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Forums - Sales Discussion - I sincerely hope Sony didn't lose too much money on the PS3 Slim launch.

"if I bought it right now doesn't make me feel as though I would be supporting Sony."

You have over 6k posts and I've never seen you post before. Hello!

Now..no. It's not a bad idea, and they aren't losing nearly as much as you think. Take into account the PS3 slim doesn't come with any games, so, say 350,000-400,000 of those 'new owners' at the very least, probably a lot more than that, have to buy a game to play on the console because they're like you - they don't have any. So let's say 150,000 of them buy a used game to start. That's still 200,000-250,000 people who are buying a brand new copy of a game. At least. And how many bought more than 1 game when they bought their slim?

That 5 million they've possibly lost has already been accounted for.

This numbers are all made up and shouldn't be assumed as me making claims on Sony's behalf and if you're too dumb to realize that and flame me for it, well I don't know what to tell you. I'm not saying the numbers are real, they're hypothetical. The logic, however, is there.



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The only logic I care about is if Sony starts posting healthy profits again, especially when the system truly is sold at a profit. Until then, speculation is just that (since I admitted the $5 million was just a guess).



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

Ijneul said:
Buzzi, stop being a fanboy, Sony have had this plan for a while and now it's starting to work, what on earth makes you think sony have not learned from everything that has happened they adapted from 2007 i would say they have already realised what went wrong.
At what point did i attack the wii hmm let me think, hmm never i would quite gladly chose ps3 or wii over unamed consoles lol due to reliability

I'm not a fanboy, fanboy is a person who doesn't make rasonable statements. My statement was rasonable: they started selling in 2006 the PS3 for a loss, than make a small profit in this months (taking loss in the whole brand) and now with the price cut and the new model (which will make more competitive the brand, I know) they're making the same mistake.

You can't say it global recession's fault, or atleast not all: a 400 bln $ of loss is a sign of multiple reasons and you can's say that the one of the most important is Sony's fault.

Maybe their plan will work for ten years and is solid like you say, but don't you think that another year with a probable loss is a bad thing? In the last quarter they lost a lot and now, with a price cut and a new model sold with negative profit, they'll make profit? I'm not a fanboy, i just hate those who don't understand their errors after so much time!



CURRENTLY PLAYING: Xenoblade (Wii), Super mario 3D land (3DS), Guild Wars (PC)

 

LordTheNightKnight said:
Sorry, but unless you can prove most PS3 owners bought as much as you, they aren't making a profit based on your own anecdote.

You can't make this system viable when it's already proven you can lose more than you can gain (PS3, Xbox, and Xbox 360 all losing billions).

If I counted right, there were 7 retail games and several downloadable ones in that list. VGcharts tracks the historical PS3 tie ratio at 6.33 retail titles, thus the given amount sounds pretty typical when it comes to licensing profit.

And regarding my previous post, you glossed over the important point: that you should not mix up scalable and not-scalable quantities. You said in your OP that you hope each PS3 can be sold at a profit soon, but the fixed costs of SCE might as well be brought up against a profitable hardware as well.

More consistently, if you consider the bulk of scalable revenue instead of just the PS3+one dualshock box, that is most probably in the black yet (6.33 retail titles equal about $50 per unit in licensing, add about $20 per unit in controllers/accessories, add licensing from DLC and first party games profits as publishers, indirect revenue from ads and Blu-ray push, video rental and sales...). If you take all scalable revenues together and they bring each unit in the black against scalable costs (production,distribution), their increase can only help to cover the fixed, non-scalable costs for R&D, marketing, network infrastructure etc.

Thus shouldn't we deduce that the more PS3 slim Sony sells, the better it is for Sony's finances? Which kind of is contrary to your original statement? It doesn't guarantee to cover the fixed costs, but the more sold the better.

PS: saying that "it's already proven you can lose more than you can gain" doesn't add much to the quantification. Of course Sony lost a great deal of money, as they started selling the hardware itself at a $300 loss per unit, which took 2 and a half years to dwindle down to about $40 loss. That's pretty hard to cover with licenses and accessories, and it doesn't prove that the model can't be viable with current numbers.



"All you need in life is ignorance and confidence; then success is sure." - Mark Twain

"..." - Gordon Freeman

"and it doesn't prove that the model can't be viable with current numbers."

Yes, it does. These numbers are still coming after losing $3 billion. Pretending that somehow doesn't count now won't work.



A flashy-first game is awesome when it comes out. A great-first game is awesome forever.

Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs

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buzzi you were being a fanboy by saying you hope sony loses money on every slim sold, what kind of attitude is that??
yes they are losing out money on each one, i'm not that blind to admit that but atleast they are losing less now than what they originally were, and software sales should more than make up for it this time, last time it was not as the diffrence was too big.



it's the future of handheld

PS VITA = LIFE

The official Vita thread http://gamrconnect.vgchartz.com/thread.php?id=130023&page=1

jneul said:
buzzi you were being a fanboy by saying you hope sony loses money on every slim sold, what kind of attitude is that??
yes they are losing out money on each one, i'm not that blind to admit that but atleast they are losing less now than what they originally were, and software sales should more than make up for it this time, last time it was not as the diffrence was too big.

Ok maybe, I used to be a fanboy before joining VG Chartz, and I used to hate Sony...but now I'm trying to see the things in a different way.

What I wanted to say is that if they lose money for 1-2 quarters or more they don't have to complain because of the recession, the users or the third party, but it's their OWN fault, because selling with a loss is always a problem: maybe their brand is profitable, but i doubt that the profits of the brand will recover all the expenses in marketing, developing and so on. With "brand profit" i thought he meant that the profit of software can be enough to recover the loss of the hardware, but not enough to guarantee a profit in the whole Sony's economy (or at least not in the Entertainment department).



CURRENTLY PLAYING: Xenoblade (Wii), Super mario 3D land (3DS), Guild Wars (PC)

 

The Sony strategy that cost them billions is selling the PS3 for a big loss while not selling that much to get comfortable SW sales and profit.

Now, they still seem to be lsoing money on the Slim but the numbers of PS3 sold should benefit them as far s muchg higher SW sales.

Now, this is what I am hoping for Sony cause if they still manage to lose money on the PS3 front (including revenues from HW and SW), than they really have a terrible management team running their business...



Elaine: I will never understand people

Jerry: They're the worst.

Anyhow, it will take ages to come back on the green and absorb the loss form the past.



 

Evan Wells (Uncharted 2): I think the differences that you see between any two games has much more to do with the developer than whether it’s on the Xbox or PS3.

oh you actually admitted you hated sony... why may i ask did you get unlucky last gen with the ps2 or something.
either way there is no reason to say you hope sony loses money, i mean really it helps out nintendo if they still are in the competition because that way nintendo will keep on trying to make good titles, if any one console is just dominating by itself the company can become arrogant and rely to much on re-iterated games, i think all those party games are a very good example of just this, people will get fed up of them eventually.



it's the future of handheld

PS VITA = LIFE

The official Vita thread http://gamrconnect.vgchartz.com/thread.php?id=130023&page=1