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Forums - Sony Discussion - How are Sony losing so much money on gaming?

http://www.gamesindustry.biz/articles/playstation-turns-profitable-but-sony-cuts-full-year-sales-targets

It looks like Sony Europe 'is' profitable on both hardware and software, and if I remember correctly they were the only division that 'was' profitable in 2008. So again lets use facts and not fiction.



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heruamon said:

@ Icyedge

There is no argument...since you haven't posted any links to answer the question asked, which was that the PS3 is profitable.  The CEO never made any such statement, so next please READ new sources, before you try to correct me. 

-       Howard Stringer is the CEO and Chairman of Sony, and he man who made those statements in your links is Nobuyuki Oneda, and he is the CFO. 

-       It’s interesting that Kaz Harai, who is the Head of the Networks Division, which Playstation falls under seems to think otherwise, and talked about how the Playstation ecosystem was breaking even, even if on the hardware side, it wasn’t there yet.  Of course, that was also his division posted a $654 billion loss.

-       Also, in May 2010, the before mentioned CFO said PS3 was still costing 10% more to produce, than its sales price…which at the time was $399.  3 months later, they had supposedly shaved this down for you to believe it cost them only $250 to make, which is entirely possible, I guess. http://www.andriasang.com/e/blog/2009/05/15/sony_ps3_profitability/

-       This site also has an article pointing outlining how Sony each Slim cost Sony $100 in losses, and they hope to lower the production cost thru volume.  Maybe that is why Sony placed such a huge order, but that doesn’t erase the fact of the cost as of now.  http://www.andriasang.com/e/blog/2009/08/20/ps3_losses/

So, once again, please show me a link where the CEO…errr…any Sony executive is saying that the PS3 is breaking even.  The console was cost Sony BEFORE the price, and that’s not going to change for a while.  The 360 will get another price cut next year, and Sony will have a choice of trying to get to breakeven or further financial losses to keep pace…somehow, I think M$ will be smiling either way.

Man whats your problem, seriously. Can you post the post where I say that it is profitable. I only reported the article saying about 70% less, and that it would be very unluckely to loose 50$-100$ per console and that MAYBE they are profitable now. Your arguing with me on something I never said.

 

Edit: And between your post are always negative and arguing with people when your on the sony forum. Is life really so hard?



Icyedge said:
heruamon said:

@ Icyedge

There is no argument...since you haven't posted any links to answer the question asked, which was that the PS3 is profitable.  The CEO never made any such statement, so next please READ new sources, before you try to correct me. 

-       Howard Stringer is the CEO and Chairman of Sony, and he man who made those statements in your links is Nobuyuki Oneda, and he is the CFO. 

-       It’s interesting that Kaz Harai, who is the Head of the Networks Division, which Playstation falls under seems to think otherwise, and talked about how the Playstation ecosystem was breaking even, even if on the hardware side, it wasn’t there yet.  Of course, that was also his division posted a $654 billion loss.

-       Also, in May 2010, the before mentioned CFO said PS3 was still costing 10% more to produce, than its sales price…which at the time was $399.  3 months later, they had supposedly shaved this down for you to believe it cost them only $250 to make, which is entirely possible, I guess. http://www.andriasang.com/e/blog/2009/05/15/sony_ps3_profitability/

-       This site also has an article pointing outlining how Sony each Slim cost Sony $100 in losses, and they hope to lower the production cost thru volume.  Maybe that is why Sony placed such a huge order, but that doesn’t erase the fact of the cost as of now.  http://www.andriasang.com/e/blog/2009/08/20/ps3_losses/

So, once again, please show me a link where the CEO…errr…any Sony executive is saying that the PS3 is breaking even.  The console was cost Sony BEFORE the price, and that’s not going to change for a while.  The 360 will get another price cut next year, and Sony will have a choice of trying to get to breakeven or further financial losses to keep pace…somehow, I think M$ will be smiling either way.

Man whats your problem, seriously. Can you post the post where I say that it is profitable. I only reported the article saying about 70% less, and that it would be very unluckely to loose 50$-100$ per console and that MAYBE they are profitable now. Your arguing with me on something I never said.

 

Edit: And between your post are always negative and arguing with people when your on the sony forum. Is life really so hard?

My problem...lol...you NEED to go check yourself, and re-read your postings in this thread.  Man-in-the-mirror definitely needs to be a song you're listening to here, as you've been attacking several post, because they have posted facts that don't jive with your perception of what is/isn't, regardless of facts.  So, I think you need to do some serious self checking before talking about anybody else.



"...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:
Icyedge said:
heruamon said:

@ Icyedge

There is no argument...since you haven't posted any links to answer the question asked, which was that the PS3 is profitable.  The CEO never made any such statement, so next please READ new sources, before you try to correct me. 

-       Howard Stringer is the CEO and Chairman of Sony, and he man who made those statements in your links is Nobuyuki Oneda, and he is the CFO. 

-       It’s interesting that Kaz Harai, who is the Head of the Networks Division, which Playstation falls under seems to think otherwise, and talked about how the Playstation ecosystem was breaking even, even if on the hardware side, it wasn’t there yet.  Of course, that was also his division posted a $654 billion loss.

-       Also, in May 2010, the before mentioned CFO said PS3 was still costing 10% more to produce, than its sales price…which at the time was $399.  3 months later, they had supposedly shaved this down for you to believe it cost them only $250 to make, which is entirely possible, I guess. http://www.andriasang.com/e/blog/2009/05/15/sony_ps3_profitability/

-       This site also has an article pointing outlining how Sony each Slim cost Sony $100 in losses, and they hope to lower the production cost thru volume.  Maybe that is why Sony placed such a huge order, but that doesn’t erase the fact of the cost as of now.  http://www.andriasang.com/e/blog/2009/08/20/ps3_losses/

So, once again, please show me a link where the CEO…errr…any Sony executive is saying that the PS3 is breaking even.  The console was cost Sony BEFORE the price, and that’s not going to change for a while.  The 360 will get another price cut next year, and Sony will have a choice of trying to get to breakeven or further financial losses to keep pace…somehow, I think M$ will be smiling either way.

Man whats your problem, seriously. Can you post the post where I say that it is profitable. I only reported the article saying about 70% less, and that it would be very unluckely to loose 50$-100$ per console and that MAYBE they are profitable now. Your arguing with me on something I never said.

 

Edit: And between your post are always negative and arguing with people when your on the sony forum. Is life really so hard?

My problem...lol...you NEED to go check yourself, and re-read your postings in this thread.  Man-in-the-mirror definitely needs to be a song you're listening to here, as you've been attacking several post, because they have posted facts that don't jive with your perception of what is/isn't, regardless of facts.  So, I think you need to do some serious self checking before talking about anybody else.

 

Were you able to find the post where im saying that PS3 is being profitable??? Because I wasnt. And I was also searching for the several post where I attack someone. I only found one where I dont agree on the "fact" that they loose as much as 50$-100$ per console. I should have known that there no point in talking with you. Your biase is even making you imagine post.



Icyedge said:
heruamon said:
Icyedge said:
heruamon said:

@ Icyedge

There is no argument...since you haven't posted any links to answer the question asked, which was that the PS3 is profitable.  The CEO never made any such statement, so next please READ new sources, before you try to correct me. 

-       Howard Stringer is the CEO and Chairman of Sony, and he man who made those statements in your links is Nobuyuki Oneda, and he is the CFO. 

-       It’s interesting that Kaz Harai, who is the Head of the Networks Division, which Playstation falls under seems to think otherwise, and talked about how the Playstation ecosystem was breaking even, even if on the hardware side, it wasn’t there yet.  Of course, that was also his division posted a $654 billion loss.

-       Also, in May 2010, the before mentioned CFO said PS3 was still costing 10% more to produce, than its sales price…which at the time was $399.  3 months later, they had supposedly shaved this down for you to believe it cost them only $250 to make, which is entirely possible, I guess. http://www.andriasang.com/e/blog/2009/05/15/sony_ps3_profitability/

-       This site also has an article pointing outlining how Sony each Slim cost Sony $100 in losses, and they hope to lower the production cost thru volume.  Maybe that is why Sony placed such a huge order, but that doesn’t erase the fact of the cost as of now.  http://www.andriasang.com/e/blog/2009/08/20/ps3_losses/

So, once again, please show me a link where the CEO…errr…any Sony executive is saying that the PS3 is breaking even.  The console was cost Sony BEFORE the price, and that’s not going to change for a while.  The 360 will get another price cut next year, and Sony will have a choice of trying to get to breakeven or further financial losses to keep pace…somehow, I think M$ will be smiling either way.

Man whats your problem, seriously. Can you post the post where I say that it is profitable. I only reported the article saying about 70% less, and that it would be very unluckely to loose 50$-100$ per console and that MAYBE they are profitable now. Your arguing with me on something I never said.

 

Edit: And between your post are always negative and arguing with people when your on the sony forum. Is life really so hard?

My problem...lol...you NEED to go check yourself, and re-read your postings in this thread.  Man-in-the-mirror definitely needs to be a song you're listening to here, as you've been attacking several post, because they have posted facts that don't jive with your perception of what is/isn't, regardless of facts.  So, I think you need to do some serious self checking before talking about anybody else.

 

Were you able to find the post where im saying that PS3 is being profitable??? Because I wasnt. And I was also searching for the several post where I attack someone. I only found one where I dont agree on the "fact" that they loose as much as 50$-100$ per console. I should have known that there no point in talking with you. Your biase is even making you imagine post.

Are you truly that delusional? The OP and the OP's topic is called: "How are Sony losing so much money on gaming" And look at my responses b4 you decided to attack my "biase", since I pointed out wher things currently sit, as we know it.  The most recent 6-K clearly pointed to a tough quarter...are things going to turn this quarter with exclusives games...maybe, but we don't know that at this point. 

You also said" We are not too sure about the actual amount because there was no cost confirmation ever from Sony, not even the starting manufacturing cost. But loosing 50$-100$ per console is highly unlikely. I guess that they will prolly officially reveal after the holidays that they dont sell at loss anymore."  And that Sony is probably near breakeven on the PS3...so...what did you mean?  Kaz spoke about how Playstation platform was profitable...of course that was before the price cuts for the PS2 and the PS3...so how are you getting to your conclusions?

Let's just look at the facts, and please, tell us what you think? 

 



"...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
heruamon said:
Icyedge said:
heruamon said:
Icyedge said:
heruamon said:

@ Icyedge

There is no argument...since you haven't posted any links to answer the question asked, which was that the PS3 is profitable.  The CEO never made any such statement, so next please READ new sources, before you try to correct me. 

-       Howard Stringer is the CEO and Chairman of Sony, and he man who made those statements in your links is Nobuyuki Oneda, and he is the CFO. 

-       It’s interesting that Kaz Harai, who is the Head of the Networks Division, which Playstation falls under seems to think otherwise, and talked about how the Playstation ecosystem was breaking even, even if on the hardware side, it wasn’t there yet.  Of course, that was also his division posted a $654 billion loss.

-       Also, in May 2010, the before mentioned CFO said PS3 was still costing 10% more to produce, than its sales price…which at the time was $399.  3 months later, they had supposedly shaved this down for you to believe it cost them only $250 to make, which is entirely possible, I guess. http://www.andriasang.com/e/blog/2009/05/15/sony_ps3_profitability/

-       This site also has an article pointing outlining how Sony each Slim cost Sony $100 in losses, and they hope to lower the production cost thru volume.  Maybe that is why Sony placed such a huge order, but that doesn’t erase the fact of the cost as of now.  http://www.andriasang.com/e/blog/2009/08/20/ps3_losses/

So, once again, please show me a link where the CEO…errr…any Sony executive is saying that the PS3 is breaking even.  The console was cost Sony BEFORE the price, and that’s not going to change for a while.  The 360 will get another price cut next year, and Sony will have a choice of trying to get to breakeven or further financial losses to keep pace…somehow, I think M$ will be smiling either way.

Man whats your problem, seriously. Can you post the post where I say that it is profitable. I only reported the article saying about 70% less, and that it would be very unluckely to loose 50$-100$ per console and that MAYBE they are profitable now. Your arguing with me on something I never said.

 

Edit: And between your post are always negative and arguing with people when your on the sony forum. Is life really so hard?

My problem...lol...you NEED to go check yourself, and re-read your postings in this thread.  Man-in-the-mirror definitely needs to be a song you're listening to here, as you've been attacking several post, because they have posted facts that don't jive with your perception of what is/isn't, regardless of facts.  So, I think you need to do some serious self checking before talking about anybody else.

 

Were you able to find the post where im saying that PS3 is being profitable??? Because I wasnt. And I was also searching for the several post where I attack someone. I only found one where I dont agree on the "fact" that they loose as much as 50$-100$ per console. I should have known that there no point in talking with you. Your biase is even making you imagine post.

Are you truly that delusional? The OP and the OP's topic is called: "How are Sony losing so much money on gaming" And look at my responses b4 you decided to attack my "biase", since I pointed out wher things currently sit, as we know it.  The most recent 6-K clearly pointed to a tough quarter...are things going to turn this quarter with exclusives games...maybe, but we don't know that at this point. 

You also said" We are not too sure about the actual amount because there was no cost confirmation ever from Sony, not even the starting manufacturing cost. But loosing 50$-100$ per console is highly unlikely. I guess that they will prolly officially reveal after the holidays that they dont sell at loss anymore."  And that Sony is probably near breakeven on the PS3...so...what did you mean?  Kaz spoke about how Playstation platform was profitable...of course that was before the price cuts for the PS2 and the PS3...so how are you getting to your conclusions?

Let's just look at the facts, and please, tell us what you think? 

 

 

Like I already said, my conclusion was base on the CEO statement and PS3 wikipedia page. Did you know that I was talking about manufacturing cost of the console itself? I was not talking about PS3 being profitable as a whole. Loosing 50$-100$ per console since the Slim is highly unlickely, if you go back in this thread most people are saying the same thing (I said highly unlickely because it is no rocket science and not an official announcement from sony). While my statement about revealing that they are even on manufacturing cost and selling price after the holidays was really just a guess based of what I read. My phrase did begin by I guess...  I think its really the last time I give my opinion on sales because I could care less of sales. I just wanted to post the article about the 70% cost reduction to let people know.



Icyedge said:
heruamon said:
Icyedge said:
heruamon said:
Icyedge said:
heruamon said:

@ Icyedge

There is no argument...since you haven't posted any links to answer the question asked, which was that the PS3 is profitable.  The CEO never made any such statement, so next please READ new sources, before you try to correct me. 

-       Howard Stringer is the CEO and Chairman of Sony, and he man who made those statements in your links is Nobuyuki Oneda, and he is the CFO. 

-       It’s interesting that Kaz Harai, who is the Head of the Networks Division, which Playstation falls under seems to think otherwise, and talked about how the Playstation ecosystem was breaking even, even if on the hardware side, it wasn’t there yet.  Of course, that was also his division posted a $654 billion loss.

-       Also, in May 2010, the before mentioned CFO said PS3 was still costing 10% more to produce, than its sales price…which at the time was $399.  3 months later, they had supposedly shaved this down for you to believe it cost them only $250 to make, which is entirely possible, I guess. http://www.andriasang.com/e/blog/2009/05/15/sony_ps3_profitability/

-       This site also has an article pointing outlining how Sony each Slim cost Sony $100 in losses, and they hope to lower the production cost thru volume.  Maybe that is why Sony placed such a huge order, but that doesn’t erase the fact of the cost as of now.  http://www.andriasang.com/e/blog/2009/08/20/ps3_losses/

So, once again, please show me a link where the CEO…errr…any Sony executive is saying that the PS3 is breaking even.  The console was cost Sony BEFORE the price, and that’s not going to change for a while.  The 360 will get another price cut next year, and Sony will have a choice of trying to get to breakeven or further financial losses to keep pace…somehow, I think M$ will be smiling either way.

Man whats your problem, seriously. Can you post the post where I say that it is profitable. I only reported the article saying about 70% less, and that it would be very unluckely to loose 50$-100$ per console and that MAYBE they are profitable now. Your arguing with me on something I never said.

 

Edit: And between your post are always negative and arguing with people when your on the sony forum. Is life really so hard?

My problem...lol...you NEED to go check yourself, and re-read your postings in this thread.  Man-in-the-mirror definitely needs to be a song you're listening to here, as you've been attacking several post, because they have posted facts that don't jive with your perception of what is/isn't, regardless of facts.  So, I think you need to do some serious self checking before talking about anybody else.

 

Were you able to find the post where im saying that PS3 is being profitable??? Because I wasnt. And I was also searching for the several post where I attack someone. I only found one where I dont agree on the "fact" that they loose as much as 50$-100$ per console. I should have known that there no point in talking with you. Your biase is even making you imagine post.

Are you truly that delusional? The OP and the OP's topic is called: "How are Sony losing so much money on gaming" And look at my responses b4 you decided to attack my "biase", since I pointed out wher things currently sit, as we know it.  The most recent 6-K clearly pointed to a tough quarter...are things going to turn this quarter with exclusives games...maybe, but we don't know that at this point. 

You also said" We are not too sure about the actual amount because there was no cost confirmation ever from Sony, not even the starting manufacturing cost. But loosing 50$-100$ per console is highly unlikely. I guess that they will prolly officially reveal after the holidays that they dont sell at loss anymore."  And that Sony is probably near breakeven on the PS3...so...what did you mean?  Kaz spoke about how Playstation platform was profitable...of course that was before the price cuts for the PS2 and the PS3...so how are you getting to your conclusions?

Let's just look at the facts, and please, tell us what you think? 

 

 

Like I already said, my conclusion was base on the CEO statement and PS3 wikipedia page. Did you know that I was talking about manufacturing cost of the console itself? I was not talking about PS3 being profitable as a whole. Loosing 50$-100$ per console since the Slim is highly unlickely, if you go back in this thread most people are saying the same thing (I said highly unlickely because it is no rocket science and not an official announcement from sony). While my statement about revealing that they are even on manufacturing cost and selling price after the holidays was really just a guess based of what I read. My phrase did begin by I guess...  I think its really the last time I give my opinion on sales because I could care less of sales. I just wanted to post the article about the 70% cost reduction to let people know.

The CEO, who was really the CFO...lol...whatever man.



"...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

Maybe Sony is loosing money the old fashion way. Up their nose like others who have lost fortunes.
Seriously They have a lot of R&D going on for new products including those expensive HD cameras for Hollywood that are turning NO profit as of yet. You also have to figure the amount of money spent on exclusives or timed exclusives.
R&D and Exclusives will kill your overhead.
But don't worry all Sony has to do is get Toby Maguire to do another Spiderman and they will see black for two years.



-----------------------------------------------------------------------------

AMD 550 x2 @ 3.9ghz  Gigabyte 790gp-ud4h  4gb OCZ 800 Ram  Noctua 9h-u9B  2 XFX HD 4890 @ 1ghz Crossfire  Raidmax Smilodon

Maybe Sony is loosing money the old fashion way. Up their nose like others who have lost fortunes.
Seriously They have a lot of R&D going on for new products including those expensive HD cameras for Hollywood that are turning NO profit as of yet. You also have to figure the amount of money spent on exclusives or timed exclusives.
R&D and Exclusives will kill your overhead.
But don't worry all Sony has to do is get Toby Maguire to do another Spiderman and they will see black for two years.


The PS3 is designed for ten years and it wont make Sony a profit till about year 8. 2011 the PS3 will no longer be sold at a loss but they will have to drop the price to stay competitive and the retailer is going to want their same share so still even.

The PS2 is all profit and the software is icing on the cake but....

the PSP go is bleeding money like a sliced artery because of advertising, production, and R&D
the software is Butter for Sony smart move bypassing retailer but noone is buying the GO

the old PSP was about even or a 5 dollar profit but piracy had destroyed the software money

very very rough year for Sony but they plan many years out and most of their products return a sizable profit before they see retirement. remember in the AGE of the iPod I still see people buying Sony cd players



-----------------------------------------------------------------------------

AMD 550 x2 @ 3.9ghz  Gigabyte 790gp-ud4h  4gb OCZ 800 Ram  Noctua 9h-u9B  2 XFX HD 4890 @ 1ghz Crossfire  Raidmax Smilodon

I thought that I would post a link to Sony's 2009 annual report
http://www.sony.net/SonyInfo/IR/financial/ar/8ido180000023g2o-att/SonyAR09-E.pdf



@TheVoxelman on twitter

Check out my hype threads: Cyberpunk, and The Witcher 3!