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Sony claims PS3 losses = $3.3+ Billion

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Old 06-26-2008, 07:35 PM   #76  
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Originally Posted by MikeRox View Post
Atari and Sega didn't work off the "loss" model......
Not to mention Sega's other blunder of axing the Saturn right when it was about to get some sweet titles over there in Japan. That pissed off a lot developers who had content pretty much done and ready to go Gold only to be told Saturn is dead move on to Dreamcast. That year lead didn't help Sega that much, at least Microsoft's gamble is paying off in the US, home turf is very important.

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Originally Posted by HarD-DVD View Post
There is NO such business model. Don't let the Sony clones tell you that they intended to lose $5 Billion dollars before making money. Look at the Wii, that was how the PS3 was supposed to sell.

This reject of a machine-PS3, is sold at $400 (originally $500-600) so it can play PS2 games? LMAOOO!!! Yea, dont let the Sony clones fool you again here. The PS3 games was supposed to be so good, that nobody should ever even talk about enjoying last generations' games. What a disaster and false that turned out to be.
Haha, look at the bolded. Shhh, don't tell this self admitted PS3 nuthugger the errors of his way.

To quote the famous philosopher:
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Originally Posted by awol
Like I said, he's one of the crazies.

Oh.

And a tool.
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Old 06-26-2008, 08:54 PM   #77  
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You're an idiot.

MGS4 got the highest scores possible from just about every reviewer in the world. Not to mention GTA4, Orange Box, Call of Duty 4, Gran Turismo 5 etc etc etc.

Sad about the CampaignHD newsletters not coming anymore?
No, YOU'RE the Idiot, two years later, it's first real game finally comes out- MGS4. The other games you've mentioned, are better rendered on the Xbox360 with higher texture memory. The real GT5, is not out yet and will not be due until Christmas- ***Yawn***

I stand correct, people have been suckered in to buy this sorry ass system and waited two years before a game finally comes out. In the meantime, they brag about using it to play PS2 Games.

As a gaming console, it is non-existent thus far.

Last edited by HarD-DVD; 06-26-2008 at 08:57 PM..
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Old 06-26-2008, 09:13 PM   #78  
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The PS3 is outselling the 360 in every territory in the world so they must be doing something right.
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Old 06-26-2008, 09:33 PM   #79  
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The PS3 is outselling the 360 in every territory in the world so they must be doing something right.
I guess, by default, they must be doing something right? It is sad how most of us are striving for mediocrity. The Playstation/2 had a great brand name. The execs thought that by passing on junk to people, consumers would still buy it. To a certain extent, they are correct. Because stupid people far out number smart people- who by the way can immediately see the transparency of the PS3. ie. as famously criticized by Valve owner Gabe Newel-

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"The PS3 is a total disaster on so many levels, I think Itís really clear that Sony lost track of what customers and what developers wanted,"
However, in the same breath, burning bridges can also be equally as difficult to mend. Soon, I predict- the name brand 'Playstation' will eventually erode, and it will be known for shoddy development.
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Old 06-26-2008, 09:48 PM   #80  
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Originally Posted by HarD-DVD View Post
I guess, by default, they must be doing something right? It is sad how most of us are striving for mediocrity. The Playstation/2 had a great brand name. The execs thought that by passing on junk to people, consumers would still buy it. To a certain extent, they are correct. Because stupid people far out number smart people- who by the way can immediately see the transparency of the PS3. ie. as famously criticized by Valve owner Gabe Newel-



However, in the same breath, burning bridges can also be equally as difficult to mend. Soon, I predict- the name brand 'Playstation' will eventually erode, and it will be known for shoddy development.
How's your job trolling Circuit City and scamming people into buying HD DVD players going these days?
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Old 06-26-2008, 09:55 PM   #81  
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How's your job trolling Circuit City and scamming people into buying HD DVD players going these days?
lol, say what, bob?

Where did you even come up with this, lol.
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Old 06-26-2008, 10:04 PM   #82  
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lol, say what, bob?

Where did you even come up with this, lol.
Oh man, don't tell me you forgot about this classic thread.

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I was browsing around for camera equipment at Circuit City and went over to browse the HDTVs. I overheard a customer talking about getting a BD player or a HD-DVD, the salesperson is a young person who seemed pretty indifferent. salesperson= both are good, HD-DVD is cheaper right now. buyer= can i get disney movies. salesperson= not sure, but you can get Shrek. buyer= there does not seem to be a lot of HD-DVD movies. you guys have 1 rack of it here.

This was when I jumped in and told the customer that HD-DVD will have more movies due to future studio support. Sale done! A small victory for HD-DVD.
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Old 06-26-2008, 10:06 PM   #83  
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Oh man, don't tell me you forgot about this classic thread.
Lets face it, back then the war was far from over. I'd still like to think that it is still far from over. Or at least Sony will commit Seppuku

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Old 06-27-2008, 02:03 AM   #84  
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There is NO such business model. Don't let the Sony clones tell you that they intended to lose $5 Billion dollars before making money. Look at the Wii, that was how the PS3 was supposed to sell.
Of course there is, it cost Microsoft $4bn between 2001 and 2005.
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Old 06-27-2008, 02:06 AM   #85  
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As a gaming console, it is non-existent thus far.
Oh well, I can still buy new release movies in high def to watch on it.

Granted it's software lineup doesn't touch the 360s, but thats not to say it's a complete train wreck. I don't see how anyone could struggle to find something to play on it. Though having just played Ticket to Ride on XBLA, it just lost the crown of having the best download title IMO (which until TtR was Pixel Junk Monsters).
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Old 06-27-2008, 02:11 AM   #86  
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Thanks for writing all that out.

That just tells me that consoles are a dumb business.
In a nutshell, yes they are. The Wii gets slammed for being SD. But the development costs are so much lower for the machine, that it takes most of the risk out of developing for the platform.

Christ, theres a new NES game coming out for it soon. Megaman 9 has been made using NES assets etc. and that game appears to have more gamers excited than any other download content yet. Just goes to show that you don't need the incredible visuals.

I think they were absolutely bang on the money with high def not being mature enough to need to become an essential part of a games console atm too. It means less processing needed, less visual assets, the texturing etc can be much simpler all reducing time in development, number of members required in a development team etc. and at the end of the day, it's looking increasingly like the PS3 and 360 being marketed as high definition games consoles is holding back the sales.

A member on here said not so long ago, "why would you buy a PS3 if you don't have a HDTV? You might as well just have a PS2". It wouldn't surprise me if thats the thinking quite a large chunk of people have taken towards "HD gaming".
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Old 06-27-2008, 03:31 AM   #87  
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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.
Gee. Maybe as an accountant looking at charts for too many years I cannot read them correctly anymore, but that 2nd link from Sony no less STILL shows them losing money (as in NET LOSS) for the gaming division. Here is the chart embedded for everyone to see it without going to the link:



Reducing a loss and calling it a profit (or surplus as our politicians do) is WHY we have such a large debt in the USA.

Also remember that the losses are AFTER including the PROFITS from the other products in the gaming division. The PS2 makes tons of profit at this point and I suspect that the PSP also makes a tidy profit now, so I wonder how much of a loss the PS3 has alone BEFORE reducing it by the profit in the "other" gaming products Sony sells.

I suspect that they WILL turn a "current" mfg profit at some point this year with the PS3 due to economies of scale and the repeated scaling back of features to do it, but the hole dug for just the PS3 losses alone will take a very long time to recover and when you consider that possibly more than half of the PS3 owners are only using it to play the reduced software margins of BD movies over the much higher software margins for games, it might never see 1/4 of the success that the PS2 enjoyed and possibly never make much OVERALL profit for the PS3 alone.

Anyone that thinks the PS3 has been the success Sony had hoped for at this point are smoking crack most likely. Sony expected it to be doing much better at this point I would guess and they are likely very careful still in the wording they use when they describe the financial status of the PS3 franchise. It is amazing how some carefully chosen words to describe a HUGE loss can actually have many people thinking it is making money.

Sony DID bet the company on the PS3 and BD and they might never get all that money back, but who knows for sure at this point? It really depends on how long they keep the PS3 on the market. I am not a hardcore gamer, but I know finances and Sony is in deep do do financially right now compared to how they were doing BEFORE the PS3 product started getting a lot of money being spent on it. They have sold off their Cell mfg plant to Toshiba AND they also sold off their insurance/financial division, and lets not forget that they also sold off 20% of the company to Dubai as well to fund the PS3 "fiasco".

Yes it IS a fiasco IMO from a financial standpoint, but it is a great machine IMO. We use it all the time in my house.
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Old 06-27-2008, 03:36 AM   #88  
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In a nutshell, yes they are. The Wii gets slammed for being SD. But the development costs are so much lower for the machine, that it takes most of the risk out of developing for the platform.

Christ, theres a new NES game coming out for it soon. Megaman 9 has been made using NES assets etc. and that game appears to have more gamers excited than any other download content yet. Just goes to show that you don't need the incredible visuals.

I think they were absolutely bang on the money with high def not being mature enough to need to become an essential part of a games console atm too. It means less processing needed, less visual assets, the texturing etc can be much simpler all reducing time in development, number of members required in a development team etc. and at the end of the day, it's looking increasingly like the PS3 and 360 being marketed as high definition games consoles is holding back the sales.

A member on here said not so long ago, "why would you buy a PS3 if you don't have a HDTV? You might as well just have a PS2". It wouldn't surprise me if thats the thinking quite a large chunk of people have taken towards "HD gaming".
We just bought a wii 2 weeks ago and my younger son just loves it. We have all been playing it quite a bit and it is a fun "FAMILY" console compared to the 360 7 PS3 that are more "shoot em up" driven IMO.

So now we have; a wii, a PS2, a PS3, a Game Cube, and various Nintendo DS pads too. We never got a 360 but my kids just love their game consoles and the DSs.
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Old 06-27-2008, 06:13 AM   #89  
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Default Another reason why Sony is willing to sell PS3 for a loss.

http://www.forbes.com/technology/200...rss_technology

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In an effort to reclaim past glory and compete with Apple, Sony (nyse: SNE - news - people ) on Thursday announced a three-year plan to create a digital entertainment platform that will deliver music, movies and TV shows to any Sony networked device. The company aims to have virtually all its electronic products networked and Wi-Fi capable by March 2011.

Sony said it will start rolling out its new video services to the PlayStation 3 game console this summer. Over the next three years, the company plans to distribute the content to a host of consumer electronic devices, including computers and its line of BRAVIA LCD TVs, and later to mobile phones and portable video players.

Sony will leverage its movies to help the nascent platform get a leg up. For instance, Hancock, a movie starring Will Smith as a drunken superhero that premieres July 2, will be available on Sony devices before it is released on DVD.
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Old 06-27-2008, 07:18 AM   #90  
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Haha, wonder if they'll start putting Blu-ray releases out before DVD too to try and encourage migration.
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