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Forums - Sales Discussion - Sony still losing money on every PS3

sinha on 08 July 2009

Reuters: Sony CEO dismisses price cut chatter on PlayStation

SUN VALLEY, Idaho, July 7 - Sony Corp Chief Executive Howard Stringer brushed off concerns that the PlayStation 3 video game console is too expensive, and said the company is unlikely to sell parts of its business amid the recession.

Stringer, arriving at the Allen & Co conference in Sun Valley, Idaho, on Tuesday, described recent comments about PlayStation's price by Robert Kotick, the CEO of video game publisher Activision Blizzard Inc, as standard business tactics.

"He likes to make a lot of noise," Stringer said, when asked about the comments. "He's putting pressure on me and I'm putting pressure on him. That's the nature of business."

Last month, Kotick told the Times of London that Activision might cease developing games for the PlayStation if Sony did not cut the price of the console, which competes with Microsoft Corp's Xbox and Nintendo Co Ltd's Wii.

"When we look at 2010 and 2011, we might want to consider if we support the console," Kotick had said.

Asked about the logic of not cutting prices, Stringer said, "I (would) lose money on every PlayStation I make -- how's that for logic."

 




We don't provide the 'easy to program for' console that they [developers] want, because 'easy to program for' means that anybody will be able to take advantage of pretty much what the hardware can do, so the question is what do you do for the rest of the nine and half years? It's a learning process. - SCEI president Kaz Hirai

It's a virus where you buy it and you play it with your friends and they're like, "Oh my God that's so cool, I'm gonna go buy it." So you stop playing it after two months, but they buy it and they stop playing it after two months but they've showed it to someone else who then go out and buy it and so on. Everyone I know bought one and nobody turns it on. - Epic Games president Mike Capps

We have a real culture of thrift. The goal that I had in bringing a lot of the packaged goods folks into Activision about 10 years ago was to take all the fun out of making video games. - Activision CEO Bobby Kotick

 

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Xxain on 08 July 2009

we know this



sinha on 08 July 2009

Some people have said Sony must be breaking even or even making money on each unit by now. In fact certain people have been saying that since last summer.



We don't provide the 'easy to program for' console that they [developers] want, because 'easy to program for' means that anybody will be able to take advantage of pretty much what the hardware can do, so the question is what do you do for the rest of the nine and half years? It's a learning process. - SCEI president Kaz Hirai

It's a virus where you buy it and you play it with your friends and they're like, "Oh my God that's so cool, I'm gonna go buy it." So you stop playing it after two months, but they buy it and they stop playing it after two months but they've showed it to someone else who then go out and buy it and so on. Everyone I know bought one and nobody turns it on. - Epic Games president Mike Capps

We have a real culture of thrift. The goal that I had in bringing a lot of the packaged goods folks into Activision about 10 years ago was to take all the fun out of making video games. - Activision CEO Bobby Kotick

 

SpartanFX on 08 July 2009

well actually that could mean that they are not losing anything now but if they cut the price they would lose money.



 

 

 

Xxain on 08 July 2009

^ thats how I took it



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Legend11 on 08 July 2009

How much pressure could Sony really put on Activision?



sinha on 08 July 2009
SpartanFX said:
well actually that could mean that they are not losing anything now but if they cut the price they would lose money.

That's not what "I lose money on every PlayStation I make" means.  That's present tense.



We don't provide the 'easy to program for' console that they [developers] want, because 'easy to program for' means that anybody will be able to take advantage of pretty much what the hardware can do, so the question is what do you do for the rest of the nine and half years? It's a learning process. - SCEI president Kaz Hirai

It's a virus where you buy it and you play it with your friends and they're like, "Oh my God that's so cool, I'm gonna go buy it." So you stop playing it after two months, but they buy it and they stop playing it after two months but they've showed it to someone else who then go out and buy it and so on. Everyone I know bought one and nobody turns it on. - Epic Games president Mike Capps

We have a real culture of thrift. The goal that I had in bringing a lot of the packaged goods folks into Activision about 10 years ago was to take all the fun out of making video games. - Activision CEO Bobby Kotick

 

XxXProphecyXxX on 08 July 2009

didn't find where he said he still losing money on ps3 I did however found that he "would" lose money on ps3 if they cut the price(you highlighted it for me)



SpartanFX on 08 July 2009
sinha said:
SpartanFX said:
well actually that could mean that they are not losing anything now but if they cut the price they would lose money.

That's not what "I lose money on every PlayStation I make" means.  That's present tense.

you need to read that again:

they guy asked what is the logic behind not cutting the price of PS3?

He replied:

I WOULD lose money on every PS3 if I cut the price ,how is that for logic?



 

 

 

sinha on 08 July 2009
XxXProphecyXxX said:
didn't find where he said he still losing money on ps3 I did however found that he "would" lose money on ps3 if they cut the price(you highlighted it for me)

Actually, I didn't highlight "would" for you.  I only highlighted the words Stringer actually used.

Stringer never said the word "would"... do you think he puts certain words in parenthesis when he speaks?

 

SpartanFX said:

you need to read that again:

I WOULD lose money on every PS3 if I cut the price ,how is that for logic?

 

No, YOU need to read that again, or at least to read some other news articles or develop a better understanding of the English language.  Stringer never said WOULD.



We don't provide the 'easy to program for' console that they [developers] want, because 'easy to program for' means that anybody will be able to take advantage of pretty much what the hardware can do, so the question is what do you do for the rest of the nine and half years? It's a learning process. - SCEI president Kaz Hirai

It's a virus where you buy it and you play it with your friends and they're like, "Oh my God that's so cool, I'm gonna go buy it." So you stop playing it after two months, but they buy it and they stop playing it after two months but they've showed it to someone else who then go out and buy it and so on. Everyone I know bought one and nobody turns it on. - Epic Games president Mike Capps

We have a real culture of thrift. The goal that I had in bringing a lot of the packaged goods folks into Activision about 10 years ago was to take all the fun out of making video games. - Activision CEO Bobby Kotick