By using this site, you agree to our Privacy Policy and our Terms of Use. Close

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

FinalEvangelion on 09 September 2009

Probably would be losing more on marketing than actual hardware costs.



"Naturally the common people don't want war: Neither in Russia, nor in England, nor for that matter in Germany. That is understood. But, after all, IT IS THE LEADERS of the country who determine the policy and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is TELL THEM THEY ARE BEING ATTACKED, and denounce the peacemakers for lack of patriotism and exposing the country to danger. IT WORKS THE SAME IN ANY COUNTRY."  --Hermann Goering, leading Nazi party member, at the Nuremberg War Crime Trials 

 

Conservatives:  Pushing for a small enough government to be a guest in your living room, or even better - your uterus.

 

Around the Network
JEDE3 on 09 September 2009
pterodactyl said:
greenmedic88 said:
JEDE3 said:

http://arstechnica.com/gaming/news/2009/08/sony-still-losing-money-with-the-ps3-slim.ars

"If you're just talking about the hardware alone, the quick answer is yes. That makes good headlines, but I don't actually know that that's the true nature of the business that we're all in, whether it's PlayStation, Xbox or the Wii. I think the better indicator is to look at the business as a whole platform, to ask: are you profitable in terms of the hardware, software and peripherals. And the answer to that question is yes on a gross profit level since the last fiscal year."

obvious there are more costs to running a business than just PS3 HW.

This has always been SCE's business model since the PS1. The current generation differs primarily because it started with the largest discrepancy between manufacturing cost and retail cost yet seen to date. A $240 net loss per unit is ridiculous for something expected to sell in the millions.

Less than three years later, SCE has managed to whittle that down to under $40, which would also be about as ridiculous (being able to scale down manufacturing costs so quickly) if it weren't so likely that this was all a part of the long term plan from the beginning.

The the key discrepancy limiting success was the delayed acceptance rate relative to the last generation, not surprising given the 2X difference in initial retail price.

But the reason why the focus by so many has been directed at the losses per unit, is that some tie this directly to SCE's ability to stay in the hardware business. And let's face it; some, for whatever personal reasons, are actually hoping to see SCE exit the business and will naturally focus on what they see as proof this has to happen.

Of course, everyone knows it's not the profit per hardware unit that makes a platform successful, rather the ability to draw continued development support from the broadest spectrum of third parties. It's really only when that support dries up that a platform is finished, other than any major management level incompetence.

I don't think anyone WANTS to see SCE leave. However, given the fact that they're STILL losing money on each console sold AND the fact that they're taking a huge gamble by assuming that SW/peripheral sales will make up for their losses, it's not an impossible outcome.

Maybe you sould educate yourself before making such bold comments. They aren't taking a huge gamble by assuming SW will make up the costs because SW has been making up the costs since last FY.... it isn't an assumption anymore.



LordTheNightKnight on 09 September 2009

Where does it say software has been making up the costs?



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

JEDE3 on 09 September 2009

black text "since last FY year"



LordTheNightKnight on 09 September 2009
JEDE3 said:
black text "since last FY year"

I meant a link. And some of us don't know what FY means.



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

Around the Network
JEDE3 on 09 September 2009

The link is in the same post.

http://arstechnica.com/gaming/news/2009/08/sony-still-losing-money-with-the-ps3-slim.ars

And FY is Fiscal Year which is April - March. So sometime between April '08 and March '09 Sony turned profit with HW/SW/periphs. It's the other costs of running a business that's been dragging them down. Marketing/employee wages/ect



LordTheNightKnight on 09 September 2009

Okay, although directly quoting the relevant part would have been better than just writing your own stuff. I had to read it three times to get that part.

But regardless, I wouldn't have minded if they had started out this way, instead of what they did before.



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

Proconsul on 09 September 2009

Who cares really if a company like Sony lose money. They are still fu@@ing big. They have now yours.



LordTheNightKnight on 09 September 2009
Proconsul said:
Who cares really if a company like Sony lose money. They are still fu@@ing big. They have now yours.

Why would you think they have mine? I speficially wrote I might buy one later on. I don't care if they can "make up" the losses now. I'm buying it when they get a profit period.



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

Proconsul on 09 September 2009

Ok sorry, I didn't mean it so. But I think it is a big company and they have a few people who know their business. They made huge sales now and will do it in future. I paused with video games a few years, but bought a PSP and a used X360. So I think I will be back (had a 3DO, Sega Saturn and Mega Drive/CD/32x). Looking forward for a PS3, around XMAS. Wait for a good bundle. and after today that they lowered the price to 349, who knows what will happen around the holiday season. The price war is on and we as consumer are in a good position. I can remember how much money I once spend for games, now the prices are really low.