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Forums - Sales - whats the profit/loses for this gen of consoles

I guess from the perspective of a going concern the Xbox 360 with the probable current quarters profit is likely to have broken even. If they broke it off and sold it they would probably get at least 6 Billion dollars in a buyout if you consider the value of the brand and the overall revenue:profit ratio:price ratio.



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Microsoft 1.5 billion, lmfaooooo, Microsoft lost 7 billion on the xbox, and they make what 200-300m per year on 360? No way its 1.5 billion



Also who said PSP is just barely breaking even, you know how much Sony is making with each PSP go sold?



no1stopme said:
Also who said PSP is just barely breaking even, you know how much Sony is making with each PSP go sold?

First of all remember we are talking about total profits here, from begining (development costs before the console even launched) to current times.... and I haven't read through the whole thread but I didn't see anyone saying the X360 has made 1.5 billion PROFIT... rather that it is still at a loss (but currently making profit per quarter, so it is reducing the loss) Also the original Xbox lost more like $5 billion, bot $7 billion (though if it did lose 7bil that would mean the X360 is now above break even and has made about 0.5 billion)

The PSP was sold at a loss originally, there are also development costs to take into account for the original model as well as each subsequent model (though the Go will be the only one with significant costs to include) and the Go is hardly selling amazingly is it.... there is also the fact that most of the profits from a platform will come from the software (Even Nintendo's two consoles make more from SW than HW) and the PSP just doesn't sell software very well.

Ignoring that however, as I said in my post, if you believe the PSP has made more money than I think, then you must believe the PS3 has lost more money than I think.

Overall between the PS3 and the PSP Sony has lost somewhere between $8.5 and $9 billion. So if the PSP is currently at break even then the PS3 has lost $8.5 billion. If the PSP has made any money at all then that means the PS3 has lost more money than $8.5 billion. There is no other way around that.

Personally I think the PSP had got past break even stage and had perhaps made $0.5 billion, but the PSP Go has put them back a good deal and they are probably somewhere between $0.5 billion loss and break even.



no1stopme said:
Microsoft 1.5 billion, lmfaooooo, Microsoft lost 7 billion on the xbox, and they make what 200-300m per year on 360? No way its 1.5 billion

The reading comprehension is weak with this one.



"Man is born free but is everywhere in chains" - Rousseau

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Regardless of PSP GO's profit margin, the product itself must be losing tons of money. From a manufacturing's perspective, Sony has committed to manufacture a certain number of PSP GO for this year based on their sales forecast. Thus, a huge amount of money would have already been invested in the production lines to meet their forecast. Moreover, assuming that PSP GO is OEMed, Sony would also have committed to purchase a number of PSP GO per month or per quarter from the manufacturer, and probably all those extra PSP GO are now sitting in their warehouse at this moment. Unless of course, Sony forecasted the product to sell as poorly as it is now.



hkthui said:

Regardless of PSP GO's profit margin, the product itself must be losing tons of money. From a manufacturing's perspective, Sony has committed to manufacture a certain number of PSP GO for this year based on their sales forecast. Thus, a huge amount of money would have already been invested in the production lines to meet their forecast. Moreover, assuming that PSP GO is OEMed, Sony would also have committed to purchase a number of PSP GO per month or per quarter from the manufacturer, and probably all those extra PSP GO are now sitting in their warehouse at this moment. Unless of course, Sony forecasted the product to sell as poorly as it is now.

Which is part of the reason why I believe PSP Go brought the PSP line back into the red again.
I do think Sony will atleast have managed some kind of profit overall at the end of PSP production though, even if it turns out to be a small one (wewill nevr know for certain of course as we don't get to see what was spent on each console) PS3 meanwhile could have lost Sony almost $10 billion before it even starts to make a profit per quarter, so there is no way they will bring that back into the black even the reality is at the optimistic end of all my estimations, and everything in future goes perfectly for the PS3.