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Forums - Sales Discussion - NPD Gamasutra article (interesting facts on Sony)

Dark Chaos on 18 January 2010
letsdance said:
Dark Chaos said:
letsdance said:
Lol you guys are hilarious.

Before price cut? Everything points in Costs lowered > Price lowered.

Nordlead - Your right. I'm still in WW mode as given by total units shipped. But Sony still lowered cost by billions this year WW.

Grimes - So what? Costs of not manufacturing Ps2's and PSP + Lower costs of manufacturing the Ps3 + Raised SW sales + 1.3 billion already scattered through 3 of 4 quarters = good enough for me.

So you are predicting a profit for Sony this quarter??

Its not out of the realm of possibility. They profited last year same quarter without major game division reorganizing, lowered Ps3 costs, and 4 major hitters

I will take that as a yes.



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letsdance on 18 January 2010
jarrod said:
letsdance said:
jarrod said:
letsdance said:
jarrod said:
letsdance said:
jarrod said:
letsdance said:
hkthui said:
letsdance said:

Id like to see those estimates.

 

Google search is your friend. First few links returned by searching "PS3 Slim Loss":

Sony To Sell PS3 Slim At A Loss | Edge Online

Hirai: PS3 Slim sold at a loss, but business profitable overall

Sony Still Sells PlayStation 3 at a Loss – Analysis - X-bit labs


Thanks... We already knew this... no where in there do I see up to a hundred dollars though. Closest we have is the CFO saying 10 percent... which is far from 100.

Here's the link to the $100 loss estimate.  It's from Diawa Institute of Research and was reported on TV Tokyo before hitting trade papers.  And yeah, a basic google search would've led you there.

I actually haven't seen any other specific estimates on the confirmed PS3 slim loss though.  I'm curious where you're getting your $30 from, can you give us a source?


http://www.joystiq.com/2009/05/15/report-sony-losing-about-40-on-each-ps3/

Sony's Chief Financial Officer.

That figure isn't in reference to the $299 slim, it's in reference to the $399 fat.  Again, where are you getting a $30 loss on the slim from?

...Are you really suggesting that Sony, a company scattering to find profitablilty in its gaming division, would lower costs more than costs saved at expense of market share while all through last year and this they have been a broken record about profitablitity and cutting cost as they are allowed to?

Well, yes given that was their corporate strategy this year.  They planned to eat losses to drive marketshare company wide, and this wasn't limited to PlayStation 3.  SCE's also been beating the "profitability next year" line the past 3 years running... here's a hint, it's probably not happening.

Again, can I get a link for that $30 figure?

Kazuo Hirai, president and group chief executive of Sony Computer Entertainment, told The Times at the inaugural Gamescom convention in Cologne: “We felt it was the right time to pass on the benefits of the fact that we’ve been able to reduce the number of components and their sizes. We wanted to pass the cost savings on to our consumers in the new price point.”

Vague PR speak?  I don't see "$30" in there, do you?

Give me an analyst estimate, a teardown estimate, something that's at least substantial and specific.


How about rational thinking? Do you really think that with shrunk chips, less parts, lowered shipping costs, cheaper chasis, cheaper buttons, cheaper blu-ray costs they barely saved anything?

Gamerace on 18 January 2010

Interesting read. I won't rehash the obvious but it'll be interesting to hear Sony's fiscal statement. It won't be pretty.



 

letsdance on 18 January 2010
Dark Chaos said:
letsdance said:
Dark Chaos said:
letsdance said:
Lol you guys are hilarious.

Before price cut? Everything points in Costs lowered > Price lowered.

Nordlead - Your right. I'm still in WW mode as given by total units shipped. But Sony still lowered cost by billions this year WW.

Grimes - So what? Costs of not manufacturing Ps2's and PSP + Lower costs of manufacturing the Ps3 + Raised SW sales + 1.3 billion already scattered through 3 of 4 quarters = good enough for me.

So you are predicting a profit for Sony this quarter??

Its not out of the realm of possibility. They profited last year same quarter without major game division reorganizing, lowered Ps3 costs, and 4 major hitters

I will take that as a yes.


No. WHat I'm saying is unlike you all I won't jump to conclusions. There are tons of things to take into consideration. And one thing you guys obviously arent taking into consideration is the fact that 3 of 4 quarters have already came and gone... 1.3 billion wasnt much to worry about then when it was already happening. So why worry now when tons of things are good in this last quarter.

Huya on 18 January 2010

wait sony made profit with PS3 whenO_o



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slowmo on 18 January 2010

Nothing I didn't expect in the OP but an interesting read regardless.



Demotruk on 18 January 2010
letsdance said:
How about rational thinking? Do you really think that with shrunk chips, less parts, lowered shipping costs, cheaper chasis, cheaper buttons, cheaper blu-ray costs they barely saved anything?

In order for losses to not increase per PS3, and they sold more consoles, they would have to make a $100 saving per console by switching to the slim. That's crazy. Costs don't drop that easily.



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www.xnagg.com/zombieasteroids/publish.htm

It is largely a technical exercise but feedback is appreciated.

letsdance on 18 January 2010
Demotruk said:
letsdance said:
How about rational thinking? Do you really think that with shrunk chips, less parts, lowered shipping costs, cheaper chasis, cheaper buttons, cheaper blu-ray costs they barely saved anything?

In order for losses to not increase per PS3, and they sold more consoles, they would have to make a $100 saving per console by switching to the slim. That's crazy. Costs don't drop that easily.


...They dont? It went from almost 900 dollars to 400 dollars in 2 years... you dont think in another year a fifth of that can be achieved with a major revamp?



Grimes on 18 January 2010
letsdance said:


No. WHat I'm saying is unlike you all I won't jump to conclusions. There are tons of things to take into consideration. And one thing you guys obviously arent taking into consideration is the fact that 3 of 4 quarters have already came and gone... 1.3 billion wasnt much to worry about then when it was already happening. So why worry now when tons of things are good in this last quarter.

Saying "it's possible" is jumping to conclusions.

Having a discussion for a likely outcome backed up by reasonable arguments is a rational discussion.



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.

Tenkin on 18 January 2010

Many of these states are US NPD and not world wide right ?