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Forums - Sony Discussion - How will the PS3 do in 2008 when its "big guns" (GT5, MGS, etc.) come out?

SlorgNet said:
HappySqurriel said:

I believe it was SCE's president who recently claimed that they were still losing money on the PS3 but he wouldn't elaborate on how much ... Being that Sony recently announced that their year end losses may be (much) worse than initially forcast I would suspect that they're losing a lot of money per console; being that they've lost nearly $1 Billion on the first half of fiscal 2008 and claim their losses may double by the end of the year I suspect that they're still losing quite a lot per console.

http://www.vgchartz.com/news/news.php?id=602

Now, do you have any information that implies Sony is turing a profit on the sales of PS3 systems?


I'm not a Sony employee and have no special access to their data, I'm just relying on industry averages (30% is the ballpark figure for annual cost-reductions in electronics), news reports about BluRay in the reputable branches of the silicon press, and I'm assuming iSupply's original estimate was accurate. The PS3 will continue to lose money for awhile, sure, because manufacturing costs are only part of total costs - there's servicing, transport, advertising, etc.

But $2 billion in total losses wouldn't surprise me, and it doesn't mean Sony is doomed. Microsoft lost $1.5 billion launching the 360, which had fewer features than the PS3 and thus cost less to manufacture, so minus $2 billion is pretty much where Sony ought to be. It's not a problem for Sony. Their game division's loss is BluRay/Bravia's gain. They make their money elsewhere; they were pursuing an integrated media strategy from the beginning.


 

I think I'll trust the word of Sony's second highest ranking officer who said in their most recent earnings call that Sony might break even with PS3 hardware in 2008. If you want to believe some random cobbled info from iSuppli or wherever over Sony's own statements, I guess that's your choice.

I hate to break it to you but the losses in the game division over 1.5 years is like $3.4 billion and still growing. The losses would be even greater if the PS2 hadn't been pulling in significant profit during that period. If you subtract the PS2 profits, the losses of the PS3 are probably well over $5 billion.

Blu-ray is a loooooong way from making any kind of profit. And the recent events in HD-DVD pricing will guarantee and even longer protracted battle. The only division of Sony that is really making big gains in profit is digital cameras, and that has practically zero to do with the PS3.



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It'll do better, simply to answer the question.

But guys come on there's more to sales than simply big games and price. I've found through my studies of the market that really it has to do a lot with who has the most popular brandname.

For instant last generation there's no denying that Xbox and GC had their big games such as Sunshine, Wind Waker, Metroid Prime, Halo, Fable, ect. But why didn't these games turn around the market. I mean hell GC was even cheaper than PS2 for the entire generation. Why didn't the GC when it got games start affecting the PS2?

The reason is just cause you have a mass market price and amazing games it doesn't mean you'll sell better than the competition. The PS2 had a mass market price, games, and the most important one the most popular brandname. Because it had the popular brandname it was like to the majority of the consumers they didn't even know that an Xbox or GC existed.

So now we look at this generation who has those. Well obviously only Wii has mass market price. All have their good games periodically but not in masses. But who has the brandname. Well in Japan its apparent that Wii has a very dominant brandname even if it is lower on sales at this point. In Europe well just look at the sales. Wii is only struggling badly in Italy. Everywhere else it either has the best sales or enough to stop a complete shutout. But in the UK, France, and Germany I think its easy to say that Wii has about complete control, especially Japan. It's apparent in the majority of the Europe/Other market Wii has a dominant brandname control, even during the times of Halo 3 and PS3 new SKU's and pricedrops.

So does that sound familiar? Of course it does. PS2 had times where the comp had pricedrops and big games but it wasn't affected where the comp knocked it down. Same principle here is Wii has been able to survive a long summer and with flying colors. So now what makes us think that Wii won't be able to survive 2008, especially with games such as Wii Fit, SSBB, Animal Crossing, and Mario Kart coming out as well to counter any big game PS3 releases. Not to mention most likely a pricedrop of its own at the end of the year and of course Wiiware releasing in March.

I think PS3 will do better but I think Wii has too much brandname dominance right now along with the other 2, price and games, for it to be brought down at least in the way some would describe. So it's going to be a great year for Wii and a better year for PS3 and a not so great one for 360.



The PS3'S futre seems to be certain, it currently beating the 360 out side America, and the big "guns" might make a big change . consider that the PS won the last 2 generation, ppl shot each other for a PS3, and when the PS3's price went down by a hundred the sales skyrocketed, the PS3 has the largest momentum of all 3, It is a mixture of both wii and 360, it has lots of feature it is hi-def, it can be used as a party console with singstar and ps eye.  If the sales continue like this, and they beat the 360 in Amerca, by the end of next year, they might be in par and by the Q2 of 2009 PS3 takes lead. At the end of the generation, i guess it is going to be a head on head race between PS3 and Wii, if games come running and The price falls, the sales are going to beat the Wii, now the PS3 has no Blockbuster title except Resistance and Racht and Clank, and the sales are still beating the 360 out side America, and with games and the 40GB released in America during Chrismas u can expect the total sales of the PS3 to be 7-8 mills.



Darthefe2 said:
The PS3'S futre seems to be certain, it currently beating the 360 out side America, and the big "guns" might make a big change . consider that the PS won the last 2 generation, ppl shot each other for a PS3, and when the PS3's price went down by a hundred the sales skyrocketed, the PS3 has the largest momentum of all 3, It is a mixture of both wii and 360, it has lots of feature it is hi-def, it can be used as a party console with singstar and ps eye. If the sales continue like this, and they beat the 360 in Amerca, by the end of next year, they might be in par and by the Q2 of 2009 PS3 takes lead. At the end of the generation, i guess it is going to be a head on head race between PS3 and Wii, if games come running and The price falls, the sales are going to beat the Wii, now the PS3 has no Blockbuster title except Resistance and Racht and Clank, and the sales are still beating the 360 out side America, and with games and the 40GB released in America during Chrismas u can expect the total sales of the PS3 to be 7-8 mills.

If the PS3 has such great momentum and outselling the 360 so badly outside of America, why is the PS3's worldwide sales being beat weekly by 360's American sales only? 



Zucas, how can you say its going to be a great year for sony and not the 360? What would lead you to believe that the PS3 is magically going to start dominating the market, while everyone stops buying MS's machine? I cant possible understand what would lead you to that conclusion?!?!



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white devil said:

If the PS3 has such great momentum and outselling the 360 so badly outside of America, why is the PS3's worldwide sales being beat weekly by 360's American sales only?


Because the US sales increase seems to be a temporary spike limited to the Halo launch, not a yearlong condition. Sales of the 360 are going back to normal holiday levels, while PS3 sales are now starting to climb significantly in Japan and the EU, even before the major software releases and the cheaper PS3. That's a worrisome sign that Microsoft has failed to branch out of its core market, American FPS gamers.



This is the way I see it. There behind now and they lost a lot of exclusives, just like the N64.

The following years the N64 had arguable some of the greatest games in history (Goldeneye, Ocarina of Time, Mario Kart 64, Banjo Kazooie, Perfect Dark) and they did nothing to help Nintendo.

Frankly if Goldeneye and Ocarina of Time can't save a sinking system... nothing can.



HappySqurriel said:
SlorgNet said:
Lost tears of Kain said:

The console with a 20-gigabyte hard drive costs $805.85 to make and sells for $499 at the register, for a loss of $306.85, according to iSuppli.

The higher-end 60 GB unit, with built-in Wi-Fi and other amenities, does slightly better, with a loss of $241.55, stemming from production costs of $830.25 against a $599 pricetag.

So right now, sony is losing ALOT of money on those two consoles, and im sure the 40G is not much better


ISupply's estimate was issued in November, 2006 and referred to launch hardware only. I'm talking about hardware manufactured right now. Electronics hardware drops in price constantly - typically, about 30% a year. The costs of BluRay have dropped even more (the Taiwanese manufacturers have said, in various places on the Web, that the original $125 for the diode has dropped way, way down, by at least a hundred dollars).


I believe it was SCE's president who recently claimed that they were still losing money on the PS3 but he wouldn't elaborate on how much ... Being that Sony recently announced that their year end losses may be (much) worse than initially forcast I would suspect that they're losing a lot of money per console; being that they've lost nearly $1 Billion on the first half of fiscal 2008 and claim their losses may double by the end of the year I suspect that they're still losing quite a lot per console.

http://www.vgchartz.com/news/news.php?id=602

Now, do you have any information that implies Sony is turing a profit on the sales of PS3 systems?


Happy hit it but ill mention this.

I mentioned that because, yes its old info, but Sony has ALSO dropped the price quite a few times. So on the 60g your telling me they cut the production by 400 bucks?



                 With regard to Call of Duty 4 having an ultra short single player campaign, I guess it may well have been due to the size limitations of DVD on the XBox 360, one of various limitations multi-platform game designers will have to take into consideration-Mike B   

Proud supporter of all 3 console companys

Proud owner of 360wii and DS/psp              

Game trailers-Halo 3 only dissapointed the people who wanted to be dissapointed.

Bet with Harvey Birdman that Lost Odyssey will sell more then Blue dragon did.

I don't think Devil May Cry is a system-seller



SlorgNet said:
HappySqurriel said:

I believe it was SCE's president who recently claimed that they were still losing money on the PS3 but he wouldn't elaborate on how much ... Being that Sony recently announced that their year end losses may be (much) worse than initially forcast I would suspect that they're losing a lot of money per console; being that they've lost nearly $1 Billion on the first half of fiscal 2008 and claim their losses may double by the end of the year I suspect that they're still losing quite a lot per console.

http://www.vgchartz.com/news/news.php?id=602

Now, do you have any information that implies Sony is turing a profit on the sales of PS3 systems?


I'm not a Sony employee and have no special access to their data, I'm just relying on industry averages (30% is the ballpark figure for annual cost-reductions in electronics), news reports about BluRay in the reputable branches of the silicon press, and I'm assuming iSupply's original estimate was accurate. The PS3 will continue to lose money for awhile, sure, because manufacturing costs are only part of total costs - there's servicing, transport, advertising, etc.

But $2 billion in total losses wouldn't surprise me, and it doesn't mean Sony is doomed. Microsoft lost $1.5 billion launching the 360, which had fewer features than the PS3 and thus cost less to manufacture, so minus $2 billion is pretty much where Sony ought to be. It's not a problem for Sony. Their game division's loss is BluRay/Bravia's gain. They make their money elsewhere; they were pursuing an integrated media strategy from the beginning. 


30% yes then you would be right, but sony has also done quite a few price drops.

Well with sony loses people are very much more afraid. MS is ALOT bigger then Sony as a company, so it can take the losses. Sony on the other hand is very big, but ps3 cost almost cut profits in half for sony, and thats not pleasing any stock holders. If Blue ray wins this, then sony will pull out just fine, and do exactly what they wanted. If not, id be worried. Sony would still live but it would be dealt a very powerful blow



                 With regard to Call of Duty 4 having an ultra short single player campaign, I guess it may well have been due to the size limitations of DVD on the XBox 360, one of various limitations multi-platform game designers will have to take into consideration-Mike B   

Proud supporter of all 3 console companys

Proud owner of 360wii and DS/psp              

Game trailers-Halo 3 only dissapointed the people who wanted to be dissapointed.

Bet with Harvey Birdman that Lost Odyssey will sell more then Blue dragon did.