I'm going to guess, no. They overextended themselves this gen, and I just don't see them making it up. However, if they play their cards right the rest of this gen, they could easily make that money back up next gen.

I don't think for awhile at least. Maybe in about a year? Just guessing :)

RolStoppable said: The PS3 is on a ten year plan. Of course it's not supposed to lose money forever.

and the 360

sabby_e17 said: rafichamp said: When new chips roll in, the system will be $100 dollars cheaper to make, and with the slim, maybe about $5. So when the Slim comes out at $299.99, Sony could be making about $3 per console, and about $110 per PSP Go, very good position to be in. Lol how will it be $100 cheaper to make?

Well I don't know about $100 exactly, but smaller process Cell and GPU = more chips per wafer start = cheaper unit price per chip. Plus smaller process IC's typically use less power, meaning Sony can install smaller, lower power PSU's (hence cheaper) and smaller, simpler heatsinks. Smaller process fabrication could also allow Sony to combine many small support IC's into one, simplifying the motherboard design, which again makes it cheaper, with the added bonus of quicker manufacture, reducing labour costs per unit made. Lastly, a smaller PS3 allows smaller packaging, which reduces shipping costs. Whether its $100 cheaper, no idea, but it certainly will be cheaper to manufacture and distribute.

Wait, I need to revise my last post. If the blu ray readers they use become cheaper, as well as the cheaper chip sets. they may actually make some money the last two or so years of the PS3 lifetime, however, I really don't know that they will break even. Everybody who knows anything about business, knows that as production numbers rise, overall costs to produce, are lowered.

czecherychestnut said: sabby_e17 said: rafichamp said: When new chips roll in, the system will be $100 dollars cheaper to make, and with the slim, maybe about $5. So when the Slim comes out at $299.99, Sony could be making about $3 per console, and about $110 per PSP Go, very good position to be in. Lol how will it be $100 cheaper to make? Well I don't know about $100 exactly, but smaller process Cell and GPU = more chips per wafer start = cheaper unit price per chip. Plus smaller process IC's typically use less power, meaning Sony can install smaller, lower power PSU's (hence cheaper) and smaller, simpler heatsinks. Smaller process fabrication could also allow Sony to combine many small support IC's into one, simplifying the motherboard design, which again makes it cheaper, with the added bonus of quicker manufacture, reducing labour costs per unit made. Lastly, a smaller PS3 allows smaller packaging, which reduces shipping costs. Whether its $100 cheaper, no idea, but it certainly will be cheaper to manufacture and distribute.

Yes, but a change from 60nm to 45nm isn't going to save them $100.... maybe $50 at best but that still isn't including the cost to change everything to the new process (changing moulds etc)

I think Sony's key to surviving lies in maintaining its exclusives, having a great 2010/2011, and looking to bounce back significantly in the next generation. Oh and convince the CEO to maintain its gaming division.

Anyone know how their other divisions are faring?

Profit from hardware sales? Not sustainably, since they keep cutting the price to a value under production cost, and this will likely continue to be the case.

For example, now they're almost breaking even, but a price cut is needed... So the price gets cut, they go back to losing money, then after a while production cost goes near the price, but another price cut is needed again. Lather, rinse, repeat.

 

dorbin2009 said: I think Sony's key to surviving lies in maintaining its exclusives, having a great 2010/2011, and looking to bounce back significantly in the next generation. Oh and convince the CEO to maintain its gaming division. Anyone know how their other divisions are faring?

Most of their divisions are faring bad. The only profitable ones are the movies division and the "All Other" which includes things like CD sales.

The bulk of Sony's business is electronics, which is doing bad due to high competition and the recession... then they have financial services which is doing bad due to the financial crisis... Sony Ericsson is the same story as electronics, and games we all know.

http://www.sony.net/SonyInfo/IR/financial/fr/viewer/08q4/

 

TWRoO said: czecherychestnut said: sabby_e17 said: rafichamp said: When new chips roll in, the system will be $100 dollars cheaper to make, and with the slim, maybe about $5. So when the Slim comes out at $299.99, Sony could be making about $3 per console, and about $110 per PSP Go, very good position to be in. Lol how will it be $100 cheaper to make? Well I don't know about $100 exactly, but smaller process Cell and GPU = more chips per wafer start = cheaper unit price per chip. Plus smaller process IC's typically use less power, meaning Sony can install smaller, lower power PSU's (hence cheaper) and smaller, simpler heatsinks. Smaller process fabrication could also allow Sony to combine many small support IC's into one, simplifying the motherboard design, which again makes it cheaper, with the added bonus of quicker manufacture, reducing labour costs per unit made. Lastly, a smaller PS3 allows smaller packaging, which reduces shipping costs. Whether its $100 cheaper, no idea, but it certainly will be cheaper to manufacture and distribute. Yes, but a change from 60nm to 45nm isn't going to save them $100.... maybe $50 at best but that still isn't including the cost to change everything to the new process (changing moulds etc)

Probably not, but remember a shrink from 65nm to 45nm results in a 50% reduction in chip area, hence twice the number of IC's per wafer, hence half the cost per unit (quite broad assumptions, but its a guestimate). So with the extra cost of 45nm fabrication, lets say each 45nm cell costs 60% of a 65nm one. So you are nearly halving the cost of two of the most expensive components in the PS3, even before you factor in all the other cost savings I mentioned previously. Sure it might cost $100million to redesign the masks for 45nm, but over the next 20 - 30 million PS3's, its wittles down to bugger all per unit, and insignificant compared to the savings involved.