Sony Still Losing Money on PS3

SantoUno

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Aug 13, 2009
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Sheesh, everyone isn't bashing the PS3, they are just stating the cold truth, that despite boasting it's technological superiority over the other consoles, this is actually detrimental to Sony themselves. I mean, yes fanboys and such like to boast how the PS3 is supposed to be technologically superior to the 360 and Wii, but they don't realize that that is costing Sony. And we don't know if Sony had the same mindset as the fanboys, but if they did they are sure learning their lesson now.
 

Rigs83

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Feb 10, 2009
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The African miner who works eighteen hour days to get the raw resources needed for all our electronics loses the most.
 

jimduckie

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Mar 4, 2009
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sony put too much crap in the ps3 ... should of stuck to a gaming console only with online play too ... it didn't need facebook ,photo, etc ... especially the browser ... as for blue ray , meh doesn't impress me ... kinda like betamax tapes (for the young ones ... ask your parents and make a pit stop first and never mention 8 track tapes or vinyl records )
 

Clyde

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Aug 12, 2009
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If you want to look at how well a company is doing look at its financial statements.
Sony http://finance.yahoo.com/q/is?s=SNE&annual
Microsoft http://finance.yahoo.com/q/is?s=MSFT&annual
Nintendo http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=NTDOF

If you're too lazy to look Sony is the only one in an unhealthy position. These reports are based on their operations as a whole not just consoles. Unlike its competitors, Sony's Profit margin(Gross Profit) is thin.
 

More Fun To Compute

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Nov 18, 2008
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Xanadu84 said:
I don't think its a big assumption, seeing how the very existence of video games depends on it. And seeing how losing 50 dollars when you sell a console is likely to be traded for a person deciding to go with that cheaper console, and spend another wad of cash on peripherals, Online in the case of X Box, and then all the games that a person buys (Which DEFINITELY will amount to over 50 dollars) I think taking a loss initially is a pretty wise investment.
It's not as wise as making money on the hardware, software and peripherals which is what Nintendo do. How is it more wise to make loss making hardware when it doesn't even guarantee more sales?

Many people know about the "razor and razor blades" business model but the Microsoft business model seemed to be to lose billions of dollars to take over the market. Nintendo reacted smartly to this and it is still to be seen if Sony can handle the same losses. This is more like America vs Russia in cold war spending than Mr Gillette making money from blades but giving away the handle for free.
 

Asehujiko

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Feb 25, 2008
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bloob said:
If the PS3 is so poor then why is the US air force buying 2200 of them to modernise a super computer? http://www.escapistmagazine.com/news/view/96596-Air-Force-Orders-2-200-PlayStation-3s
Because they didn't got the memo that it's CPU power in paper is vastly inflated compared to it's actual performance. That or somebody threw a pile of cash at them to buy something useless, it's not the first time that that happened.
 

Scrat01

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Nov 11, 2009
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The thing with the PS3 is, that while each one sold it may be a 40 dollar loss. But, all the exclusives, rights, ect. The PS3 is nothing less than a money maker
 

DTWolfwood

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Oct 20, 2009
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a little under $40 is way better than the estimated $200 XD
I'd recommend yall read a book called "The Goal" to find out y Unit cost projections are meaningless in this day an age.

for the 360 fanboys when was your system looked at but the US government to provide a little extra processing power [http://www.escapistmagazine.com/news/view/96596-Air-Force-Orders-2-200-PlayStation-3s]
 

pha kin su pah

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Mar 26, 2008
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plastic_window said:
To be honest, this seems like a marketing ploy rather than marketing research.

If Sony actually lost $40 per PS3 sold, would they actually sell it? Would any sane member of the board of executives of Sony let any product go on sale if it meant that Sony would lose money?

The only possible upside of this is that share's may increase if Sony is seen to be doing something generous - but this would achieve the same results if Sony lied about it.

I'm not trying to say this is a bad thing, I'm just saying I find it hard to believe that any company these days - regardless of how rich and powerful they are - would allow anything they build to lose them such a high amount of money.

Think about that. It's $40 per Ps3 sold. That means they'd lose $40,000,000 if they sold a million units - which they've done. Many times over.

I do not believe it's possible for any company to lose this much money and continue to let it happen.
Well not appealing from a logical point of view, its a very viable business plan, i mean they are still selling aren't they? they still intend to right? exactly.
 

Sevre

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Apr 6, 2009
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DeadlyYellow said:
Well thats... dedication I guess. I wonder if Microsoft ever continually lost money on their 360.
Microsoft don't lose money because their hardware is made in jungles with chisels and monkeys, they only lose money when they have to replace every 360 that RRODs.
 

project23

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Nov 12, 2009
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Absurd conversation deserves silly response.
My response in LOLCODE [http://en.wikipedia.org/wiki/LOLCODE]

HAI
CAN HAS STDIO?
VISIBLE "The Playstation brand is not going away any time soon"
VISIBLE "The Xbox brand is not going away any time soon"
VISIBLE "The Nintendo brand is not going away any time soon"
KTHXBYE
 

Jake the Snake

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Mar 25, 2009
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There's a reason, despite all the horrible business decisions sony has made with the PS3, I still give them more credit than Microsoft. Sony, in general, know how to make a good console and games that go with it. Just look at the PS2. It pretty much dominated the last generation of gaming. It not only had a DvD player, but it has had a plathora of memorable games such as Ratchet and Clank, Jak and Daxter, Final Fantasy and many many others. Sony's not stupid. They just tried to hard with the whole hardware thing. Microsoft makes money by appealing to what the current mass market likes: Downloadable Content, Online Play and Games for the large 20 year old frat boy, i dont care as long i get to shoot something demographic. I think if Sony even put an ounce of more time into the development of the PSN, they'd be able to be propelled out of their slump. Plus, its not like the PS3 doesn't havee good exlcusive titles. I actually had more fun playing Resistance 2 than i ever did playing Halo 3. That and LittleBigPlanet is totally bitching. But in all seriousness, console gaming as whole doesn't really matter much to me. The PC ALWAYS has far superior graphics and much better controls. But if you were gonna get a console, PS3 is probably your safest bet. And those of you who say Nintendo is still in this console race need to get a Reality check. Nintendo has gone to the Dark side. They're also exploiting a new mass market of 5 year olds and Old people and they're never coming back. The only hardcore titles you're ever going to see from them are remakes of their same F***ing franchises about every 4 years. MARIO ZELDA POKEMON METROID. Jesus Christ just die Nintendo, die. ....yeah that is all....
 

More Fun To Compute

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Nov 18, 2008
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project23 said:
Absurd conversation deserves silly response.
My response in LOLCODE [http://en.wikipedia.org/wiki/LOLCODE]

HAI
CAN HAS STDIO?
VISIBLE "The Playstation brand is not going away any time soon"
VISIBLE "The Xbox brand is not going away any time soon"
VISIBLE "The Nintendo brand is not going away any time soon"
KTHXBYE
What's all this then?

4c4
< VISIBLE "The Sega brand is not going away any time soon"
---
> VISIBLE "The Xbox brand is not going away any time soon"
 

mikecoulter

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Dec 27, 2008
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I don't see how they can still be making such a loss. I just hope it doesn't stop Sony from making the PS4 as much of an innovative leap.
 

Deofuta

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Nov 10, 2009
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I'm not going to bother to quote, but am I completely wrong in stating that although it costs money, xbox live not only started with, but continues to be overall more stable then the PSN? I am sure I will be corrected if im wrong...
 

Quoth

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Aug 28, 2008
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I used to like my 360, until the first one broke in the first week. The second in the first month. The third after 11 months and the last straw was at 15 months. All in all the oldest 360 I owned was 10 months old.

Since the last one was well past the original 1 year warranty I switched to PS3.

A handful of exclusive titles here or there doesn't mean that much to me but knowing my console is unlikely to last past its warranty is a big turn off.

Fanboisms aside it's a shame Sony are losing money on their console and I hope this doesn't turn them off the idea. With the changes to PC gaming recently (MW2), and if all we're left with to choose between MS and Nintendo, then it'll be a sad day for gaming to lose an option in the next generation.