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Sony claims PS3 losses = $3.3+ Billion

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Old 06-25-2008, 04:18 PM   #16  
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Originally Posted by HarD-DVD View Post
Considering, the lifespan of the thing is another 3-4 years, these are the losses that they will never see back. I doubt that there will ever be a PS4.
You are a tool.

The PS2 is still making money for Sony. If you don't think there's even a remote possibility that the PS3 could have the extensive lifespan of both it's forerunners, then you are, oh wait. I already said it. But it does bear repeating.

You are a tool.
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Old 06-25-2008, 04:23 PM   #17  
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Originally Posted by awol View Post
You are a tool.

The PS2 is still making money for Sony. If you don't think there's even a remote possibility that the PS3 could have the extensive lifespan of both it's forerunners, then you are, oh wait. I already said it. But it does bear repeating.

You are a tool.
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Old 06-25-2008, 04:28 PM   #18  
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I think the used game market helps them out though. Many people trade in their used games to put towards a new game and that cycle repeats itself over and over again.
I see your point. But I wonder if the industry sees it the same. They are probably thinking those 3 games you traded to Gamestop for a new game are just getting resold and they make nothing off it. And you would have bought the new game anyway and the other people would have bought the three trade in games new as well.
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Old 06-25-2008, 04:30 PM   #19  
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Others have agreed, that the PS3 will have a lifespan of 3-4 years remaining as I have mentioned. Sony will continue taking losses for all those years- and maybe, maybe make some money in it's last year.

By then, they would have hemorrhaged so much money that they would not want to repeat this experience. The PS and PS2 was a great success- this allowed Sony to make the PS3. But the numbers from the PS3 is dismal, coupled with the Blu Ray fiasco. In this industry, it is a one strike you are out- ask Sega.

Given the unexpected strength of the Wii, Nintendo has pretty much booted Sony out of the top two positions. Sony plans on making a PS4, but given how their assets have dried up, I won't be counting on it.
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Old 06-25-2008, 04:36 PM   #20  
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Originally Posted by HarD-DVD View Post
Others have agreed, that the PS3 will have a lifespan of 3-4 years remaining as I have mentioned. Sony will continue taking losses for all those years- and maybe, maybe make some money in it's last year.

By then, they would have hemorrhaged so much money that they would not want to repeat this experience. The PS and PS2 was a great success- this allowed Sony to make the PS3. But the numbers from the PS3 is dismal, coupled with the Blu Ray fiasco. In this industry, it is a one strike you are out- ask Sega.

Given the unexpected strength of the Wii, Nintendo has pretty much booted Sony out of the top two positions. Sony plans on making a PS4, but given how their assets have dried up, I won't be counting on it.
Aren't you presenting conflicting views in this single post? If they might make some money at the end of your made up time frame(which even you have to admit would be some sort of worst case scenario), that would mean they would never want to produce another console that might make money?
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Old 06-25-2008, 04:38 PM   #21  
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Originally Posted by HarD-DVD View Post
Others have agreed, that the PS3 will have a lifespan of 3-4 years remaining as I have mentioned. Sony will continue taking losses for all those years- and maybe, maybe make some money in it's last year.

By then, they would have hemorrhaged so much money that they would not want to repeat this experience. The PS and PS2 was a great success- this allowed Sony to make the PS3. But the numbers from the PS3 is dismal, coupled with the Blu Ray fiasco. In this industry, it is a one strike you are out- ask Sega.

Given the unexpected strength of the Wii, Nintendo has pretty much booted Sony out of the top two positions. Sony plans on making a PS4, but given how their assets have dried up, I won't be counting on it.
This is really a different subject - but I have to wonder if the industry will ever get tired of buying new gaming units every couple years. I mean, this gets expensive for the hardcore gamer doesn't it? When I was a kid - really it was every 5-7 years minimum before some new gaming system came out (unless my memory fails me). I guess you hit the iron while it's hot....
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Old 06-25-2008, 04:45 PM   #22  
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Originally Posted by gosmosis View Post
This is really a different subject - but I have to wonder if the industry will ever get tired of buying new gaming units every couple years. I mean, this gets expensive for the hardcore gamer doesn't it? When I was a kid - really it was every 5-7 years minimum before some new gaming system came out (unless my memory fails me). I guess you hit the iron while it's hot....

Ehh.. it's not that bad if you really think about it. Even if a system is $500 on average, which is an over-exaggeration... That means that the dedicated gamer spends $500 every 5 yrs or so on a system. Thats 1 semi-big-ticket-item every 5 yrs. Pretty affordable habit.

Hell, right now you could own every next gen system for just over $1k. Beats being addicted to have cutting edge computer technology, where your stuff is obsolete 6 months after you buy it.
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Old 06-25-2008, 04:45 PM   #23  
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Originally Posted by gosmosis View Post
This is really a different subject - but I have to wonder if the industry will ever get tired of buying new gaming units every couple years. I mean, this gets expensive for the hardcore gamer doesn't it? When I was a kid - really it was every 5-7 years minimum before some new gaming system came out (unless my memory fails me). I guess you hit the iron while it's hot....
There is still a 5-7 year minimum.

The OP and his cronies are just bitter.
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Old 06-25-2008, 04:47 PM   #24  
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Originally Posted by gosmosis View Post
This is really a different subject - but I have to wonder if the industry will ever get tired of buying new gaming units every couple years. I mean, this gets expensive for the hardcore gamer doesn't it? When I was a kid - really it was every 5-7 years minimum before some new gaming system came out (unless my memory fails me). I guess you hit the iron while it's hot....
After a year or 2 in development and 4 or 5 years of a console being out you are basically dealing with ancient history in technology terms.
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Old 06-25-2008, 05:16 PM   #25  
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Quote:
Originally Posted by awol
You are a tool.

The PS2 is still making money for Sony. If you don't think there's even a remote possibility that the PS3 could have the extensive lifespan of both it's forerunners, then you are, oh wait. I already said it. But it does bear repeating.

You are a tool.
I agree, and then I dont. Its hard to compare the PS3 to last generation and the PS2 with nothing even close to competition. Thats not the case for the PS3, and Sony may very well be pushed into next gen just based on real competition this generation. I think the console industry was changed forever with this generation, so its hard for me to agree fully with your comparison, though it is a logical assumption.
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Old 06-25-2008, 05:24 PM   #26  
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Even when a new gaming system comes out, your PS3 will continue to play all your existing games. Changing technology every 5 years is the normal tune of the times we are living. Things just get smaller and better as time goes on.

PS3 loss....
Sony will make this money back with other investments. Also, blu-ray will be a nice return in profits over time.
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Old 06-25-2008, 05:53 PM   #27  
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Even when a new gaming system comes out, your PS3 will continue to play all your existing games.
You mean the PS3 games right?

Thanks to Toshiba and HD DVD, there are a lot of PS3 40s out there!
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Old 06-25-2008, 06:01 PM   #28  
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"Losses over the PS3 rose to more than $3.3 billion during the fiscal years 2007 and 2008, which Sony attributed to establishing the hardware, the product and selling the consoles at a loss. The royalties on software games normally offset hardware expenses, but has not countered these huge losses yet."

Lets be clear... With little exception, gaming hardware always takes a loss. It's the software and accessories that make up the profit.

Saying a game console is taking a loss on the hardware, is not an indication of the success and/or profit of the gaming business. And don't forget our little friend... Blu-ray. I'm sure Sony doesn't mind taking a hardware loss now, against the profit potential they have with Blu-ray.

Furthermore, consoles have life even when their predecessor arrives. Once "PS4" hit the shelves (and yes, there will be a PS4), there will continue to be hardware and software sales for the PS3. This is when profits really kick in.

While a game console's life strictly from a gamer's perspective may only be 4-5 years, the business model is much longer. PS2 was released in 2000, yet you are still able to purchase one online or in a store today. Even in recent times, the PS2 has managed (on occassion) to outsell a newer system like the 360.

Which speaking of recent sales, the PS3 has managed to overall outsell the 360 for the last few months. In other words, the PS3 is doing just fine (especially when you factor the current price tag) and will make Sony plenty of money.

Edit... And I don't want to, nor do I feel we need to for obvious reasons go into it; considering Blu-ray is the only major HD disc format available, it probably shouldn't be refered to as a "fiasco."

Last edited by LordGamer; 06-25-2008 at 06:19 PM..
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Old 06-25-2008, 06:13 PM   #29  
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Originally Posted by HarD-DVD View Post
But the numbers from the PS3 is dismal, coupled with the Blu Ray fiasco. In this industry, it is a one strike you are out- ask Sega.
Actually, Sega had a few strikes. The 32X, Saturn, and Dreamcast could all be considered strikes for Sega.

Not to mention that Nintendo had the Virtual Boy, Gamecube, and (to some people) the N64 as strikes. But Nintendo is still well situated in the game console industry.

So.... not really one strike and you are out. Playstations, present and future, should be just fine.
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Old 06-25-2008, 06:26 PM   #30  
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Originally Posted by HarD-DVD View Post
Others have agreed, that the PS3 will have a lifespan of 3-4 years remaining as I have mentioned. Sony will continue taking losses for all those years- and maybe, maybe make some money in it's last year.
Some money in its last year huh?
Interesting prediction.. considering they already made a profit in the last 2 quarters..
http://www.engadget.com/2008/01/31/s...urns-a-profit/

They'll be breaking even soon enough. The same cant be said for the 360.

Here's the actual chart by the way. Notice how it says 'overall sales increase due to PS3 sales' and at the same time a huge reduction in losses. The hardware isnt bleeding as much money as you think.
http://www.sony.net/SonyInfo/IR/fina.../14_slide.html

FY08 will be a complete profit. If not Ill eat my hat.

Last edited by ssjLancer; 06-25-2008 at 06:29 PM..
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