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Forums - Sales Discussion - PS3 Shortages Possible, Eating into 360 sales says Analyst

psrock on 16 September 2009

First they predicted the PS3 to die, now these analyst are over predicting the Slim's sale.



 Next Gen 

11/20/09 04:25 makingmusic476 Warning Other (Your avatar is borderline NSFW. Please keep it for as long as possible.)
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Loud_Hot_White_Box on 16 September 2009
Grimes said:
Loud_Hot_White_Box said:
Grimes said:
What about profits? Let's say MS pulls a profit and Sony posts another big loss, who really wins? I'm not saying that will happen, but it could. If you sell more but lose more money, it seems like a Pyrrhic victory.

True, but MS is about $6 billion in the red all-time in the gaming industry, while Sony is 1-2 billion in the black still.

And by selling more consoles without too huge of a loss, they'll keep selling more and more software.  I think they lose $50 per slim now or something...which is way less than they were losing earlier this gen and it's an amount they can make back and more.  The Playstation line was in the black last quarter, last I heard on the matter.

 

 

Sony's network product division, which includes gaming,  lost $414 million last quarter. They were not in the black.

I said the Playstation brand was in the black, last I heard.

You didn't mention the all-time profit numbers.  All MS's gaming moves are a huge Pyrrhic victory, in other words.



scottie on 16 September 2009

Is it bad that I keep reading that as Phallic victory? As if MS and Sony are having a penis measuring contest. Wait, that kinda describes the console war actually :P



Grimes on 16 September 2009
Loud_Hot_White_Box said:
Grimes said:
Loud_Hot_White_Box said:
Grimes said:
What about profits? Let's say MS pulls a profit and Sony posts another big loss, who really wins? I'm not saying that will happen, but it could. If you sell more but lose more money, it seems like a Pyrrhic victory.

True, but MS is about $6 billion in the red all-time in the gaming industry, while Sony is 1-2 billion in the black still.

And by selling more consoles without too huge of a loss, they'll keep selling more and more software.  I think they lose $50 per slim now or something...which is way less than they were losing earlier this gen and it's an amount they can make back and more.  The Playstation line was in the black last quarter, last I heard on the matter.

 

 

Sony's network product division, which includes gaming,  lost $414 million last quarter. They were not in the black.

I said the Playstation brand was in the black, last I heard.

You didn't mention the all-time profit numbers.  All MS's gaming moves are a huge Pyrrhic victory, in other words.

Sony mentioned that the game segment lost money in the quarterly report, so no the Playstation brand was not in the black.

And yeah, MS is losing money too.

Both companies are doing a pretty sad job at making money from video games.



Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.

noname2200 on 16 September 2009
psrock said:
First they predicted the PS3 to die, now these analyst are over predicting the Slim's sale.

Eh, just give 'em a week: they'll swing right back before you know it.



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makingmusic476 on 16 September 2009
Grimes said:
Loud_Hot_White_Box said:
Grimes said:
Loud_Hot_White_Box said:
Grimes said:
What about profits? Let's say MS pulls a profit and Sony posts another big loss, who really wins? I'm not saying that will happen, but it could. If you sell more but lose more money, it seems like a Pyrrhic victory.

True, but MS is about $6 billion in the red all-time in the gaming industry, while Sony is 1-2 billion in the black still.

And by selling more consoles without too huge of a loss, they'll keep selling more and more software.  I think they lose $50 per slim now or something...which is way less than they were losing earlier this gen and it's an amount they can make back and more.  The Playstation line was in the black last quarter, last I heard on the matter.

 

 

Sony's network product division, which includes gaming,  lost $414 million last quarter. They were not in the black.

I said the Playstation brand was in the black, last I heard.

You didn't mention the all-time profit numbers.  All MS's gaming moves are a huge Pyrrhic victory, in other words.

Sony mentioned that the game segment lost money in the quarterly report, so no the Playstation brand was not in the black.

And yeah, MS is losing money too.

Both companies are doing a pretty sad job at making money from video games.

The Networked Devices Division includes more than just PlayStation.  The division posted a loss (probably to do with the mass cutting of prices on Vaios, among other things), but PlayStation is proiftable and has been profitable since the end of the last fiscal year.

Times Online: It’s well known that Sony loses money on every PS3 it sells. Will that still be the case with the new machine?


Kaz: 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.

http://news.vgchartz.com/news.php?id=4931



NJ5 on 16 September 2009

CGI, that quote from Kaz doesn't mean the PS business is profitable.

He says they have "gross profit", which means that they're only profitable if you ignore costs like employee salaries, advertisement etc. (none of which are considered for gross profit).



My Mario Kart Wii friend code: 2707-1866-0957

NJ5 on 16 September 2009
CGI-Quality said:
NJ5 said:
CGI, that quote from Kaz doesn't mean the PS business is profitable.

He says they have "gross profit", which means that they're only profitable if you ignore costs like employee salaries, advertisement etc. (none of which are considered for gross profit).

So what are you saying, the division, AS A WHOLE, isn't profitting?

No, I'm not talking about the division as a whole, since I'm just going by Kaz's comment, which only relates to the Playstation business.

Imagine you have a software company. You pay your employees to work for 2 years to create a piece of software, and then you manufacture a million DVDs with that software and sell it to some retailers. In this case, the gross profit is calculated by simply subtracting the DVD manufacturing/shipment costs from the revenue, ignoring all the costs of creating the software in the first place.

In the Playstation's case, what Kaz is telling us is that their revenue minus their manufacturing/shipment costs is a positive number. Which doesn't mean the business is profitable, since Sony employs thousands of people in their PS business, not to mention all the other costs like advertisement and outsourced R&D, etc...

 



My Mario Kart Wii friend code: 2707-1866-0957

scottie on 16 September 2009

Thanks for clearing that up NJ5. You know what sucks? Accounting sucks :P



MrNathanDrake on 16 September 2009

sooooo.... people are switching from sales arguments, to now arguing about profits?


LOL