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-   -   Sony claims PS3 losses = $3.3+ Billion (https://www.highdefforum.com/high-definition-media/74320-sony-claims-ps3-losses-3-3-billion.html)

Super XP 06-25-2008 02:16 PM

Sony claims PS3 losses = $3.3+ Billion
 
Sony claims PS3 losses ebbing
Written by David Stellmack
Tuesday, 24 June 2008 08:38


Quote:

A mere loss of $1.15 billion

Sony filed its annual 20-F regulatory filing report, in which it claims it had losses of $2.15 billion for the the fiscal year 2007 after the launch of the PS3. The PS3 had been on the market for just about five months during its FY07 which ended on March 31, 2007. Sony claimed a big improvement over the fiscal year 2008, which ended March 31st, in which it said it only had losses of $1.15 billion in its gaming segment.

Sony sold its PS3 console at a price that was less than the cost of manufacturing it, in order to establish a large user hardware base. 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.

Sony claims that it sold almost twice as many PS3 consoles in 2008 as it did in 2007. Sony also claimed that it had significantly cut hardware costs in the PS3 to save about $1 billion.
http://www.fudzilla.com/index.php?op...8083&Itemid=38

Robertoy 06-25-2008 02:45 PM

Quote:

Originally Posted by CDRInfo
Despite the losses, Sony is still willing to offer the console even for free, according to a report by Tweak Town. Sony is expected to offer in Australia a PS3 with every purchase of a Sony Bravia TV. "

http://www.cdrinfo.com/Sections/News...x?NewsId=23571

http://blogs.guardian.co.uk/technolo...ing_money.html
http://blogs.guardian.co.uk/games/ar..._it_ships.html
http://www.sony.net/SonyInfo/IR/financial/fr/index.html

Even with $3.3 billion loss Sony is happy with Blu-ray and even with $1 billion loss, Toshiba is happy with DVD.

Roberto

hatt 06-25-2008 02:53 PM

Quote:

Originally Posted by Robertoy (Post 634871)

I'm pretty sure Toshiba is not happy with $1B loss since that was simply money that is gone. Doesn't that represent 3 or 4 years of DVD royalties? Sony at least has hopes of reclaiming their losses and turning future profits with the PS3 and BD.

HarD-DVD 06-25-2008 03:01 PM

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.

Mase 06-25-2008 03:04 PM

Its still not as bad as Microsofts losses but that is still a tough cookie to swallow.. Anyway you cut it, its all about pricing no matter which console it is and what they are capable of doing..

bmore 06-25-2008 03:07 PM

Quote:

Originally Posted by HarD-DVD (Post 634883)
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.

I doubt you are an accurate barometer for predicting the health of a format, HarD DVD.

SOBAY310 06-25-2008 03:09 PM

Quote:

Originally Posted by HarD-DVD (Post 634883)
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.

Nah, it'll be doing good alonger than that. I'd say the next Playstation will come around 2014.

ssjLancer 06-25-2008 03:10 PM

And the 360 lost 3 billion. Its expected.

Mase 06-25-2008 03:20 PM

Quote:

Originally Posted by SOBAY310 (Post 634889)
Nah, it'll be doing good alonger than that. I'd say the next Playstation will come around 2014.

That seems about right, Sony said in a statement not too long ago that they plan to start building the PS4 in 2010 and with all the R&D and everything we most likely wont see the fruit of their labor for 3-4 years after that...

My guess is December 2013 or early spring 2014...

anythingwt 06-25-2008 03:41 PM

Quote:

Originally Posted by Lilmase1153 (Post 634898)
That seems about right, Sony said in a statement not too long ago that they plan to start building the PS4 in 2010 and with all the R&D and everything we most likely wont see the fruit of their labor for 3-4 years after that...

My guess is December 2013 or early spring 2014...

December 2013 is probably accurate. If production is pushed into 2014, they'll hold off until late that year I bet. You know how they just love to release consoles right before the holidays.

Mase 06-25-2008 03:45 PM

Quote:

Originally Posted by anythingwt (Post 634909)
December 2013 is probably accurate. If production is pushed into 2014, they'll hold off until late that year I bet. You know how they just love to release consoles right before the holidays.

Very True, but if it did fall into 2014 I dont know if they would wait till the end of the year what with the new 360 coming out before then and I dont think Sony is going to let Microsoft have another huge headstart as they did this generation..

I wonder if they are really doing away physical media on the PS4 as it is rumored..

anythingwt 06-25-2008 03:51 PM

Quote:

Originally Posted by Lilmase1153 (Post 634912)
Very True, but if it did fall into 2014 I dont know if they would wait till the end of the year what with the new 360 coming out before then and I dont think Sony is going to let Microsoft have another huge headstart as they did this generation..

I wonder if they are really doing away physical media on the PS4 as it is rumored..


Microsoft made a mistake by releasing their consoles when they did IMO, because they had to deal with all those RROD issues and lost a ton of money in doing so.

About the rumor of physical media being eliminated..

I haven't heard that one. How would they distribute games.. just through downloads online? That would be cool.. but I don't know that the masses will be ready for something like that by 2013/4. I'm sure there are still a ton of people out there that just use their consoles the old fashioned way, and have never hooked them up to the internet.

Mase 06-25-2008 03:59 PM

Quote:

Originally Posted by anythingwt (Post 634914)
Microsoft made a mistake by releasing their consoles when they did IMO, because they had to deal with all those RROD issues and lost a ton of money in doing so.

About the rumor of physical media being eliminated..

I haven't heard that one. How would they distribute games.. just through downloads online? That would be cool.. but I don't know that the masses will be ready for something like that by 2013/4. I'm sure there are still a ton of people out there that just use their consoles the old fashioned way, and have never hooked them up to the internet.

I agree on the 360 releasing too early but remember with its head start this generation it now can take its time and be 2 years ahead of Sony for next generation..

As for the DL only, its a rumor but one that started from Sony who said gamings future is in Digital Downloads, I dont think they specified whether that future is for next generation or the one after.. They said they were amazed at the ammount of Down Loaded content people have bought up thus far and the need for a stronger DL service is only going to grow.. Me, I enjoy physical media but if they can find a smart solution for these DD DL's where one can actually own outright and can trade, sell or whatever they choose to do with them(aside from distributing pirated copies) then I am all for it..

hatt 06-25-2008 04:04 PM

Quote:

Originally Posted by Lilmase1153 (Post 634919)
Me, I enjoy physical media but if they can find a smart solution for these DD DL's where one can actually own outright and can trade, sell or whatever they choose to do with them(aside from distributing pirated copies) then I am all for it..

I would think this is one of the major reasons they want to go to DL, to stop the used game market.

SOBAY310 06-25-2008 04:14 PM

Quote:

Originally Posted by hatt (Post 634921)
I would think this is one of the major reasons they want to go to DL, to stop the used game market.

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.


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