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Forums - Sony - How much is Sony losing per PS3?

dsgrue3 said:
heruamon said:
LOL...on fantasy island, Sony is making boatloads of money off each PS3 sold...in reality, we will see in a few months jsut how bad it is...if last quarter was any indication...Sony might end up losing over $1 bln in 2 quarters.

How do you figure when they project a billion dollar loss for the FULL year? Quit spreading blatant lies. I hope they ban you.

 

Source

Perhaps you need to READ what I actually posted, and not what you want to "read".  Sony itself is projecting an annual loss of $1 billion for the entire company, so are you saying that you're now projecting that “Network and Product Services” is going to post a profit?  Are you suggesting that in this October thru December quarter that they are going to swing to profitability?  I’ll stick with the facts, which many seems to have to discuss:

“Sales decreased 24.2% year-on-year (a 13% decrease on a local currency basis) to ¥352.6 billion ($3,918 million).  This decrease was mainly due to lower VAIOTM PC and game sales.

Sales in the game business decreased year-on-year primarily as a result of the impact of the appreciation of the yen as well as a decrease in unit sales of PlayStation®2 (“PS2”) hardware and software.  Due to the launch of a new model, approximately 3.2 million units of PlayStation®3 hardware were sold in the second quarter of the current fiscal year compared to approximately 2.4 million units in the same quarter of the prior fiscal year.  Approximately 3.0 million PSP® (PlayStation Portable) (“PSP”) units were sold in the current quarter, compared to approximately 3.2 million units in the prior year’s second quarter.  Approximately 1.9 million PS2 units were sold in the current quarter, compared to approximately 2.5 million units in the prior year’s second quarter.  VAIO PC sales decreased due to a decline in unit selling prices, a decrease in unit sales and the impact of the appreciation of the yen.

An operating loss of ¥58.8 billion ($654 million) was recorded, a deterioration of ¥18.2 billion year-on-year, mainly due to a deterioration in profitability in VAIO PCs and the game business.

In the game business, the deterioration in profitability was mainly due to a decrease in PS2 hardware and software unit sales, and the impact of the appreciation of the yen.  The deterioration in profitability for VAIO PCs was due to the reasons noted above that contributed to lower sales.”

Networks and Product services posted a $654 million loss this past quarter.  In analyzing the major drivers of this division, they are PC sales and Games Consoles and associated software.  Perhaps before shooting your mouth about how I’m flaming Sony’s business model, you should READ financial statements and see what’s reported first.  PS2 is profitable, Viao is profitable, PSP is profitable (or it was before Go), and we've being led to believe that PSN is breaking even....sooo what does process of elimination tell you?



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

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Probably not all that much anymore. Sony has said that they aren't making a profit per PS3 yet, but that they expect to turn it around sometime in 2010.



Complexity is not depth. Machismo is not maturity. Obsession is not dedication. Tedium is not challenge. Support gaming: support the Wii.

Be the ultimate ninja! Play Billy Vs. SNAKEMAN today! Poisson Village welcomes new players.

What do I hate about modern gaming? I hate tedium replacing challenge, complexity replacing depth, and domination replacing entertainment. I hate the outsourcing of mechanics to physics textbooks, art direction to photocopiers, and story to cheap Hollywood screenwriters. I hate the confusion of obsession with dedication, style with substance, new with gimmicky, old with obsolete, new with evolutionary, and old with time-tested.
There is much to hate about modern gaming. That is why I support the Wii.

I don't think we'll have a very good idea until Q4. Q3 will skew the financials.



dsgrue3 said:
heruamon said:
LOL...on fantasy island, Sony is making boatloads of money off each PS3 sold...in reality, we will see in a few months jsut how bad it is...if last quarter was any indication...Sony might end up losing over $1 bln in 2 quarters.

How do you figure when they project a billion dollar loss for the FULL year? Quit spreading blatant lies. I hope they ban you.

 

Source

Have you actually looked at the numbers from Sony's financial reports? The network division which includes Playstation has already lost a billion dollars in six months.



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.

Grimes said:
dsgrue3 said:
heruamon said:
LOL...on fantasy island, Sony is making boatloads of money off each PS3 sold...in reality, we will see in a few months jsut how bad it is...if last quarter was any indication...Sony might end up losing over $1 bln in 2 quarters.

How do you figure when they project a billion dollar loss for the FULL year? Quit spreading blatant lies. I hope they ban you.

 

Source

Have you actually looked at the numbers from Sony's financial reports? The network division which includes Playstation has already lost a billion dollars in six months.

LOL...I found that to be funny as well...he posted a source to contradict his comments...just amazing...



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

Around the Network

It contradicts him if they make money Q3 and Q4?



Don't forget about shipping and currency fluctuations that also determine how much you are making/losing on each console.

Right now:
300 GBP = ~44,000 Yen
300 USD = ~26,500 Yen
300 EUR = ~39.700 Yen

Sony doesn't make the same amount of money on each console sold throughout the world. Also, there are shipping costs which can fluctuate with the price of oil and other factors. Finally, we must set aside money for defect consoles, warranty costs, bribes to officials, etc.



kitler53 said:
leo-j said:
pastro243 said:
rafichamp said:
Sony has stated the more they sell the more they make in profit due to manufacturing costs being reduced tremendously


This may be true, in mass production the more you produce you can reduce the costs, I dont remember the explanaition though.

neither do I but its something I leanred in economics

when you make a cake you need two types of things: the ingredients -  like flour and sugar, and the equipment - like a mixer.

the total cost to produce a cake is the cost of the ingredients AND the total cost of the equipment divided by the number of cakes produced.

if you make 1 cake then to be profitable that one cake must account for the total cost of the mixer.

if you make 1 million cakes then each cake must account for one millionth the cost of the mixer thus each cake is cheaper to make.

The cake is a lie



letsdance said:
It contradicts him if they make money Q3 and Q4?

LOL...perhaps you need to READ my post as well...and then you'll see what you're saying makes no sense.



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

Youre saying they are going to lose 1billion dollars in Q3 and Q4... even though last year Q3 they made a profit while losing more.