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Forums - Sony Discussion - Sony announces Q2 results

So you think Sony took a gamble by releasing a new playstation console hoping people WOULDN'T buy it in large numbers? Thats a slippery road to destruction lol



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Carl2291 said:
damndl0ser said:
CGI-Quality said:
heruamon said:
pterodactyl said:

It only does everything...except generate profits.

 

I wonder what people who said that the slim would make things better for Sony are saying right now?

"It only does everything...except generate profits."

ROFLOL!

As fair as I know you're capabale of being, it's sad that you would applaud such foolishness, particularly when the top company you support is notorious for taking loss after loss on their products as well.

I think the biggest difference is that they still profit as a company overall.  So they can take bigger chances.  

Microsofts initial xbox 1 loss was just an investment.  They knew it wouldn't be profitable and used that platform as a springboard into the industry.

I can't speak for Heruamon, but I don't applaud such foolishness but I did think it was damnd funny. :P

Sony's PlayStation 3 loss is just an investment. They knew it wouldn't be profitable (losing $200+ per unit?) and are using the platform as a springboard for a hugely profitable PlayStation 4.  the not so profitable Blu-Ray player.

*fixed**



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Squilliam said:
CGI-Quality said:

I initially was going to, but then realized that this was the same individual claiming that Sony's biggest issue this gen was the PS3's lackluster sales. The goalpost just keeps moving no matter what they do. I'm not saying that Sony's financial situation looks like roses and flowers but, as you mentioned, it is no where near as bad as originally expected.

No the goal posts don't get moved. The goal posts are and have always been good sales + good profit. Sony were increasing their profitability and losing market share. If they gain market share share and become more unprofitable they are just missing the goal post in a different way. Obviously this changes in scope depending on whether you look at the short term picture or what the financials will be like in 6 months time, but you cannot fault people for focusing on the results they can see in front of them.

This.



LOL...I’m not sure how anybody can possibly compare Sony’s current position and losses wrt to the PS3 to M$ losses in launching the Xbox. Sure, in absolute terms, you can try to compare them, but from a business perspective, Sony was the market leader for the last two generations of consoles, by a massive margin, and now they are in last place, with a cost model that continues to deliver major losses for the short term future. I’d like to see somebody provide a comparable situation to this…



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everdom said:
IMO the main reason for these losses if the $100 price cut that came with the slim, it would have been far more prudent to cut the price by only $50 or not at all, the numbers would certainly have been better atleast!

Sony really has to tread carefully here, clearly software isnt making up the losses like they hoped it would. This is in addition to the PS2 and PSP not being able to pick up the slack as they once did (primarily the PS2). Sony simply wont be able to launch the PS4 the same way they did the PS3 because they wont have the previous consoles to support it as well.


Do you think it would have sold a million consoles in a matter of weeks had they only cut the price $50 or none at all? No.



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Bladeforce said:

So you think Sony took a gamble by releasing a new playstation console hoping people WOULDN'T buy it in large numbers? Thats a slippery road to destruction lol


No Sony's whole plan was that a huge amount of people would purchase the PS3 at $600.00.  Within the first 6 months of the PS3 life Sony knew they had a problem and are still living it.  I believe the price changes that Sony has had to make on the PS3 are running about 2 years ahead of schedule.



Its libraries that sell systems not a single game.

heruamon said:
LOL...I’m not sure how anybody can possibly compare Sony’s current position and losses wrt to the PS3 to M$ losses in launching the Xbox. Sure, in absolute terms, you can try to compare them, but from a business perspective, Sony was the market leader for the last two generations of consoles, by a massive margin, and now they are in last place, with a cost model that continues to deliver major losses for the short term future. I’d like to see somebody provide a comparable situation to this…

I know it's been said a million times already, but if anything, Sony's current situation is comparable to, if not worse than, that of Sega after they released the Dreamcast.



Are we supposed to pretend that Sony was expecting to cut PS3's price by 200 € in Europe before it even had its first holiday season here?

This is directed to those who think Sony lost money on the PS3 on purpose. Really, after a massively successful PS2 why would Sony do that?



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kowenicki said:
@alanshearer

You are talking nonsense...

Do Sony operate in a bubble or alternate universe to everyone else?

Even ignoring what NJ5 says abpove (which is correct) then why would sony be different to the other two companies...? but if you would rather a more like for like comparison...

Samsung... just reported a tripling of profits.

How much profits Samsung?



CGI-Quality said:
NJ5 said:
Are we supposed to pretend that Sony was expecting to cut PS3's price by 200 € in Europe before it even had its first holiday season here?

This is directed to those who think Sony lost money on the PS3 on purpose. Really, after a massively successful PS2 why would Sony do that?

Releasing the console at a $200 loss means it was intentional. Whether or not they EVER plan to be profitable with the PS3 is another matter.

Intentional to lose a little bit of money initially, not on the lifetime of the console.

This is what I was replying to: "They knew it wouldn't be profitable (losing $200+ per unit?) and are using the platform as a springboard for a hugely profitable PlayStation 4."

 



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