Why does Sony make PS3's?

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Gedo93

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#1 Gedo93
Member since 2008 • 160 Posts
As I have heard, Sony is losing money every time they sell a PS3, because they earn less money than they get for selling it. Also, they are selling more PS3's than they can possibly make, which results in a loss for Sony. Are they making money only by selling games for their system?
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jimm895

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#2 jimm895
Member since 2007 • 7703 Posts
There still makeing money on the PS2 and maybe the PSP plus money made off games and Blu-Ray movies make up the difference of what there loseing.
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--odai--

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#3 --odai--
Member since 2007 • 264 Posts
As I have heard, Sony is losing money every time they sell a PS3, because they earn less money than they get for selling it. Also, they are selling more PS3's than they can possibly make, which results in a loss for Sony. Are they making money only by selling games for their system?
Gedo93
because sony is looking for the future sony owns blu-ray and blu-ray is the future
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ONLYDOD

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#4 ONLYDOD
Member since 2006 • 6026 Posts
Well it's not like they aren't earning any profits in their gaming division, they still earn money from PS2 and PSP. And they have a very large in house development team, you may also have noticed that most of the PS3 exclusives are published by Sony. They could just give up and admit defeat, but think, what would that do to their fanbase and reputation? I think they lost alot of both with the PS3 as it is, but they would just be shooting themselves in the foot if they abandoned those who purhcased the PS3, alot of their fanbase would forget about them and their reputation as a console maker would just plumit. It's probably just me, but I have a strong feeling that the reason Sony are continuing to market and support the PS3 is because they don't want to loose even more of their fanbase.
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SpYkMo

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#5 SpYkMo
Member since 2006 • 393 Posts
in the beginning every console (excwpt maybe the wii) loses money. they make it up with games and peripherals and in this case blu ray movies. then we usually see some kind of new unit, which is cheaper to make (i.e the slim ps2) and later in the life of the console and they can make up some losses then. getting rid of backwards compatability, whether it was hardware or software, probably help cut the cost a bit, can't really say how much, but its 1 thing less they have to make and assemble.
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blueblur87

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#6 blueblur87
Member since 2005 • 326 Posts
This is completely normal, every console goes through a phase of not making any money to begin with, its to get people to buy the console and start buying games. Game sales are where they make the big bucks. Would you prefer to pay more for a PS3 so that they do make a profit on the console? I don't think so.
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boyinfridge

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#7 boyinfridge
Member since 2006 • 1796 Posts

sony doesnt own Blu-ray.

There are currently 18 board members ( as of January 2008 ) from 18 different companies

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Shaqneel

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#8 Shaqneel
Member since 2006 • 1413 Posts
Sony's business strategy is focused on the long term. They may not be making a profit on the hardware right now, but in a few years time, production costs will go down and they will stop losing money on each ps3 sold. In the meantime, they're already making a profit on ps2 and psp hardware and software, as well as building up a substantial userbase for the ps3 and making money off of the resulting game sales and liscencing fees. Furthermore, the ps3 indirectly brings in blu-ray revenue as sony collects royalties from the liscencing of it's blu-ray technology, considering the ps3 makes up the bulk of blu-ray players sold and keeps the format alfoat. They've technically always had this strategy of losing money on the hardware in the early years. I believe they initially lost money on ps2 hardware while selling loads of software.
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moshakirby18

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#9 moshakirby18
Member since 2006 • 1665 Posts
As I have heard, Sony is losing money every time they sell a PS3, because they earn less money than they get for selling it. Also, they are selling more PS3's than they can possibly make, which results in a loss for Sony. Are they making money only by selling games for their system?
Gedo93


Yep. Beings in a lot of cash though.
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Ownsin

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#10 Ownsin
Member since 2007 • 1331 Posts

sony doesnt own Blu-ray.

There are currently 18 board members ( as of January 2008 ) from 18 different companies

boyinfridge

yeah but the main head and the excutive company is sony :), so sony is the one who calls the shots.

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Mau-Justice

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#11 Mau-Justice
Member since 2008 • 4907 Posts

[QUOTE="Gedo93"]As I have heard, Sony is losing money every time they sell a PS3, because they earn less money than they get for selling it. Also, they are selling more PS3's than they can possibly make, which results in a loss for Sony. Are they making money only by selling games for their system?
--odai--
because sony is looking for the future sony owns blu-ray and blu-ray is the future

They don't own BR, nor is BR the future.

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pspdseagle

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#12 pspdseagle
Member since 2007 • 3307 Posts
Who cares? We win and Sony will surely start winning soon even though they already are with the PSP's & PS2's that they also sell
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kb8618

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#13 kb8618
Member since 2005 • 1363 Posts
huh, i thought sony just started making a profit on every PS3 or at least the 40gb earlier this year
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moshakirby18

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#14 moshakirby18
Member since 2006 • 1665 Posts
huh, i thought sony just started making a profit on every PS3 or at least the 40gb earlier this yearkb8618


Nope
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Pythos77

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#15 Pythos77
Member since 2005 • 889 Posts

You guys are all worried about PS3 and sony loosing money, but Im pretty confident that as the System matures and the library grows Sony will eventualy come out on top. A few more games like Metal gear Solid and GOD of War and you will see. I dont think it will be as succesfull as the PS2 but It will deffinitely not be a FLOP...

I would have included Fiinal Fantasy in the list but you guys know that story..

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shadowkiller11

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#16 shadowkiller11
Member since 2008 • 7956 Posts
only console that is actually making profit is nintendo for the wii, microsoft is still losing money or was and sony has said that they should start making profit in early 09.
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navstar29

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#17 navstar29
Member since 2004 • 4036 Posts

sony doesnt own Blu-ray.

There are currently 18 board members ( as of January 2008 ) from 18 different companies

boyinfridge

yeah sony's one of the lead supporters, your point

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Tigerman950

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#18 Tigerman950
Member since 2005 • 2517 Posts

Hopefully the PS3 will improve this year, since at the Sony Press Conference at this year's E3 they defined 2008 as "the Year of the PS3" so I really have no idea how that will go down.

Also keep in mind that Sony lost $3 billion on the PS3 so far (that's billion with a B).

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CookieGoat

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#19 CookieGoat
Member since 2008 • 142 Posts
you know, they sell some of the consoles for under the making-price to get their profit from the games.
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#20 Dantinho
Member since 2008 • 145 Posts
[QUOTE="boyinfridge"]

sony doesnt own Blu-ray.

There are currently 18 board members ( as of January 2008 ) from 18 different companies

Ownsin

yeah but the main head and the excutive company is sony :), so sony is the one who calls the shots.

No they're not, Apple has just as much apart of BluRay as Sony does, so do Sharp.

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mezzo20

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#21 mezzo20
Member since 2008 • 1702 Posts
As I have heard, Sony is losing money every time they sell a PS3, because they earn less money than they get for selling it. Also, they are selling more PS3's than they can possibly make, which results in a loss for Sony. Are they making money only by selling games for their system?
Gedo93
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Dramacidal

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#22 Dramacidal
Member since 2007 • 46 Posts

They make the PS3 for me. I asked them to, and they just decided to give everyone a chance to buy one afterwards.

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MERC_RECONN

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#23 MERC_RECONN
Member since 2006 • 2971 Posts

As I have heard, Sony is losing money every time they sell a PS3, because they earn less money than they get for selling it. Also, they are selling more PS3's than they can possibly make, which results in a loss for Sony. Are they making money only by selling games for their system?
Gedo93

That's a normal part of the business....they make up the lost with software and other things. That's a common fact with all consoles(EXCEPT FOR THE Wii...i's in a ****by it self) lol

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lesner87

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#25 lesner87
Member since 2004 • 2441 Posts

Read this and see how much US PS3 owners are benefeting when compared to the 360 guys.Even if sony is losing money you shouldnt worry about it.

"This is all good news for customers, who get all that computing power for a relative bargain. iSuppli called the PlayStation 3 an "engineering masterpiece," with a motherboard that looks more like that of an enterprise server or network switch than a games console."

http://www.pcworld.com/article/127906/sony_losing_big_money_on_ps3_hardware.html

And this is exactly why Sony makes PS3,FOR US.Unlike the 360 which is profiting on every single console they sell out.Read the last few paras.

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ColdfireTrilogy

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#26 ColdfireTrilogy
Member since 2005 • 4911 Posts
Pretty much every company loses money on each sale .. its on advertisements, royalties, and game devs buying dev kits and paying to put their game on the console that makes console makers money. Always has been this way, even the PS1 and N64 were money sinks per sale for the longest time.
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AzelKosMos

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#27 AzelKosMos
Member since 2005 • 34194 Posts
As I have heard, Sony is losing money every time they sell a PS3, because they earn less money than they get for selling it. Also, they are selling more PS3's than they can possibly make, which results in a loss for Sony. Are they making money only by selling games for their system?
Gedo93
They are investing in the future of the brand by taking a loss now.
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AgentZero225

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#28 AgentZero225
Member since 2007 • 1718 Posts

As I have heard, Sony is losing money every time they sell a PS3, because they earn less money than they get for selling it. Also, they are selling more PS3's than they can possibly make, which results in a loss for Sony. Are they making money only by selling games for their system?
Gedo93

It will cost less to make when they sell more ps3 games and ps3 hardware and then they will start to make a profit.

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CorporateHammer

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#29 CorporateHammer
Member since 2007 • 992 Posts
Well now that they dropped backwards compatability with the PS2 I wonder how much they are losing per console? I wouldnt think its much.
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DNChan

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#30 DNChan
Member since 2008 • 249 Posts
Sony makes money off the software sales. How do you expect Sony to sell games without the console to play them on?
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mbrockway

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#31 mbrockway
Member since 2007 • 3560 Posts

[QUOTE="kb8618"]huh, i thought sony just started making a profit on every PS3 or at least the 40gb earlier this yearmoshakirby18


Nope

The 40gb's cost of materials was ~$400 according to isuppli. That doesn't include manufacturing costs, shipping, and all that stuff.

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ColdScorpion

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#32 ColdScorpion
Member since 2005 • 506 Posts

As I have heard, Sony is losing money every time they sell a PS3, because they earn less money than they get for selling it. Also, they are selling more PS3's than they can possibly make, which results in a loss for Sony. Are they making money only by selling games for their system?
Gedo93

I wouldn't care about Sony losing money. I mean its not my money and when they do make money its not like i'll get any. As long as they're saving me money and I have a versatile console with quality games, i don't care.

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spidadragon1

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#33 spidadragon1
Member since 2007 • 1844 Posts
Overall hardware is never a buisiness of profit, software is and it makes up for the money lost for hardware
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Scianix-Black

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#34 Scianix-Black
Member since 2008 • 19297 Posts

[QUOTE="Gedo93"]As I have heard, Sony is losing money every time they sell a PS3, because they earn less money than they get for selling it. Also, they are selling more PS3's than they can possibly make, which results in a loss for Sony. Are they making money only by selling games for their system?
--odai--
because sony is looking for the future sony owns blu-ray and blu-ray is the future

Sony doesn't own Blu-Ray.

There's an ASSOCIATION of companies that owns Blu-Ray. Sony is one of the companies in that association.

So don't tell people things unless you know you're right.

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EnigmaXII

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#35 EnigmaXII
Member since 2008 • 51 Posts
I think that it is just to keep up w/ Wii and 360. Personally, I never liked when a new generation console came out. It is mostly because I need to save up so much money to buy it. :(
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unhollykilla

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#36 unhollykilla
Member since 2008 • 165 Posts
im not even gunna abswer this question.
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mushi799

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#37 mushi799
Member since 2006 • 1163 Posts

As I have heard, Sony is losing money every time they sell a PS3, because they earn less money than they get for selling it. Also, they are selling more PS3's than they can possibly make, which results in a loss for Sony. Are they making money only by selling games for their system?
Gedo93

You finally realized this as of 2008? They've been doing this since the ps2.

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acsam12304

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#38 acsam12304
Member since 2005 • 3387 Posts

i heard that Sony makes money off the gams.

plsu Sony is manking a bit of money not a lot but some. like selling a PS3 for a certin amount and make like only $50 off it or $100 off it thats a lil.

ok look letss ay you but at whole sale a product that cost around $800 and you selling it for $900 or $100 NOW thats a very lil profit. and i think thats how Sony is doing right now making very lil bit of money off the PS3.

but at teh end im happy with my PS3 and will always like my PS3 no matter what.

Sony u have my full support to the very end

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ronniepage588

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#39 ronniepage588
Member since 2003 • 4188 Posts

As I have heard, Sony is losing money every time they sell a PS3, because they earn less money than they get for selling it. Also, they are selling more PS3's than they can possibly make, which results in a loss for Sony. Are they making money only by selling games for their system?
Gedo93

lol 360 was losing a lot as well, and xbox pretty much never made a profit as far as i know.

the first two playstation (particularly playstation 2) have made MASSIVE profits that continue to pour in to this day.

the PS3 will definitely be strong well into its 10th year and will definitely begin to make massive profits as well.

you gotta lose some to win some in this biz. theyre making more than enough money from ps1 and ps2 and psp to continue with ps3.

and lets not forget what ps2 did for dvds! blu-ray is getting bigger and bigger by the day.

the reason the actually make ps3 in the first place is because Sony, unlike Microsoft, has always been the leader and the go to company for cutting edge entertainment technology ever since the walkman. (ipod definitely stole that medium, lol...which leads me to believe apple will pwn console industry one day but thats another story) so people respect that and they've made a great name for themselves and created a massive fan base with ps2 and ps1

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ronniepage588

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#40 ronniepage588
Member since 2003 • 4188 Posts

[QUOTE="--odai--"][QUOTE="Gedo93"]As I have heard, Sony is losing money every time they sell a PS3, because they earn less money than they get for selling it. Also, they are selling more PS3's than they can possibly make, which results in a loss for Sony. Are they making money only by selling games for their system?
Scianix-Black

because sony is looking for the future sony owns blu-ray and blu-ray is the future

Sony doesn't own Blu-Ray.

There's an ASSOCIATION of companies that owns Blu-Ray. Sony is one of the companies in that association.

So don't tell people things unless you know you're right.

sony OWNS blu-ray, as in Pwns blu-ray, as in THEY ARE THE ONES SELLING ALL THE BLU-RAYS!(BD) they're selling the most sold BD player and because of that, it is because of Sony that BDs are selling so well.

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darkblade15

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#41 darkblade15
Member since 2006 • 1254 Posts
well, as of January 2008, each unit costed around $400 to manufacture, idk about know (or the near future) but they arn't losing as much money as they did at launch (a loss around 250$ per console) so in about a year i'd estimate, they'll start to make profit on them