nord,
like I said, the ps1 and ps2 were just steps.
Do you remember when Ken Kutaragi said he had like 7 generations of PS planned out already?
They've been on this from day one.
Sure they ended up disrupting other things as well, but I didn't want to create a Malstrom-length article either.
And console games never synced up with pc games until the ps1/n64 generation. Both were capable of giving very similar graphics and ability whereas previously, console games were very limited.

To summarise: you make some good points, but I could eventually show how my OP is just a simplified version of what you said. I just didn't want any tl;drs

I would like to know what Sony has in the Bank and how much of a hit they can afford to take this Gen, they must have loads of PS2 cash sitting around and some cash from the PS1 too I assume.

What money does the PS division get from Sony?

based on that we gould take a guess at how much PS3 development was, how much they can afford to lose, we could do with the definitive manufactuing costs, it may cost $800 to make a PS3, but if they buy in bulk they could have a much better deal than that.

I would also like to know what they are saving on the PS3 slim and what their profit margins are on software sales, without knowing this we cannot know what Sony real financial position is.

P.S. I wonder what MS lose on RRoD

They burnt every dime they ever earned on the PS1 and PS2 on the PS3.

On what?

Do you have any proof, evidence?

If there is no evidence, then it is not a fact and therefore you are wrong :)

Always remember to link.

And I found your previous comment to also be very lacking in substance, you basically took a reasonably valid statement and attacked it despite it only being a theory, nobody is trying to claim factual superiority here save for yourself!

Hello everyone,

This is just going to be a brief intro to the Sony strategy, so that people can understand the approach and use the ideas herein to better predict things like next gen capabilities, direction, and reasoning behind decisions.

The Intro:

A lot of members on this site talk about Nintendo's disruption strategy, as highlighted by Malstrom in several really great articles (for the most part he doesn't know much about video game business, but he knows a lot about business in general).

What a lot of people don't realize is that disruption is real, and has been going on for years, back to the NES days. When we look at the wii, as far as disruption goes, we can see a striking similarity. The wii sells similarly to the ps1 and ps2. This is because Sony, like Nintendo, uses disruption. So, "Why", you may ask, "is the ps3 not selling very well". It is because of the 360 and MS, and to a lesser extent, vastly cheaper computers/laptops.

The Sony strategy, of course, is to disrupt the PC market. Granted, the PC market is still thriving and growing, but the ps1 and ps2, were the first systems that allowed PC gamers to realize that console graphics and price difference could really rival PC systems. Back then, computers frequently ran over 1000$ and had a lot of restrictions. You needed specific requirements for each game, and parts pricing was nothing to laugh at, like they are today. Consoles, on the other hand, didn't need upgrades, except from one gen to another, and usually the cost of a system was the price of a new videocard. Quite a value, right?

You will begin to notice that Sony is in the practice of disruption from here onwards as you read about their decisions.

The evidence:

PS1 was one of the first consoles to allow for cd-music playing. This first move targeted stereo systems and gave users a way to start working with media.

PS2 began DVD playback. This targeted home DVD players.

While these seem more like Sony is targeting livingroom disruption, don't be confused. It may seem like these options actually bolstered the computer through cd and dvd burning. But these were only the first steps. Let's continue.

PSX came out shortly after the ps2, with CD and DVD burning capability! While the PSX didn't sell gangbusters, it is considered the basis for the future of Playstation. It introduced the XMB media crossbar, that would later appear on the PSP, PS3, and bravia tvs.

PS3 then released with several unique characteristics. It supported online and web browsing, required special programming, and played BluRay. You may ask, "where is the media-burning hardware, though". Well, while media burning is still important in the world, the general public doesn't use it like they used to. No longer are people burning cds for music, and while people do still burn dvds for movies and pictures, thumb drives and memory cards will replace it soon enough.

Going Forward:

After reading this, I hope you will see Sony in a new light, and I hope it will spark interest in critically analyzing everyone's favorite company .

In the future, Sony will be targeting the PC more and more, just as 360 will be reinforcing the PC.

Looking at the future, we can see some trends.

• motion/touch control
• Digital Distribution
• streaming video
• P2P
• Social networking
• internet use
• Reusable/portable media
• Huge harddrives

Expect the ps4/psp2 to use some, if not all of these.

If you enjoyed this thread, let me know. If you did not enjoy this thread, please do not post "fail" or any pictures, they will be reported. If you would like to debate or discuss, please do so appropriately.

On what?

Do you have any proof, evidence?

If there is no evidence, then it is not a fact and therefore you are wrong :)

Always remember to link.

And I found your previous comment to also be very lacking in substance, you basically took a reasonably valid statement and attacked it despite it only being a theory, nobody is trying to claim factual superiority here save for yourself!