Sony losses 3 Billion Dollars due to the PS3 manu. cost

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integralsmatic

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I just saw this on the yahoo front page and wanted to share the article for those who havent seen or read it yet

http://videogames.yahoo.com/feature/sony-has-lost-over-3-billion-on-the-ps3/1223467

it appears sony lost money because they priced the system way below their production costs(whats new).

Atleast we have a number on the losses they occurred. Boy, as the article suggested. This makes the initial $600 price tag sound really generous.
 
kinda old, plus yahoo, meh. I dont really care, as long as the ps3 doesn't become the dreamcast I will be happy. Its their money not mine.
 
[quote name='V4oLDbOY']kinda old, plus yahoo, meh. I dont really care, as long as the ps3 doesn't become the dreamcast I will be happy. Its their money not mine.[/quote]


love the old boy stuff.

yeah i know this is kind of old. but i never remembered if they posted an actual numbered loss. So in any case...

Yeah i never knew when the numbers were posted. I just saw it there and said what the heck.

I dont think the ps3 has a chance to become the DC. Its still a popular system and with due time Sony can make their money back....just the initial price point hurt them.
 
I think this is pretty common now with consoles save Nintendo entries into the market. Most will take a fairly large loss to penetrate the market and get a good base. Sony had more to win/lose this time with the format war going on if their lucky it will pay off in other areas of their buisness not just the gaming section.
 
Sony released initially released the PS3 at a time when stand alone Bluray players from every other manufacturer where 1-1.5k. The PS3 was half the price of Sony's stand alone player.

I never felt the PS3 was overpriced. The problem was that the exclusive titles I wanted were at least a year away and the movies were twice the price of their DVD counterpart.
 
[quote name='PhoenixT']I think this is pretty common now with consoles save Nintendo entries into the market. Most will take a fairly large loss to penetrate the market and get a good base. Sony had more to win/lose this time with the format war going on if their lucky it will pay off in other areas of their buisness not just the gaming section.[/quote]

That's where I think Sony went wrong this gen. They pushed this new format on consumers with their PS3 and their other players. Only really videophiles are getting into the new formats if you ask me, since normal(read: brokeass) consumers(like me) don't give a shit one way or the other.

As long as I can still get what few(maybe one a year)movies I still buy on plain old DVD and for $5-10 @ Best Buy or Circuit City during a sale, I'm golden. Otherwise, I'll just be content to buy a copy from the one local game/movie shop which prices 'older' movies @ $3 each.

I mean, I like the fact that you CAN surf the net via the PS3, but I doubt I'll ever use it, much like the free PSN online play or any of the other functions aside from playing games on it. I bought the system mainly for God Of War 3, GTA IV, Just Cause 2 and Mercenaries 2. Outside of those four titles, I'll pick up 'clones' of any of them(like I did with Conan on PS3, which is a decent God Of War clone).

That's the only thing wrong with my gaming habits really, is that I'm NOT a social gamer except for offline multiplayer titles, I only usually buy 'sandbox' titles and I very rarely care about the 'big' games since they're usually in a genre I could care less about(MGS4, Gran Turismo 5 being 2 of them).
 
Sony will make that money back overtime anyways, as they have won the High-Def war.
Since theres rumored to be another price cut in the future I don't think Sony cares if they bleed alittle more.
 
The PS3 is probably one of the major reason Blu Ray won the format war. That could led to huge earning in the future.
 
[quote name='Dark Slayer120']Damn 3 billion. Crazy.[/quote]

I believe MS lost 10 billion on the original Xbox and about 3 or so thus far on the 360, so aside from Nintendo this gen, I don't think ANYONE is making a profit on their machine just yet.

As for the high def 'format war', both sides can keep their product for eternity, since I'll never buy a single BR or HD-DVD disc. If I wanna see a movie, I'll hit the theaters and see it there.
 
[quote name='62t']The PS3 is probably one of the major reason Blu Ray won the format war. That could led to huge earning in the future.[/QUOTE]

Agreed.
 
[quote name='IAmTheCheapestGamer']

As for the high def 'format war', both sides can keep their product for eternity, since I'll never buy a single BR or HD-DVD disc. If I wanna see a movie, I'll hit the theaters and see it there.[/QUOTE]

:applause: Good for you... :roll:
 
[quote name='Deadpool']:applause: Good for you... :roll:[/QUOTE]
I'm the direct opposite. I limit myself to 1-2 movies in a theatre a year. I wait until they come out on video and rent or buy them.. I think going to a movie theatre is a waste of money. once you add the popcorn and all.
 
I bought the Ps3 in june of last year for 500 bucks cause of MGS4. the only game I played was assassin's creed which I beat and sold. Been living off of demos and Netflix Blu-rays until MGS4 came out last month. And it was worth it! MGS4 is a transcendent experience and well worth the 500 dollars I spent on the PS3. They said that in 2012 BR's would overtake DVD. By that time I'm sure PS3 will be on the upswing and start making bank. It's good to see Sony humbled IMO. The good thing about the Ps3 not having any games is that you can take the time to enjoy the games that you have. Not as much shovelware as the wii.
 
[quote name='eb3604']I'm the direct opposite. I limit myself to 1-2 movies in a theatre a year. I wait until they come out on video and rent or buy them.. I think going to a movie theatre is a waste of money. once you add the popcorn and all.[/quote]

Not if ya hit up a drive-in theater in the summer and bring in yer own stuff from the outside. ;) Cause then it's $6-7 a person for 2 movies usually, so I'd easily pay $3-3.50 a movie to see TWO movies.

Hell, the one time I brought in 2-3 trays of pizza from Domino's n sold a few slices to the people in the other cars around me, I broke even and saw the movies for free that night. :lol:
 
It was worth it, PS3 really helped them win the format wars.
and theaters are too costly nowadays. I'd rather just pay practically the same price for a blu-ray disc.
 
Its no good unless you were a movie buff who was on the BR side. Otherwise throwing away the chance to have a successful GAMING console, from the standpoint of the consumer, was a waste.
 
[quote name='IAmTheCheapestGamer']Not if ya hit up a drive-in theater in the summer and bring in yer own stuff from the outside. ;) Cause then it's $6-7 a person for 2 movies usually, so I'd easily pay $3-3.50 a movie to see TWO movies.

Hell, the one time I brought in 2-3 trays of pizza from Domino's n sold a few slices to the people in the other cars around me, I broke even and saw the movies for free that night. :lol:[/quote]

wow you are the cheapest gamer!! :lol:
 
[quote name='Zoglog']It was worth it, PS3 really helped them win the format wars.
and theaters are too costly nowadays. I'd rather just pay practically the same price for a blu-ray disc.[/quote]

Where the hell do you live that it's $20-30 to go to a movie? I mean I know you probably figure popcorn and other non essential stuff into that price, but here there's a theater that shows movies for $5.25 on Tuesdays.

As for me, Dollar Tree dollar stores make buying snackage for the movies cheap and usually I don't even finish a half bag of popcorn, so I just go without most times.

Or, of course, I do the drive-in like I said before, since ya can't beat that deal one bit. There haven't been many(any in my case) recent movies that're really WORTH paying money for the home versions of, if you ask me, so my 'attach rate' for movies on the PS3 will remain ZERO for forever I'm sure.:razz:
 
[quote name='IAmTheCheapestGamer']Where the hell do you live that it's $20-30 to go to a movie? I mean I know you probably figure popcorn and other non essential stuff into that price, but here there's a theater that shows movies for $5.25 on Tuesdays.

As for me, Dollar Tree dollar stores make buying snackage for the movies cheap and usually I don't even finish a half bag of popcorn, so I just go without most times.

Or, of course, I do the drive-in like I said before, since ya can't beat that deal one bit. There haven't been many(any in my case) recent movies that're really WORTH paying money for the home versions of, if you ask me, so my 'attach rate' for movies on the PS3 will remain ZERO for forever I'm sure.:razz:[/QUOTE]

movie theaters in LA range from 9-14 bucks. I certainly ain't going alone so i'm bringing my GF with me. That = around 20 bucks as opposed to just buying the disc.

Its no good unless you were a movie buff who was on the BR side. Otherwise throwing away the chance to have a successful GAMING console, from the standpoint of the consumer, was a waste.
Click to expand...

that doesn't matter, Movie sales > Game sales.

from the standpoint of the gamer fanboy, was a waste.
Click to expand...
fixed
 
[quote name='Zoglog']movie theaters in LA range from 9-14 bucks. I certainly ain't going alone so i'm bringing my GF with me. That = around 20 bucks as opposed to just buying the disc.
[/QUOTE]



14?! Shit at 14 a ticket going to the theater would never even cross my mind, I would be buying dvds and blu-ray every week instead. Ticket prices here where I am in MD are hovering around 9.50, i've completely cut popcorn out of the equation when i go
 
[quote name='sparklecopy']Considering that the Playstation 2 made them at least 100 Billion I'm not crying for them.[/quote]
PS2 profits are completely eaten through, now they are working on evening out money made back in the PS1 days.
Code: 
FY*       Sony**        Nintendo        Microsoft
1998    974,000,000    629,000,000
1999   1,130,000,000   645,000,000
2000    730,000,000    421,000,000
2001    -409,000,000   726,000,000
2002    623,000,000    800,000,000     -750,000,000
2003    939,000,000    560,000,000     -1,191,000,000
2004    650,000,000    316,000,000     -1,215,000,000
2005    404,000,000    777,000,000     -485,000,000
2006    75,000,00      894,000,000     -1,262,000,000
2007   -1,969,000,000  1,489,000,000   -1,892,000,000
2008   -965,000,000     2,193,000,000   532,000,000                        
Totals  2,182,000,000  9,450,000,000   -6,263,000,000
Microsoft – Entertainment and Devices Division (Home and Entertainment) through 2nd Q FY 2008 ended December 31 2007
Sony – Game division through 3rd Q FY 2007 ended December 31 2007
Nintendo – Overall through 3rd Q FY 2008 ended December 31 2007.
Exchange rate from Nintendo's Financial Results Briefing for the 9 month period ended December 31 2007 Supplementary Information 1$ == 118.05 ¥

* -- it's fiscal year for both Microsoft and Nintendo
** -- it's FY+1 for Sony for comparison reasons
 
[quote name='Zoglog']movie theaters in LA range from 9-14 bucks. I certainly ain't going alone so i'm bringing my GF with me. That = around 20 bucks as opposed to just buying the disc.[/quote]

I've had about maybe 3-5 gf's in my lifetime, they've all been a pain in the ass to me, so I'm blissfully SINGLE. So, I'd willingly go alone if I went to see a movie. About the only thing I might buy is the $4.50 half gallon jug of watered down syrup water most theaters call soda, since most theater popcorn is too damn salty and thus requires buying the damn soda, so I skip the other step and JUST buy the sugar water.

So yeah, I'd rather pay the $5.25 on Tuesdays to go see a movie and forgo paying over $10 for a movie I'll watch once and watch collect dust.
 
Well, what many people may not believe is, the cost of blu-ray isn't really the reason PS3 had a massive loss. The early PS3 consoles Sony made (from launch to mid 2007), it did cost an extra $100 to use blu-ray (now it's down to like $8 or so more dollars according to the price of new blu-ray diodes). The main issue was the PS3 motherboard cost Sony (does not include wireless board, blu-ray drive, power supply, HDD, etc.) $500 to make (the motherboard had Cell, RSX, + PS2 components). The 80GB slightly reduced the cost, but it was still expensive. That is why Sony made the 40GB (by reducing PS2 components, allowed for the motherboard cost to drop by 40%, most of that was due to being able to use cheaper components and removing all PS2 components, along with shrinking the circuit board). The good thing now is, they do not lose as much money (40GB only loses money on a small retailer loyalty and shipping, while 80GB loses around $80 or so). People may want 60GB features, but in reality, the only way Sony could ever break even on it was to sell it at over $600 (at launch it cost $840 to make a 60GB, $800 to make a 20GB), and people complained they didn't want to pay that much, which explains why we have what we do now.
 
I think another reason is that SONY used to be Number 1 in the Portable audio player industry as well as TV's and VCR's. As soon as we entered the digital age they fucked it up by sticking to proprietary ATRAC3 and crap software like Sonicstage. This opened the door for Apple to kick their asses all up and down the information highway. they don't sell enough DVD players as philips undercuts their prices. and HDTV's are way too a niche market for them now. They screwed up badly with the Walkman. Imagine if they had an open source mp3 player? they would have cleaned up knowing their reputation with Walkman. But they closed the door with their hubris and propietary software and they are paying for it now. Apple was just a company getting back on it's feet with their candy colored computers and would not be the Juggernaut they are today without the Ipod. All that Apple Ipod money should have been Sony's but they fucked it up.
 
This is my new favorite CAG story! Hope you'll keep us informed on the pace of your concession sales this summer ;)

[quote name='IAmTheCheapestGamer']Not if ya hit up a drive-in theater in the summer and bring in yer own stuff from the outside. ;) Cause then it's $6-7 a person for 2 movies usually, so I'd easily pay $3-3.50 a movie to see TWO movies.

Hell, the one time I brought in 2-3 trays of pizza from Domino's n sold a few slices to the people in the other cars around me, I broke even and saw the movies for free that night. :lol:[/quote]
 
[quote name='IAmTheCheapestGamer']Not if ya hit up a drive-in theater in the summer and bring in yer own stuff from the outside. ;) Cause then it's $6-7 a person for 2 movies usually, so I'd easily pay $3-3.50 a movie to see TWO movies.

Hell, the one time I brought in 2-3 trays of pizza from Domino's n sold a few slices to the people in the other cars around me, I broke even and saw the movies for free that night. :lol:[/QUOTE]

Speaking of pizza and movies, I've taken a whole pizza into a theater before. It was tricky and took some creative maneuvering, but I did it. Between that and the 2 liter I also took in, it was a good time.
 
[quote name='dfo']This is my new favorite CAG story! Hope you'll keep us informed on the pace of your concession sales this summer ;)[/quote]

LOL We only ever did it maybe ONE time though, but it was funny since we hadn't originally intended to sell any pieces but someone came over and asked, so we said what the hell.

Oh and whoknows, I'd like to know HOW you achieved that, since you had to have either worn a HUGE trenchcoat or VERY baggy clothes to do so. :lol:
 
Sony loses 3 billion in their game division, however, since the gaming division is directly responsible for profits in their movie, blu ray, division, how much profit did they gain in that area as a result of the PS3?
 
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