Sony has lost over $3 billion on the PS3

[bootman]

While losing $$$ on hardware sales in the video games industry is nothing new, the numbers are quite stagering.
I'm sure this will raise investor's eyebrows in this slowing market.

http://videogames.yahoo.com/feature/...he-ps3/1223467

[Terjyn]

This was announced *over a month ago*.

Everybody who's posted it this month got it wrong, it's the Fiscal Year '07 report that says they lost 3 billion dollars, we are 9 months away from the FY '08 report.

Furthermore, saying there's a combined 3 billion dollar loss is dumb. The Xbox franchise has a combined 6 billion dollar loss, do you think Microsoft is somehow going to drop the 360 in spite of the fact that (finally) the 360 is making money?

In short, I can't believe how much shoddy journalism there is on this issue. Kotaku decided to post the thing using the "2008 report"(technically true, the FY07 report came out in April 2008) and everybody and their brother is misinterpreting it, and reporting falsehoods.

[groovyone]

Already been posted and closed.

[bootman]

Originally Posted by Terjyn

This was announced *over a month ago*.

Everybody who's posted it this month got it wrong, it's the Fiscal Year '07 report that says they lost 3 billion dollars, we are 9 months away from the FY '08 report.

Furthermore, saying there's a combined 3 billion dollar loss is dumb. The Xbox franchise has a combined 6 billion dollar loss, do you think Microsoft is somehow going to drop the 360 in spite of the fact that (finally) the 360 is making money?

In short, I can't believe how much shoddy journalism there is on this issue. Kotaku decided to post the thing using the "2008 report"(technically true, the FY07 report came out in April 2008) and everybody and their brother is misinterpreting it, and reporting falsehoods.

Great point!
In that light, the PS3 is 2x more cost effective than the 360.

I wonder with articles like this what the real motive is?

[Banjo]

It's just as stupid as that piece CNN ran a week ago or before that. The piece was the so-called fact that PS3 would consume 5 times when compared to a fridge.

Well... if you leave it on 24/7... that could happen but who would be stupid enough to do that?

[blu2]

Originally Posted by Banjo

It's just as stupid as that piece CNN ran a week ago or before that. The piece was the so-called fact that PS3 would consume 5 times when compared to a fridge.

Well... if you leave it on 24/7... that could happen but who would be stupid enough to do that?

I guess you haven't heard of folding@home?

[Banjo]

Originally Posted by blu2

I guess you haven't heard of folding@home?

Yes, and I don't run it these days. My guess is most people don't either.

[NJ_RAMS_FAN]

Originally Posted by bootman

While losing $$$ on hardware sales in the video games industry is nothing new, the numbers are quite stagering.
I'm sure this will raise investor's eyebrows in this slowing market.

http://videogames.yahoo.com/feature/...he-ps3/1223467

still, they are making money in games and movies. even thou they lost all these money, they'll rebound. what? you wanted to pay $1000 for the ps3? lol..

[jd213]

Sony will soon be making 10 billion a year on Blu-ray, and the PS3 is expected to be profitable by the end of FY 2008: http://www.videobusiness.com/article...dustryid=47215

I'd say the 3 billion loss was a worthy investment.

[rangers85]

Originally Posted by jd213

Sony will soon be making 10 billion a year on Blu-ray, and the PS3 is expected to be profitable by the end of FY 2008: http://www.videobusiness.com/article...dustryid=47215

I'd say the 3 billion loss was a worthy investment.

Yup, the PS3 was seen as more by Sony than just a video game console, but also as a way of pushing Blu Ray into more homes that typically wouldn't have one to try to win the Blu/HDDVD war. I know myself for one would still not have a Blu Ray player til probably next year at the earliest if it wasn't for me having a PS3. That's about 20-30 blu rays that I've bought that would have never been bought and I'm sure there's a ton of other PS3 owners that are in the same boat. Just another reason Blu ray won the war.

Sony will use some of those blu ray sales to offset the PS3 losses. But all gaming systems lose mountains of cash the first few years of release. It was the same way with the original XBox and PS2, and before that the N64/PS/Dreamcast, etc. They make it back on game sales and eventually make it back on the systems themselves once they are able to make them mroe and more cheaply.

[ThePhantomOak]

Originally Posted by bootman

While losing $$$ on hardware sales in the video games industry is nothing new, the numbers are quite stagering.
I'm sure this will raise investor's eyebrows in this slowing market.

http://videogames.yahoo.com/feature/...he-ps3/1223467

June 15th called, it wants it's thread back!





Anyway, That number is not stagering at all. Unlike the 360, the PS3 is a computing innovation. Sony can use what they learned from the PS3 in other parts of the business world, where are 360 cannot. Also, 360 has had greater losses over the lifetime (so far between XB and 360 they have lost nearly 7 billion) and just started turning a profit of around 90 million a month. At that rate, Microsoft will take 6 and a half years to get in the black on the X box line, while Sony is still selling PS2, PSP, and PS3

[1million]

Originally Posted by jd213

Sony will soon be making 10 billion a year on Blu-ray, and the PS3 is expected to be profitable by the end of FY 2008: http://www.videobusiness.com/article...dustryid=47215

I'd say the 3 billion loss was a worthy investment.

Wow that's really good news for long term investor and good for Sony, we hope blu-ray market will stay hot till 2011 to recover sony's $3Billion Loss.

[bhampton]

Hey,

Just wanted to say... I don't know how to feel about this news.

I bought a PS3 at launch and I love it.

Now,.. they lost 3 Billion bringing to market. Should I feel like I got more then my money's worth since they lost money selling it to me? (Even though eventually the prices went down.) Should I feel guilty for being a part of this product that cost them more money then I can imagine for the most part? ...

I really don't know how to relate to 3 billion dollars anyway.

-Brian

[TheWildWhelk]

Sony are due respect for delaying the release of the PS3 to include Blu Ray. They could have shipped the PS3 out with a regular DVD drive, as i believe was orignally planned. I have a lot of respect for them for delaying the release, creating a superior format to Toshiba's half-step 'HD DUD', and for selling the Playstation 3 at a loss.

In an effort to completely undermine what i have just said, i find the cost of PS3 games to be too expensive for my tastes. Sure, i have Motorstorm, Conan and the kick-ass Unreal Tournament 3, but all of 'em have been bought from E-Bay for no more than the £15 or less!

[aviman33]

I'm glad. They used the PS3 to wage a Blu-Ray vs. HD DVD/X-Box war. They turned the fight into an Apple / PC thing, with fanboys and Blu Bloods and so forth. The loss was because adding Blu to the PS3 caused it to be late to market and overpriced. Besides, gaming systems don't even need BD capability at this point.

[blu2]

Originally Posted by bhampton

Hey,

Just wanted to say... I don't know how to feel about this news.

I bought a PS3 at launch and I love it.

Now,.. they lost 3 Billion bringing to market. Should I feel like I got more then my money's worth since they lost money selling it to me? (Even though eventually the prices went down.) Should I feel guilty for being a part of this product that cost them more money then I can imagine for the most part? ...

Can't see feeling guility about it... it's was Sony investment decision. Time will tell in the long term whether it was the best investment or not.

By using Blu Ray in the PS3, Sony basically single-handedly made a high def movie format using optical media a viable proposition. Think of where we'd be at this point without the PS3: Blu Ray would likely be dead, and HD DVD, with no supporting Trojan Horse, a marginal format with dim prospects.

So I say "Thanks Sony".

[Driver_King]

Originally Posted by aviman33

I'm glad. They used the PS3 to wage a Blu-Ray vs. HD DVD/X-Box war. They turned the fight into an Apple / PC thing, with fanboys and Blu Bloods and so forth. The loss was because adding Blu to the PS3 caused it to be late to market and overpriced. Besides, gaming systems don't even need BD capability at this point.

Well, you don't need to be posting this crap here. Tell me how the PS3 didn't need to use Blu-ray to fit MGS4 on a single disc, without extreme compression and data loss?

[SGRSBSKIER]

Is this loss factoring in RD for Blu-ray and the Cell as well?

If they are thats not that big of a deal, and should have been expected.

[ikbradley]

Originally Posted by aviman33

I'm glad. They used the PS3 to wage a Blu-Ray vs. HD DVD/X-Box war. They turned the fight into an Apple / PC thing, with fanboys and Blu Bloods and so forth. The loss was because adding Blu to the PS3 caused it to be late to market and overpriced. Besides, gaming systems don't even need BD capability at this point.

Right. Just like cartridges were the best thing and the CD was a novelty fad. Cartridge based systems were cheaper to manufacture and the read time was faster. Too bad the PS1 really pushed 3d game environments a generation forward.

By any chance, are you an AVS HD DVD refugee? January 2008 really seems to be a convenient time to join.

The PS3 is a great system that has a few flaws. It's a shame it wasn't pushed up in price. I would have loved an 8800 series card with duel HDMI outs and a faster drive.

Do you own a PS3 because I have not come across too many people who own a PS3 that say it's overpriced - even early adopters. It's only the people that were too cheap that said so.

For once Sony did right. It sunk billions into a format war and actually won; however, like most critics, I assume you will be adopting downloadable HD from Apple and truly enjoy compressed 720p resolution with awesome dolby sound.

This fanboy is glad he got the 20gb unit and thinks every penny 'wasted' by Sony has been to his benefit.

[Ascended_Saiyan]

Originally Posted by aviman33

I'm glad. They used the PS3 to wage a Blu-Ray vs. HD DVD/X-Box war. They turned the fight into an Apple / PC thing, with fanboys and Blu Bloods and so forth. The loss was because adding Blu to the PS3 caused it to be late to market and overpriced. Besides, gaming systems don't even need BD capability at this point.

This doesn't make sense. The total cost to build the PS3, at launch, was over $840. The Blu-ray drive was only $125 (a DVD drive would be around $30) of that cost. Sony, most likely, would not of subsidized the PS3 that much otherwise. The PS3 would be around the same price it launched at with or without the Blu-ray drive.

Sony knew this would happen anyway. That's why they projected that by year three the cost to build the PS3 would be $320. We're not even in year two, yet.

Some people just say/type the first thing that comes in their minds without any research.