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Forums - Sony - PS3 Strategy is Starting to Pay Off

Rath on 07 November 2009
alanshearer said:
peachbuggy said:
Rath said:

He's saying the Wii will probably follow the path that every market leader seems to follow - continuing to sell into the next generation. Generally the competitors don't manage to do that for a very long time, they get discontinued within about a year.

Well said. Put in such a way that even the stubborn fanboys should understand.....

Only Sony consoles have continued to sell into the next generations, and thats because they've been future proofed to an extent. The same will happen with the ps3 with bluray being the biggest factor.

*Facepalm*

The PS1 and PS2 were both inferior as far as power goes to their competitors, the reason they continued to sell had nothing to do with future proofing. The Atari 2600, NES and SNES all continued to sell into the next generation.

I can't find a single thing in your post that isn't wrong.



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alanshearer on 07 November 2009
Rath said:
alanshearer said:
peachbuggy said:
Rath said:
 

He's saying the Wii will probably follow the path that every market leader seems to follow - continuing to sell into the next generation. Generally the competitors don't manage to do that for a very long time, they get discontinued within about a year.

Well said. Put in such a way that even the stubborn fanboys should understand.....

Only Sony consoles have continued to sell into the next generations, and thats because they've been future proofed to an extent. The same will happen with the ps3 with bluray being the biggest factor.

*Facepalm*

The PS1 and PS2 were both inferior as far as power goes to their competitors, the reason they continued to sell had nothing to do with future proofing. The Atari 2600, NES and SNES all continued to sell into the next generation.

I can't find a single thing in your post that isn't wrong.

Whatever i dont care just telling you how it is. If bluray catches on it will ensure the ps3 has a long life.



Gnizmo on 07 November 2009
alanshearer said:

Whatever i dont care just telling you how it is. If bluray catches on it will ensure the ps3 has a long life.

Except that is not how it is, actually. The PS2 was the second weakest system. The Xbox had an edge in almost every technical aspect. It was not the technology that kept them selling, but the popularity. This has been shown in many non-Sony systems as well, which you initially denied. Rath is pretty much spot on for this one.



Starcraft 2 ID: Gnizmo 229

Squilliam on 07 November 2009
MikeB said:

@ DirtyP2002

And as I said before, the PS3 is a good console. It is fun to play, but a financial failure.


It's going to take a long time to determine this.

How successful will the PS3 be in the future regarding game sales? How much of an impact will the PS3 have on Sony's sales overall, for example sales of additional HDTVs, Blu-Ray movies, surround sound audio sets, etc. Or would the HD movie war have costed Sony more without the PS3, will the PS3 have additional revenue from things like PlayTV and other still under development projects, etc?

That's a long term question. That the PS3 would require a lot of investments from Sony the first years on the market was already a given.

Don't you see the timing for coming to conclusions just isn't right and there are many different factors involved?

HD DVD was a financial failure and so was the original XBox, we can agree on this as they are of no effect today anymore, but not the PS3.

So does that mean when I look at Microsofts financial results due to the relative failure of Vista next to expectations that I should console myself with the thought that it could have meant they had extra Xbox 360 sales as Macs don't play games very well?

Btw HD DVD is winning in China...



Tease.

tube82 on 07 November 2009

The strategy is paying off because they are closing the gap to the 2nd place console again? while still making a loss? really?
how comes you consider only the number of consoles sold as "success"?
if thats how it is maybe microsoft should sell the elite for 49$ now, they might even catch the wii and "win" the generation.
shouldn't matter that they'd make billions of losses, because they "are winning", right?

this is a business, you make money - you succeed. you lose money - you don't.
sony STILL loses more than a billion a year with the ps3.

in my opinion going into the slim sony already was in a lose/lose situation. either they ignore the marketshare to not make more losses (no price cut) or they try to save the playstation brands market share while dropping the price and sell at a loss for some more time.

either way, no success at all really.



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huaxiong90 on 07 November 2009

Like I said before, if the PS3 can hold well against another 360 price cut next year, then they have a chance at profitability.



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DirtyP2002 on 07 November 2009
MikeB said:

@ DirtyP2002

And as I said before, the PS3 is a good console. It is fun to play, but a financial failure.


It's going to take a long time to determine this.

How successful will the PS3 be in the future regarding game sales? How much of an impact will the PS3 have on Sony's sales overall, for example sales of additional HDTVs, Blu-Ray movies, surround sound audio sets, etc. Or would the HD movie war have costed Sony more without the PS3, will the PS3 have additional revenue from things like PlayTV and other still under development projects, etc?

That's a long term question. That the PS3 would require a lot of investments from Sony the first years on the market was already a given.

Don't you see the timing for coming to conclusions just isn't right and there are many different factors involved?

HD DVD was a financial failure and so was the original XBox, we can agree on this as they are of no effect today anymore, but not the PS3.


Actually, it is not that complicated.

PlayTV flopped already in the countries it is available. So this won't change anything.

HDTVs would be on the rise even without the PS3. Companies like Toshiba, Samsung, Panasonic, Sharp or any other TV manufacturer would still push this new product. Sony would be one of them.

BluRay is not a "Sony only" product. Look, Toshiba lost 1 billion with the HD-DVD and HD-DVD was practically only Toshiba.
http://www.engadget.com/2008/03/12/toshiba-swallows-a-billion-dollars-on-hd-dvd/

No, the HD movie war would not have costed Sony more without the PS3. If BluRay lost, Sony would probably made a loss a little bit less than 1 billion USD. Remember, PS3 is at a 6 billion loss... and counting.

Or let's hear what Sir Howard Stringer had to say about the PS3 and getting the money back.

You have spent three billion dollars on the Playstation 3, disregarding research and development. Can you ever get your money back?

Stringer: Not for as long as I live (laughs). It will certainly take some time. The traditional business model for the Playstation envisaged us making a loss with the hardware in the early years until the production costs had decreased to a point that enabled us to break even

http://www.welt.de/english-news/article2358382/Future-of-Sony-Ericsson-uncertain.html

This interview is 14 months old and the losses for the division increased another 1.7 billion USD. (Still disregarding research and development) The losses of the PS3 probably even faster. So 6 billion is a very conservative guess.



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ArcticGabe on 07 November 2009

It's too late for sony to catch up already, and we haven't seen the best of xbox 360 yet, (Natal or xbox 360 price cut) Don't tell me Elite got a price cut, it's just pro with a larger harddrive.

IMO PS3 is going to end up in a distance dead last.



alanshearer on 07 November 2009
Gnizmo said:
alanshearer said:

Whatever i dont care just telling you how it is. If bluray catches on it will ensure the ps3 has a long life.

Except that is not how it is, actually. The PS2 was the second weakest system. The Xbox had an edge in almost every technical aspect. It was not the technology that kept them selling, but the popularity. This has been shown in many non-Sony systems as well, which you initially denied. Rath is pretty much spot on for this one.

You're struggling here arent you?. Bluray if it really takes off will ensure a long ps3 lifespan. That is unless they keep cutting the price and rely on software for profits, then it would be unsustainable.



XxXProphecyXxX on 07 November 2009

@artic

If I can recall correctly ppl wer so confident early this year that the gap would be 10m by now specially when charttrak released a report showing 360>wii and 360 saw huge adjustment (But was adjusted back down as the report was confirmed wrong) ppl were so sure abt the 10m gap.....well were is it now? ppl also said ps3 will be back selling low 3 weeks after price cut.....well wat happened? my point here is don't be so sure yet about how natal will do this and that cause what if it doesn't do anything at all.