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

Right now no one knows but the higher ups at Sony what the slim costs, and apparently they don't feel the need to release the information to us. Those bastards!!! With that said I would guesstimate that the loss would come between $30-$55.

To you guys who think that prices will continue to drop "weekly and monthly" I have to laugh at that idea to be honest. If that was the case we would be paying less and less for anything that comes off of an assembly line.

The simple fact is that yes after a while you can drop the price of making a product down. But eventually your going to reach a level that there is simply no way your going to cut the price anymore. And like I said above, no one really knows this but Sony themselves. I am not trying to say that Sony will never be profitable with the PS3 but sometimes you have to just be honest with yourself and admit that there is a bottom line price point. This goes for everything that is made, not just electronics or "cakes".



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letsdance said:
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.

"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."

THAT is what i said...And instead of assuming you knew what qtrs I was talking about, you should have asked.  BTW, using last year as an indicator of how this year is going to play out in riddiculous.



"...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

damndl0ser said:
Right now no one knows but the higher ups at Sony what the slim costs, and apparently they don't feel the need to release the information to us. Those bastards!!! With that said I would guesstimate that the loss would come between $30-$55.

To you guys who think that prices will continue to drop "weekly and monthly" I have to laugh at that idea to be honest. If that was the case we would be paying less and less for anything that comes off of an assembly line.

The simple fact is that yes after a while you can drop the price of making a product down. But eventually your going to reach a level that there is simply no way your going to cut the price anymore. And like I said above, no one really knows this but Sony themselves. I am not trying to say that Sony will never be profitable with the PS3 but sometimes you have to just be honest with yourself and admit that there is a bottom line price point. This goes for everything that is made, not just electronics or "cakes".

WHAT...of course Sony can drop cost on a by-minute basis...it's the power of the cellz.



"...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

heruamon said:
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...

Please extract the portion of MY source that contradicts me. And no they posted Sony's gaming division loss not too long ago, it was in billions of yen, once convered to dollars it was roughly half a million.



dsgrue3 said:
heruamon said:
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...

Please extract the portion of MY source that contradicts me. And no they posted Sony's gaming division loss not too long ago, it was in billions of yen, once convered to dollars it was roughly half a million.

Yeah...I posted there 6-K information...you know...the official document posted to the Securities Exchange Commision, which shows that in the division that PS3 falls under, they posted a loss of $654 million when covered at the time of the report.  But jsut incase you missed it, here is a re-post of my post on page 5 of this VERY thread:

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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dsgrue3 said:
heruamon said:
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...

Please extract the portion of MY source that contradicts me. And no they posted Sony's gaming division loss not too long ago, it was in billions of yen, once convered to dollars it was roughly half a million.

Your ignorance astounds me.



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:
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...

Please extract the portion of MY source that contradicts me. And no they posted Sony's gaming division loss not too long ago, it was in billions of yen, once convered to dollars it was roughly half a million.

Your ignorance astounds me.

I also found that pretty hilarious.



The problem with Sony's promises of profitability is that they've been making them for several years, and they never materialize.

Don't get me wrong, I do believe they're close to profitability in terms of hardware. But if they have to cut the price again any time soon, the mirage will move a bit farther once again.



My Mario Kart Wii friend code: 2707-1866-0957

heruamon said:

.. Viao is profitable,

This one is wrong with absolute certainty. It probably accounts for a big part of the $650M losses. Had you watched what was going on in the laptop business ,you would have noticed a dramatic price decline in that area (particularly when those "mini-laptops" hit the shelves in drones ). At some point, Sony laptops were for the most part several hundred $ more expensive than all the other comparable laptops and were basically no longer selling at all (at least in central Europe). By the end of the quarter, prices were finally down to competitor's prices. If we assume that 1-2Mio laptops were blocking shelve space, this alone would account for most of the losses reported in the division (assuming pricing adjustments were world-wide).



Another factor is that the PS2 and PSP sales have dropped considerably. So even if the PS3 gets closer to profits, it will have to be offset against the reduced profits of the PS2 and PSP.



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.