Well, if you look at the Japanese software charts, the PS2 is pretty much over with in Japan.

Around the globe, it only sells licensed games and the yearly sports entries. Next March will show very low software sales for the platform. However, it will still net some profit.

uh, why did u bring the ps2 into the picture?

So I take it you're just completely ignoring the earlier post that showed the 360 and Wii have much worse software attach rate issues (especially the 360, which actually decreased in sales from last year despite more hardware sold)?

Posted by yakuzaice earlier

Wii 2008: 66,758,799
Wii 2009: 70,406,200
5.5% increase

360 2008: 48,978,109
360 2009: 47,300,962
3.4% decrease

It's pretty obvious the economy has played a role in the tepid software sales this year.  I'll check hardware increases in a second.

Wii: 48.95% increase in HW base over the last year.

360: 39.2% increase

So your point is that if software sales start to go badly in a short amount of time, Sony is in trouble because they will not be able to recover from past losses on the hardware. I think everybody will agree with that. But that's not how the thread was presented.

My point is: how that is supposed to derive by the numbers you tabulated.

We don't know when the hardware peak will be for the PS3 yet, nor how the software sales will fare in the following years.

You presented software sales increase for NA in Q4 versus total install base increase. I'd like you to address that: how does that support your thesis?

Sony's strategy is always selling hardware at a loss, but relying on software to bring profitability to the products.

I suppose we all agree that Sony is selling the PS3 Slim at a loss. Since PS3 sales has improved a lot lately, it is logical to assume that Sony is losing more money than before. To compensate for this loss due to increased hardware sale, the software will probably have to sell a lot more. However, at this moment, the software growth is lot slower than hardware growth, which is normal. In fact, we may be not see software catching up to the install base in another few months to a year at the very least. Thus, before that happens, the PS3 product line will most likely stay in the red.

This, couple with the failure of PSP Go and declining hardware / software sales of PS2 and PSP, will probably create huge quarterly loss for Sony, at least until Sony can bring the PS3 production cost further down, or PS3 software sales catches up to its install base.

The software sales increase of Wii / XBOX360 relatively to their hardware sales is irrelevant, as Nintendo and Microsoft are already making money from their hardware. Sony, on the other hand, has a completely different business model.

just wrong

I think OP brings up a good point.

While increased PS3 Slim sales may seem to have turned the tide in the Console War, it may turn out to be a bad business decision if Sony cannot recoupe the extra loss due to improved hardware sales. This is especially true if video game software growth stagnates due to the poor economy, as can be seen by the Wii / XBOX data.

Sony may very well be better off by selling PS3 at break-even than selling it at a loss, even though the latter will sell more units.

You come back from a ban to post yet another negative thread about the PS3, how refreshing.

This guy is a one trick pony.

Shovel through his recent posts and most of them in some way mentions Sony's "profit", regardless of the topic.
He tries to get this in every chance he gets, until he eventually stars a thread about it.

PS3 is trouncing his beloved and with no other angle of attack he resorts to their financial situation, as if no other company in the world is suffering from the recession.

A company (Sony) whose economic resources are up 230billion in 2009 which is 3x bigger than Microsoft (77billion)
can cope better than most.

If PS3 total software were to decline but games made by Sony (you know since were talking about SONY PROFITABILITY here) were to increase year on year (I mean if I'm checking next years releases made by Sony correctly, they have MAG, God of War 3, Gran Turmiso 5, White Knight Chronicles + continued sales of games this year plus the fact of incrase sales due to being greatest hits etc) would that not increase Sony's profitability positively?

Also with motion control coming out for the PS3 next year that would hinder profits because of development and marketing costs.

Lower total software sales will hinder different companies differently, you cant base Sony's own profitability on that assumption because one we don't know if its the ps3's peak year for hardware or software and we don't know other internal factors that can skew profitability.

In conclusion total software sales is a poor indicator on whether a company will have a profitability problem because we dont know what the sales mix will look like nor will we know the impact cost of sony motion control on profitability.

this thread fails, The end.