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Forums - Sony - PS3 Strategy is Starting to Pay Off

ironman said:
numonex said:
Sony has no real strategy in regards to the PS3.

A $5 billion dollar loss on the PS3 since its launch and rising. Market share falling from above 75% to below 25% - more than 50% fall in total market share from last generation. Sony's game division made $600 million loss in the last financial quarter. Celebrating this as a success. I am lost for words. Microsoft on the other hand made a $300 million profit in the last financial quarter.

There has been no real evidence to indicate whether the PS3 Slim is actually selling for a profit or loss. If it is selling for a loss it would be further increasing the losses made on the PS3 since its launch.

The PS3 has to last for 10 years because it would take about that time for the PS3 hardware losses to be completely erased.

PS3 is on track now according to Sony fans that it will eventually outsell the XBox 360 in total sales. But at what cost? Who really cares? Anyway the Wii will have doubled the sales of the PS3. PS3 will finish second in console sales numbers. PS3 will finish last in profitability for this generation.

...yes, Sony does have a strategy. Their first one failed, and they are now using a sane one, however it could be too late. Suffice to say, If given the chance to go back, I think tthey would use a differant strategy altogether...and then this gen would be very differant.

Yeah they would have copied the Wii from day one



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

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ironman said:
austin2359 said:

blu-ray also is one aspect that gives ps3 a tech edge over the 360 not just for movies, but for the actual games.

I couldn't agree with you more. Sony won the format war, partly because of the PS3, but it's also part of the reason why the PS3 was so high priced, and didn't sell as well as it's predicesors. For all intents and purposes, Bluray actually hurt the PS3.

PS3 was expensive because it quality and packs everything in. PS2 also have DVD it have more expensive due that than the GC games were bigger and so games like god of war were created.

the ps3 as a whole everything was expensive, from the XDR rambus ram the cpu custom design (at first), all ps3 have a HDD, it packed bluetooth and wifi, both things 360 LACKS.

blu ray was just logical it was a technology they had since 2003 in japan, it allow bigger games and remove the need for extras disc and give ability to the ps3 to play HD movies.

sony did everything they had to stay afloat like microsoft failed quality control and 1 billion+ rrod control, or draining 6 billion on the original xbox.



Of course, this was anticipated.



Naughty Dog: "At Naughty Dog, we're pretty sure we should be able to see leaps between games on the PS3 that are even bigger than they were on the PS2."

PS3 vs 360 sales

Xoj said:
ironman said:
austin2359 said:

blu-ray also is one aspect that gives ps3 a tech edge over the 360 not just for movies, but for the actual games.

I couldn't agree with you more. Sony won the format war, partly because of the PS3, but it's also part of the reason why the PS3 was so high priced, and didn't sell as well as it's predicesors. For all intents and purposes, Bluray actually hurt the PS3.

PS3 was expensive because it quality and packs everything in. PS2 also have DVD it have more expensive due that than the GC games were bigger and so games like god of war were created.

the ps3 as a whole everything was expensive, from the XDR rambus ram the cpu custom design (at first), all ps3 have a HDD, it packed bluetooth and wifi, both things 360 LACKS.

blu ray was just logical it was a technology they had since 2003 in japan, it allow bigger games and remove the need for extras disc and give ability to the ps3 to play HD movies.

sony did everything they had to stay afloat like microsoft failed quality control and 1 billion+ rrod control, or draining 6 billion on the original xbox.

I don't think you're looking at his from the right perspective at all.  The goal is to make money and gain market share.  The goal is not to make the most powerful system.  PS1 was not as powerful as n64 or other consoles except saturn in some ways, the ps2 was the weakest and these 2 systems made Sony a fortune.  The xbox had a bunch of exclusives that looked way better than ps2 games, but it didn't mean anything.  All Sony had to do was release a system for $300 or $400 and they would have crushed MS and at least been competitive with Nintendo, but they didn't. 



currently playing: Skyward Sword, Mario Sunshine, Xenoblade Chronicles X

@ johnsobas

I don't think you're looking at his from the right perspective at all. The goal is to make money and gain market share. The goal is not to make the most powerful system.


There were conflicting interests. Ken's development team certainly wanted to create something special. Sony management probably wanted to see the PS3 becoming profitable much sooner.

Years before the PS3 launched it was already clear they took a bold direction and Sony would need to invest deeply into this project.

From a consumer perspective the PS3 provides amazing technology for its pricing and it's gonna take Sony as a company many years to recover their investments.



Naughty Dog: "At Naughty Dog, we're pretty sure we should be able to see leaps between games on the PS3 that are even bigger than they were on the PS2."

PS3 vs 360 sales

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lol @ the 10 year lifespan.

2011 we'll see the PS4 and PS3 will be discontinued in 2012.... in third place.

MS and Nintendo will be launching then as well, so Sony will have no choice but to release PS4 and having a non-market dominating machine will guarantee PS3s immediate closure.

Only Wii has a chance to sell for a few years after Wii2/HD/+ releases.



Gilgamesh said:

10 year plan baby!

Sony didn't get where they are by being idiots, they knew what they were doing. They have the 10 year plan why would they want to offer everything they have to everyone in the first couple years, there slowly taking over.

Correction: The PS3 makes them look like idiots, but everything else doesn't.



Tease.

NJ5 said:
austin2359 said:
At the end of 10 years I think Sony will make a profit if you consider blu-ray's victory and software.

This has come up before... I don't have the links at hand now, but if I remember correctly Sony would have to sell an insane amount of BR discs to every single human being in developed countries to even come close to recouping PS3's losses.

The royalties on movie discs are actually not high at all... nothing compared to game software. And even with game software, the PS3 has already lost more money than the PS2 made in profit.

In short, it's not gonna happen.

 

Surely you realize that BR royalties on movie discs are merely a part of the overall increased profitability that will be obtained by the introduction/victory of Blu-Ray.. Do you not? 



Rpruett said:
NJ5 said:
austin2359 said:
At the end of 10 years I think Sony will make a profit if you consider blu-ray's victory and software.

This has come up before... I don't have the links at hand now, but if I remember correctly Sony would have to sell an insane amount of BR discs to every single human being in developed countries to even come close to recouping PS3's losses.

The royalties on movie discs are actually not high at all... nothing compared to game software. And even with game software, the PS3 has already lost more money than the PS2 made in profit.

In short, it's not gonna happen.

 

Surely you realize that BR royalties on movie discs are merely a part of the overall increased profitability that will be obtained by the introduction/victory of Blu-Ray.. Do you not? 

Panasonic control much of the royalties from producing the players. Sonys come from the disc production process and they haven't yet made a cent. The recent financials showed a loss of $14M from that division.



Tease.

superchunk said:
lol @ the 10 year lifespan.

2011 we'll see the PS4 and PS3 will be discontinued in 2012.... in third place.

MS and Nintendo will be launching then as well, so Sony will have no choice but to release PS4 and having a non-market dominating machine will guarantee PS3s immediate closure.

Only Wii has a chance to sell for a few years after Wii2/HD/+ releases.

You know what your right they will stop supporting the ps3 when ps4 and other next gen gets released they won't have any choice but to release ps4 like what they did this gen....I mean they stoped supporting the ps2 when ps3 released in fact they just forgot about the ps2 now it's 9 years old and still in the market.