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Forums - Sony - PS3 Strategy is Starting to Pay Off

reptile168 on 06 November 2009

Sony will finish second not because of its "strategy", they will finish second because of its dominance in Japan. That is the tipping point. US should mainly be 360, Europe/Others will mainly be PS3. Japan is the difference maker.



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Xbbjf9s on 06 November 2009

PS3 will be over the 360 in "others" next week...I can't wait to see the numbers when ff13 comes out.



Xoj on 06 November 2009
DirtyP2002 said:
Xoj said:
DirtyP2002 said:
austin2359 said:

Sony launched with a lot of features and a very high price.  The machine was ahead of its time.  Sony preferred to keep the price high to limit losses, and wait to open itself to the mass market later with to price cuts.  Sony could afford to wait to cut the price, because its technology was so far ahead of its time that the risk of obsolesce was non-existent.  Plus if Sony took a larger loss and sold it at a competitive price, each price drop would no longer serve as an incentive to buy.  Also, there  is no way the expanded audience of casual gamers who may have bought the console at a lower launch price would buy enough games to make the price cut worth it for Sony's losses.

 

The machine has so much staying power that Sony can afford to slowly cut the price, increasing its sales in intervals and ultimately finishing ahead of its direct HD competitor.  The fact that Sony still has room to cut the price and blu-ray will only get bigger, along with its increased reliability, virtually guarantees that Sony will finish at least in second this generation.  I would give the Wii the edge over the PS3, but with its staying power, it isn't out of the question that the PS3 can close the gap at the end of 10 years.  Nintendo has built up such a large lead, that even though it lacks the staying power, I think Sony may not catch it.  But for making a HD console, Sony had the right strategy.  And Sony already had a successful standard definition console with the PS2 so making another SD console would lead to market saturation.


Okay, the PS3 is a good console, but this posts is full of fail. Sony kept the price to limit the losses... Well since the PS3 launched, the division lost 4.7 billion USD. That is quite a number. And this is limited? The losses ONLY made by the PS3 are probably around 6 billion. 4.7 reported + the profit of the PS2 and PSP for 3.5 years!

Sony MIGHT make it to 2nd place, but this won't change anything. The PS3 is a financial failure. Sure a good gaming-system, but for Sony it is a failure. Nintendo is printing money, MS is making a profit for more than 1 year now and in 1 or 1.5 years, the Xbox360 will be a profitable product overall.

There is no chance, that Sony will cover the losses made (and still making) in the future.

Believe me, if Sony had the chance to create the PS3 again, they would change their strategy.

If you look at this gen and you had to chose one loser, it would be Sony.

 

the xbox lost almost twice ps3 lost. yet sony as whole remained profitable until recent economy crisis (caused by USA?). xbox brand its more than 7 billions in the hole as now.

u know second place it's loosing, it doens't matter both microsoft and sony lost tons of money. at much as a gamer enjoy the games, if they win or loose money it's just fanboy talk.

No it did not. 4.2 billion. PS3 lost way more. 1.8 billion more and counting. And with the money lost with the Xbox and Xbox360, they build a whole new brand.

xbox lost  6 billions and the 360 adds over 1 - 2 billions more.

Ps3 4.7 billions.



Garnett on 06 November 2009

I hate threads like this, "A" console gets a price cut then it starts SLIGHTLY outselling the "B" console and people make threads saying that "B" console is doomed until console "B" cuts its price and starts to outsell console "A"

 

This goes both ways, for 360 and PS3 fans. Im just saying NEITHER company has played there aces.



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damndl0ser on 06 November 2009
Xoj said:
DirtyP2002 said:
Xoj said:
DirtyP2002 said:
austin2359 said:

Sony launched with a lot of features and a very high price.  The machine was ahead of its time.  Sony preferred to keep the price high to limit losses, and wait to open itself to the mass market later with to price cuts.  Sony could afford to wait to cut the price, because its technology was so far ahead of its time that the risk of obsolesce was non-existent.  Plus if Sony took a larger loss and sold it at a competitive price, each price drop would no longer serve as an incentive to buy.  Also, there  is no way the expanded audience of casual gamers who may have bought the console at a lower launch price would buy enough games to make the price cut worth it for Sony's losses.

 

The machine has so much staying power that Sony can afford to slowly cut the price, increasing its sales in intervals and ultimately finishing ahead of its direct HD competitor.  The fact that Sony still has room to cut the price and blu-ray will only get bigger, along with its increased reliability, virtually guarantees that Sony will finish at least in second this generation.  I would give the Wii the edge over the PS3, but with its staying power, it isn't out of the question that the PS3 can close the gap at the end of 10 years.  Nintendo has built up such a large lead, that even though it lacks the staying power, I think Sony may not catch it.  But for making a HD console, Sony had the right strategy.  And Sony already had a successful standard definition console with the PS2 so making another SD console would lead to market saturation.


Okay, the PS3 is a good console, but this posts is full of fail. Sony kept the price to limit the losses... Well since the PS3 launched, the division lost 4.7 billion USD. That is quite a number. And this is limited? The losses ONLY made by the PS3 are probably around 6 billion. 4.7 reported + the profit of the PS2 and PSP for 3.5 years!

Sony MIGHT make it to 2nd place, but this won't change anything. The PS3 is a financial failure. Sure a good gaming-system, but for Sony it is a failure. Nintendo is printing money, MS is making a profit for more than 1 year now and in 1 or 1.5 years, the Xbox360 will be a profitable product overall.

There is no chance, that Sony will cover the losses made (and still making) in the future.

Believe me, if Sony had the chance to create the PS3 again, they would change their strategy.

If you look at this gen and you had to chose one loser, it would be Sony.

 

the xbox lost almost twice ps3 lost. yet sony as whole remained profitable until recent economy crisis (caused by USA?). xbox brand its more than 7 billions in the hole as now.

u know second place it's loosing, it doens't matter both microsoft and sony lost tons of money. at much as a gamer enjoy the games, if they win or loose money it's just fanboy talk.

No it did not. 4.2 billion. PS3 lost way more. 1.8 billion more and counting. And with the money lost with the Xbox and Xbox360, they build a whole new brand.

xbox lost  6 billions and the 360 adds over 1 - 2 billions more.

Ps3 4.7 billions.

Your not taking into account that the 360 has turned a profit for some time.  



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ph4nt on 06 November 2009

I think it's never going to pay off. Sony has yet to make a penny from the PS3, and the losses are much bigger on PS3 alone than their reports say (since it's profit for the entire division, including PS2 and PSP which are profitable).

Sony may start gaining market share, but they will not make back their money this generation.

The PS3 probably lost more money than the original xbox.

They will have to sell their next system at a profit if they actually want to make money for a generation.



ph4nt on 06 November 2009
Xoj said:
DirtyP2002 said:
Xoj said:
DirtyP2002 said:
austin2359 said:

Sony launched with a lot of features and a very high price.  The machine was ahead of its time.  Sony preferred to keep the price high to limit losses, and wait to open itself to the mass market later with to price cuts.  Sony could afford to wait to cut the price, because its technology was so far ahead of its time that the risk of obsolesce was non-existent.  Plus if Sony took a larger loss and sold it at a competitive price, each price drop would no longer serve as an incentive to buy.  Also, there  is no way the expanded audience of casual gamers who may have bought the console at a lower launch price would buy enough games to make the price cut worth it for Sony's losses.

 

The machine has so much staying power that Sony can afford to slowly cut the price, increasing its sales in intervals and ultimately finishing ahead of its direct HD competitor.  The fact that Sony still has room to cut the price and blu-ray will only get bigger, along with its increased reliability, virtually guarantees that Sony will finish at least in second this generation.  I would give the Wii the edge over the PS3, but with its staying power, it isn't out of the question that the PS3 can close the gap at the end of 10 years.  Nintendo has built up such a large lead, that even though it lacks the staying power, I think Sony may not catch it.  But for making a HD console, Sony had the right strategy.  And Sony already had a successful standard definition console with the PS2 so making another SD console would lead to market saturation.


Okay, the PS3 is a good console, but this posts is full of fail. Sony kept the price to limit the losses... Well since the PS3 launched, the division lost 4.7 billion USD. That is quite a number. And this is limited? The losses ONLY made by the PS3 are probably around 6 billion. 4.7 reported + the profit of the PS2 and PSP for 3.5 years!

Sony MIGHT make it to 2nd place, but this won't change anything. The PS3 is a financial failure. Sure a good gaming-system, but for Sony it is a failure. Nintendo is printing money, MS is making a profit for more than 1 year now and in 1 or 1.5 years, the Xbox360 will be a profitable product overall.

There is no chance, that Sony will cover the losses made (and still making) in the future.

Believe me, if Sony had the chance to create the PS3 again, they would change their strategy.

If you look at this gen and you had to chose one loser, it would be Sony.

 

the xbox lost almost twice ps3 lost. yet sony as whole remained profitable until recent economy crisis (caused by USA?). xbox brand its more than 7 billions in the hole as now.

u know second place it's loosing, it doens't matter both microsoft and sony lost tons of money. at much as a gamer enjoy the games, if they win or loose money it's just fanboy talk.

No it did not. 4.2 billion. PS3 lost way more. 1.8 billion more and counting. And with the money lost with the Xbox and Xbox360, they build a whole new brand.

xbox lost  6 billions and the 360 adds over 1 - 2 billions more.

Ps3 4.7 billions.

It's 6 billion total, the original xbox lost 4.5 or something billion.

Plus the PS3 lost more than 4.7 billion, the Sony entertainment division as a whole lost 4.7 billion. The PS2 and PSP are making a profit, PS3 is not, and I think those have made more than 1.3 billion in profit these past 3 years. So Ps3 is probably over 6 billion in the hole.



DirtyP2002 on 06 November 2009
ph4nt said:
Xoj said:
DirtyP2002 said:
Xoj said:
DirtyP2002 said:
austin2359 said:

Sony launched with a lot of features and a very high price.  The machine was ahead of its time.  Sony preferred to keep the price high to limit losses, and wait to open itself to the mass market later with to price cuts.  Sony could afford to wait to cut the price, because its technology was so far ahead of its time that the risk of obsolesce was non-existent.  Plus if Sony took a larger loss and sold it at a competitive price, each price drop would no longer serve as an incentive to buy.  Also, there  is no way the expanded audience of casual gamers who may have bought the console at a lower launch price would buy enough games to make the price cut worth it for Sony's losses.

 

The machine has so much staying power that Sony can afford to slowly cut the price, increasing its sales in intervals and ultimately finishing ahead of its direct HD competitor.  The fact that Sony still has room to cut the price and blu-ray will only get bigger, along with its increased reliability, virtually guarantees that Sony will finish at least in second this generation.  I would give the Wii the edge over the PS3, but with its staying power, it isn't out of the question that the PS3 can close the gap at the end of 10 years.  Nintendo has built up such a large lead, that even though it lacks the staying power, I think Sony may not catch it.  But for making a HD console, Sony had the right strategy.  And Sony already had a successful standard definition console with the PS2 so making another SD console would lead to market saturation.


Okay, the PS3 is a good console, but this posts is full of fail. Sony kept the price to limit the losses... Well since the PS3 launched, the division lost 4.7 billion USD. That is quite a number. And this is limited? The losses ONLY made by the PS3 are probably around 6 billion. 4.7 reported + the profit of the PS2 and PSP for 3.5 years!

Sony MIGHT make it to 2nd place, but this won't change anything. The PS3 is a financial failure. Sure a good gaming-system, but for Sony it is a failure. Nintendo is printing money, MS is making a profit for more than 1 year now and in 1 or 1.5 years, the Xbox360 will be a profitable product overall.

There is no chance, that Sony will cover the losses made (and still making) in the future.

Believe me, if Sony had the chance to create the PS3 again, they would change their strategy.

If you look at this gen and you had to chose one loser, it would be Sony.

 

the xbox lost almost twice ps3 lost. yet sony as whole remained profitable until recent economy crisis (caused by USA?). xbox brand its more than 7 billions in the hole as now.

u know second place it's loosing, it doens't matter both microsoft and sony lost tons of money. at much as a gamer enjoy the games, if they win or loose money it's just fanboy talk.

No it did not. 4.2 billion. PS3 lost way more. 1.8 billion more and counting. And with the money lost with the Xbox and Xbox360, they build a whole new brand.

xbox lost  6 billions and the 360 adds over 1 - 2 billions more.

Ps3 4.7 billions.

It's 6 billion total, the original xbox lost 4.5 or something billion.

Plus the PS3 lost more than 4.7 billion, the Sony entertainment division as a whole lost 4.7 billion. The PS2 and PSP are making a profit, PS3 is not, and I think those have made more than 1.3 billion in profit these past 3 years. So Ps3 is probably over 6 billion in the hole.

He alreday formed his opinion. Don't confuse him with facts. Major Nelson even said at his podacast that they lost 4.2 billion with the Xbox. The Xbox360 is profitable for some time now and should be profitable for its entire life very soon.

I just think it is stupid to say the strategy is paying off when one single product lost more than 6 billion USD. Must have been a pretty bad strategy then.

As I said before: with the losses the Xbox made, MS entered the industry and created a new brand. I can't think of any company that creates a new console to enter this industry and is profitable right from the start.



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Xoj on 06 November 2009
DirtyP2002 said:
ph4nt said:
Xoj said:
DirtyP2002 said:
Xoj said:
DirtyP2002 said:
austin2359 said:

Sony launched with a lot of features and a very high price.  The machine was ahead of its time.  Sony preferred to keep the price high to limit losses, and wait to open itself to the mass market later with to price cuts.  Sony could afford to wait to cut the price, because its technology was so far ahead of its time that the risk of obsolesce was non-existent.  Plus if Sony took a larger loss and sold it at a competitive price, each price drop would no longer serve as an incentive to buy.  Also, there  is no way the expanded audience of casual gamers who may have bought the console at a lower launch price would buy enough games to make the price cut worth it for Sony's losses.

 

The machine has so much staying power that Sony can afford to slowly cut the price, increasing its sales in intervals and ultimately finishing ahead of its direct HD competitor.  The fact that Sony still has room to cut the price and blu-ray will only get bigger, along with its increased reliability, virtually guarantees that Sony will finish at least in second this generation.  I would give the Wii the edge over the PS3, but with its staying power, it isn't out of the question that the PS3 can close the gap at the end of 10 years.  Nintendo has built up such a large lead, that even though it lacks the staying power, I think Sony may not catch it.  But for making a HD console, Sony had the right strategy.  And Sony already had a successful standard definition console with the PS2 so making another SD console would lead to market saturation.


Okay, the PS3 is a good console, but this posts is full of fail. Sony kept the price to limit the losses... Well since the PS3 launched, the division lost 4.7 billion USD. That is quite a number. And this is limited? The losses ONLY made by the PS3 are probably around 6 billion. 4.7 reported + the profit of the PS2 and PSP for 3.5 years!

Sony MIGHT make it to 2nd place, but this won't change anything. The PS3 is a financial failure. Sure a good gaming-system, but for Sony it is a failure. Nintendo is printing money, MS is making a profit for more than 1 year now and in 1 or 1.5 years, the Xbox360 will be a profitable product overall.

There is no chance, that Sony will cover the losses made (and still making) in the future.

Believe me, if Sony had the chance to create the PS3 again, they would change their strategy.

If you look at this gen and you had to chose one loser, it would be Sony.

 

the xbox lost almost twice ps3 lost. yet sony as whole remained profitable until recent economy crisis (caused by USA?). xbox brand its more than 7 billions in the hole as now.

u know second place it's loosing, it doens't matter both microsoft and sony lost tons of money. at much as a gamer enjoy the games, if they win or loose money it's just fanboy talk.

No it did not. 4.2 billion. PS3 lost way more. 1.8 billion more and counting. And with the money lost with the Xbox and Xbox360, they build a whole new brand.

xbox lost  6 billions and the 360 adds over 1 - 2 billions more.

Ps3 4.7 billions.

It's 6 billion total, the original xbox lost 4.5 or something billion.

Plus the PS3 lost more than 4.7 billion, the Sony entertainment division as a whole lost 4.7 billion. The PS2 and PSP are making a profit, PS3 is not, and I think those have made more than 1.3 billion in profit these past 3 years. So Ps3 is probably over 6 billion in the hole.

He alreday formed his opinion. Don't confuse him with facts. Major Nelson even said at his podacast that they lost 4.2 billion with the Xbox. The Xbox360 is profitable for some time now and should be profitable for its entire life very soon.

I just think it is stupid to say the strategy is paying off when one single product lost more than 6 billion USD. Must have been a pretty bad strategy then.

As I said before: with the losses the Xbox made, MS entered the industry and created a new brand. I can't think of any company that creates a new console to enter this industry and is profitable right from the start.

both sony and nintendo did profit from the start sony even destroyed everything on their first try, again sony as a whole made money even with the ps3 looses until 2008 Q3. first in 14 years.

14 years of profits.

sony have divisions but they still are one company like microsoft, their profits are still count as one, microsoft entertaintment division lost tons of money, so this sony this gen, but that doesn't make neither console any less fun to play.



FinalEvangelion on 06 November 2009

Only Nintendo's consoles have been true Financial successes this generation.

With Sony, the main thing is that the PS4 will probably be based on PS3 tech in order to cut down on R&D costs and get close to breaking even on each unit from launch.

The one thing I see on these boards is that people don't interpret the business as a whole. Everyone always assumes all the losses for SCE is just losses on hardware. There are also other things like Sony expanding their first party and marketing. We've seen how much Sony has expanded their first party in the last 2 years and recently have put their marketing muscle in full force.



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