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Forums - Sony Discussion - Sony PS division has lost $4.7 Billion since launching PS3

woopah on 30 October 2009

the manufacturing cost of PS3 is 10% higher than retail price.

PS3 business is unprofitable. They expect to hit profitabillity in the next fiscal year.

so basically they are losing $30 or more on every slim sold. However they said that manufacturing costs will contine to fall so by next year they will only be 5% above retail price. I still think Sonys game division will fall into an overall loss before they climb out of it again



 nintendo fanboy, but the good kind

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Grimes on 30 October 2009
alanshearer said:
Grimes said:
alanshearer said:
puffy said:
Sony as a company have problems and this is simply down to sub par management.


I have to laugh at stuff like this. You havent a clue AT ALL. The year before the financial/currency meltdowns Sony posted record profits. The Yen surging put most major Japanese companies in trouble. It's not rocket science kid.

 

Then you would likewise have to make the same excuse for MS a few years ago when the US dollar was at an all time high.


Erm no. In the space of 8 months it went from 118 Yen to the dollar to 87 Yen to the dollar. A $3billion profit a year earlier suddenly went to a $1billion loss just because of the blistering strength of the Yen. The other divisions within Sony were quite comfortably eating up the ps3's losses and suddenly that was no longer possible. It's also why we didnt see a ps3 pricecut in 2008.

Erm yes. Because it's a two way street.



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.

1337 Gamer on 30 October 2009

wow very interesting. Though im not really surprised. SONY really needs software sales to pick up. They took a gamble releasing the Slim and well see how it pays off (monetarily wise).



I mostly play RTS and Moba style games now adays as well as ALOT of benchmarking. I do play other games however such as the witcher 3 and Crysis 3, and recently Ashes of the Singularity. I love gaming on the cutting edge and refuse to accept any compromises. Proud member of the Glorious PC Gaming Master Race. Long Live SHIO!!!! 

evolution_1ne on 30 October 2009
welshbloke said:
I was suprised when Sony played the New model and price cut both cost money. I see this as a big gamble that only a big increase in software sales can bail them out. Then it could be said that it was a case of "all in".

The jury is out whether the software sales will fill this large cash void it is also questionable how good a business decision it has been to provide a free robust network such as PSN. They have to be kicking themselves when they see all the 360 gamers providing additional revenue in this key area.

yeah that or scratching their head at how many people are so retarded



disolitude on 30 October 2009

Sony lost more in 10 Q1 and 10 Q2 than Sega did in their twilight years from 1997 - 2001.

And I don't even want to touch MS losses from 2001-2005.

Must be nice to have that kind of money... oh how the indrustry has changed.

Time for another crash?



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Fab_GS on 30 October 2009

That's huge!



Steroid on 30 October 2009
Grimes said:
Anyone know what the total losses are for the xbox and xbox 360 generations? Combined I think the losses were around $7 billion if I recall. However for a single generation, I think Sony may be the leader now, or maybe caboose would be a better term.

6 billion in the hole for the original Xbox and 3 billion for 360.



Steroid on 30 October 2009

I hope people realize with these losses why there won't be a PS4 announced anytime soon. Or a 720 for that matter.



alanshearer on 30 October 2009
Grimes said:
alanshearer said:
Grimes said:
alanshearer said:
puffy said:
Sony as a company have problems and this is simply down to sub par management.


I have to laugh at stuff like this. You havent a clue AT ALL. The year before the financial/currency meltdowns Sony posted record profits. The Yen surging put most major Japanese companies in trouble. It's not rocket science kid.

 

Then you would likewise have to make the same excuse for MS a few years ago when the US dollar was at an all time high.


Erm no. In the space of 8 months it went from 118 Yen to the dollar to 87 Yen to the dollar. A $3billion profit a year earlier suddenly went to a $1billion loss just because of the blistering strength of the Yen. The other divisions within Sony were quite comfortably eating up the ps3's losses and suddenly that was no longer possible. It's also why we didnt see a ps3 pricecut in 2008.

Erm yes. Because it's a two way street.

The Yen fluctuation was a shock and awe event. Almost overnight most major Japanese companys profits were wiped out and put into major debt. It'l take these companies a couple of years to properly respond to this. Strengthening/strong currencies normally happen over a prolonged period of time not a few months.



alanshearer on 30 October 2009
woopah said:
the manufacturing cost of PS3 is 10% higher than retail price.

PS3 business is unprofitable. They expect to hit profitabillity in the next fiscal year.

so basically they are losing $30 or more on every slim sold. However they said that manufacturing costs will contine to fall so by next year they will only be 5% above retail price. I still think Sonys game division will fall into an overall loss before they climb out of it again


Hmm so when adding on software sales, playstation store etc they should be profitable next quarter?.