

nightsurge on 29 May 2009
Max King of the Wild said:
yeah! lets kill the ps3 right when it starts bringing money so that way we'll have no chance in making the money back! AWESOME! (BTW Sonys president or what have you said they are only losing 10% on each ps3. therefor there must be something else sucking up money... hm lets logically think about this what has been in the news the last year and hurts businesses... the economy? no that couldnt possibly be the reason)

Probably a combination of:

Currency conversions

Economy

Sony Electronics have decreased in perceived value due to economy (same TV as others for $400 more = no Sony purchase)

PS3 selling at a loss

R&D



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Max King of the Wild on 29 May 2009

lately Sonys burden has been the weak economy. to give you a general idea on why its been so bad for sony.

December 91.2491 JPY
January 90.4212 JPY
February 92.5422 JPY
March 97.8357 JPY  
April 98.8881 JPY
May 96.7357 JPY

the average for Jan - march was 93.60. Already this quarter average is 97.81. When talking about products worth hundreds of dollars with thousands being sold that turns into millions of dollars. And the Yen still isn't normal yet. Only 3 months of last year was it under 100... can you guess which ones they were? Q4. Ya know... the quarter they sold the most of all their products. Already this year 5 months have been under 100. (average of last year before Q4 was 106)



Max King of the Wild on 29 May 2009
nightsurge said:
Max King of the Wild said:
yeah! lets kill the ps3 right when it starts bringing money so that way we'll have no chance in making the money back! AWESOME! (BTW Sonys president or what have you said they are only losing 10% on each ps3. therefor there must be something else sucking up money... hm lets logically think about this what has been in the news the last year and hurts businesses... the economy? no that couldnt possibly be the reason)

Probably a combination of:

Currency conversions

Economy

Sony Electronics have decreased in perceived value due to economy (same TV as others for $400 more = no Sony purchase)

PS3 selling at a loss

R&D


I agree but only one of those falls on the ps3.

Beoulve on 29 May 2009
chenguo4 said:
I just saw a wall of text... But let me respond.

No.

this

 

lol



Max King of the Wild on 29 May 2009

Im looking back at exchange rates from 06 anthey were around 117 per month... man its not hard to see why sony is suffering. it isnt hard to see why the ps3 pricing wasnt to worrying for sony when it first came out either. The exchange rates dropped 20 - 30 yen in the course of ps3s life. thats like an extra 80 dollar price cut that they had no control over and probably didnt see coming. They most likely expected to be breaking even by now... now i understand why the kept pushing back break even point. its because the yen kept dropping



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Smashchu2 on 29 May 2009
Spoon! said:

@Smashch2

"Investors will probably want the PS3 gone, asking why they are in an unprofitable market. If Sony can not turn it around in terms of profitability, expect to see the investors deny a PS4. Again, Sony is not a game company. Nintendo can always gets a game system past their investors becuase they invested in a video game company. Sony investors invested in a hardware company that deals in entertainment. They are numerous outlets besides gaming."


Just so you know, investors do not have a say in what the company produces. Sure the investors can be upset and they can voice their opinion by selling their stocks, but as far as votes go,  it is usually just to vote for who will be on the managing board (and the choices are limited), and when the company will make changes to the stocks which will directly affect them such as a stock dividend, stock split or merging with another company. Sure, keeping the investors happy is a goal of any company, but that doesn't mean they can stop the PS4.

Investors pressure that company into doing what they want. Ever heard the phrase used in relationships "If she aint happy, you aint happy?" Same thing. If the investors are not happy, the board is not happy. They aren't going to go dirrectly against the people putting money into the company. That's just stupid. If the investors want Sony out of the videogame market, they are out.

The bolded line shows how naive you are. If the market is unfaviorable, why stay there? The investors expect a high return, so they will pressure the company into actions. Sony will not hold onto the PS line just because Spoon! wants it to be so. The system is unprofitable. Investors will be angry and question the Playsation line. Sony will probably respond and end the Playstation line. If the system is not profitable soon, expect the PS4 to be the Dreamcast 2. There is no way they could justify a PS4 is the brand isn't making profit. 




Smashchu2 on 29 May 2009
Max King of the Wild said:
nightsurge said:
Max King of the Wild said:
yeah! lets kill the ps3 right when it starts bringing money so that way we'll have no chance in making the money back! AWESOME! (BTW Sonys president or what have you said they are only losing 10% on each ps3. therefor there must be something else sucking up money... hm lets logically think about this what has been in the news the last year and hurts businesses... the economy? no that couldnt possibly be the reason)

Probably a combination of:

Currency conversions

Economy

Sony Electronics have decreased in perceived value due to economy (same TV as others for $400 more = no Sony purchase)

PS3 selling at a loss

R&D

I agree but only one of those falls on the ps3.

No, all or most of them cause it. It's simple logic.

The green historian will claim WW1 started due to the assaination of archduke Ferdinan. The experienced one will say the war started from rivalies steaming from colonialism and power struggle as well as secret treadies coming out of the rivalries.

Case in point: One answer is never the right answer.



Squilliam on 29 May 2009
Smashchu2 said:
Max King of the Wild said:
nightsurge said:
Max King of the Wild said:
yeah! lets kill the ps3 right when it starts bringing money so that way we'll have no chance in making the money back! AWESOME! (BTW Sonys president or what have you said they are only losing 10% on each ps3. therefor there must be something else sucking up money... hm lets logically think about this what has been in the news the last year and hurts businesses... the economy? no that couldnt possibly be the reason)

Probably a combination of:

Currency conversions

Economy

Sony Electronics have decreased in perceived value due to economy (same TV as others for $400 more = no Sony purchase)

PS3 selling at a loss

R&D

I agree but only one of those falls on the ps3.

No, all or most of them cause it. It's simple logic.

The green historian will claim WW1 started due to the assaination of archduke Ferdinan. The experienced one will say the war started from rivalies steaming from colonialism and power struggle as well as secret treadies coming out of the rivalries.

Case in point: One answer is never the right answer.

And the rigidities of the rail timetables for war which forced Germany into action.



Tease.

Smashchu2 on 29 May 2009
Squilliam said:
Smashchu2 said:
Max King of the Wild said:
nightsurge said:
Max King of the Wild said:
yeah! lets kill the ps3 right when it starts bringing money so that way we'll have no chance in making the money back! AWESOME! (BTW Sonys president or what have you said they are only losing 10% on each ps3. therefor there must be something else sucking up money... hm lets logically think about this what has been in the news the last year and hurts businesses... the economy? no that couldnt possibly be the reason)

Probably a combination of:

Currency conversions

Economy

Sony Electronics have decreased in perceived value due to economy (same TV as others for $400 more = no Sony purchase)

PS3 selling at a loss

R&D

I agree but only one of those falls on the ps3.

No, all or most of them cause it. It's simple logic.

The green historian will claim WW1 started due to the assaination of archduke Ferdinan. The experienced one will say the war started from rivalies steaming from colonialism and power struggle as well as secret treadies coming out of the rivalries.

Case in point: One answer is never the right answer.

And the rigidities of the rail timetables for war which forced Germany into action.

Wasn't that during the war?



Squilliam on 29 May 2009
Smashchu2 said:
Squilliam said:
Smashchu2 said:
Max King of the Wild said:
nightsurge said:
Max King of the Wild said:
yeah! lets kill the ps3 right when it starts bringing money so that way we'll have no chance in making the money back! AWESOME! (BTW Sonys president or what have you said they are only losing 10% on each ps3. therefor there must be something else sucking up money... hm lets logically think about this what has been in the news the last year and hurts businesses... the economy? no that couldnt possibly be the reason)

Probably a combination of:

Currency conversions

Economy

Sony Electronics have decreased in perceived value due to economy (same TV as others for $400 more = no Sony purchase)

PS3 selling at a loss

R&D

I agree but only one of those falls on the ps3.

No, all or most of them cause it. It's simple logic.

The green historian will claim WW1 started due to the assaination of archduke Ferdinan. The experienced one will say the war started from rivalies steaming from colonialism and power struggle as well as secret treadies coming out of the rivalries.

Case in point: One answer is never the right answer.

And the rigidities of the rail timetables for war which forced Germany into action.

Wasn't that during the war?

http://en.wikipedia.org/wiki/Schlieffen_Plan

Its like the industrial version of MAD with the side who launches first potentially coming out as a winner. History isn't my strong point and this is very OT.



Tease.