PS3 is about to breakeven.

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FIipMode

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#1 FIipMode
Member since 2009 • 10850 Posts

Link, what can I say more than great news, and sorry if old.

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AdjacentLives

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#2 AdjacentLives
Member since 2009 • 1173 Posts

Link, what can I say more than great news, and sorry if old.

FIipMode

So they lose money on each console in the US ?

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ogvampire

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#3 ogvampire
Member since 2008 • 9210 Posts

all it says is that sony isnt losing as much money on each ps3 sold as before....

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Yankees718

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#4 Yankees718
Member since 2009 • 1033 Posts

[QUOTE="FIipMode"]

Link, what can I say more than great news, and sorry if old.

AdjacentLives

So they lose money on each console in the US ?

Cool, now if only cows can stop defending the overhyping

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cainetao11

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#5 cainetao11
Member since 2006 • 38071 Posts
I just told this to my PS3..................................................................................................still no response
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Nero_Paladin

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#6 Nero_Paladin
Member since 2007 • 1099 Posts

I just told this to my PS3..................................................................................................still no responsecainetao11

Don't forget, you need a bluetooth mic if you want it to work :P

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DoomZaW

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#7 DoomZaW
Member since 2007 • 6475 Posts

let me get this straight, sony is going to earn money by selling consoles for less than what it costs to make them? Yeah that will definitely make a profit

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DoomZaW

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#8 DoomZaW
Member since 2007 • 6475 Posts

all it says is that sony isnt losing as much money on each ps3 sold as before....

ogvampire

considering we are 3 years into its life cycle, that is still really bad from a buisness standpoint

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cainetao11

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#9 cainetao11
Member since 2006 • 38071 Posts

[QUOTE="cainetao11"]I just told this to my PS3..................................................................................................still no responseNero_Paladin

Don't forget, you need a bluetooth mic if you want it to work :P

Damn You! *starts charging my bluetooth mic*
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BuryMe

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#10 BuryMe
Member since 2004 • 22017 Posts

Umm.. Good for them, I guess?

But going this long and only being close to breaking even is just bad business. I'm surprised it's taken them so long

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ronvalencia

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#11 ronvalencia
Member since 2008 • 29612 Posts
[QUOTE="FIipMode"]

Link, what can I say more than great news, and sorry if old.

BD-ROM could be lower i.e. I could source new HP OEM BD-ROM/DVD-RW combo (laptop version) for that amount.
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TheEroica

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#12 TheEroica  Moderator
Member since 2009 • 24501 Posts

face punch

So what youre saying is that it still feels like this to sony, everytime someone buys a Ps3? Ouch!!!

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justhat1

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#13 justhat1
Member since 2009 • 458 Posts

this will serve them for thier next game cycle as far as buisness goes!

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Kashiwaba

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#14 Kashiwaba
Member since 2005 • 8059 Posts

Well they did this to win the formats war and they did win it so its good for them big profits in the future are better than small profits at the present time.

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ogvampire

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#15 ogvampire
Member since 2008 • 9210 Posts

[QUOTE="ogvampire"]

all it says is that sony isnt losing as much money on each ps3 sold as before....

DoomZaW

considering we are 3 years into its life cycle, that is still really bad from a buisness standpoint

thats true... but when you think about it, it means that the consumer is really getting their money's worth

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T-Aldous

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#16 T-Aldous
Member since 2006 • 1244 Posts

Whoever wrote this article forgot a few things; 1, Sony does NOT sell each console to the store for $299, if they did then the store would have to sell it at a higher price to make profit. Sony probably sell each PS3 to the store for $250 or so. 2, Who pays for the shipping cost? If it is Sony who pays then they are losing even more money and if the store pays for the shipping costs then that means they buy each PS3 for even less than I am guessing. Either way, Sony is still losing TONS of money on the PS3. Is this too hard for most people to understand?

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WilliamRLBaker

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#17 WilliamRLBaker
Member since 2006 • 28915 Posts

um...but they were all most breaking even with the original version any ways...then they released the slim and started going 100 dollars in the hole with each system sold....

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Gxgear

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#18 Gxgear
Member since 2003 • 10425 Posts

[QUOTE="AdjacentLives"]

[QUOTE="FIipMode"]

Link, what can I say more than great news, and sorry if old.

Yankees718

So they lose money on each console in the US ?

Cool, now if only cows can stop defending the overhyping

Halo Reach.

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kolkov01

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#19 kolkov01
Member since 2009 • 2350 Posts

[QUOTE="DoomZaW"]

[QUOTE="ogvampire"]

all it says is that sony isnt losing as much money on each ps3 sold as before....

ogvampire

considering we are 3 years into its life cycle, that is still really bad from a buisness standpoint

thats true... but when you think about it, it means that the consumer is really getting their money's worth

provided the end user is interested in the whole package that is
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Burning-Sludge

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#20 Burning-Sludge
Member since 2008 • 4068 Posts

I wonder when Sony is going to break even on the investment. It doesn't look like that is ever going to happen.

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Rza_rectah

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#21 Rza_rectah
Member since 2005 • 3959 Posts
[QUOTE="BuryMe"]

Umm.. Good for them, I guess?

But going this long and only being close to breaking even is just bad business. I'm surprised it's taken them so long

I heard the best selling console of all time took a while too.
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#22 themyth01
Member since 2003 • 13924 Posts

Well they did this to win the formats war and they did win it so its good for them big profits in the future are better than small profits at the present time.

Kashiwaba
Not yet, DVD is still king.
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ActicEdge

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#23 ActicEdge
Member since 2008 • 24492 Posts

For Sony to break even, they need to make 5 billion dollars, that's never happning.

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navyguy21

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#24 navyguy21
Member since 2003 • 17928 Posts

Well they did this to win the formats war and they did win it so its good for them big profits in the future are better than small profits at the present time.

Kashiwaba
lol, what if Digital Dowload take over? (which is where the world is headed)
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Rza_rectah

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#25 Rza_rectah
Member since 2005 • 3959 Posts
[QUOTE="navyguy21"][QUOTE="Kashiwaba"]

Well they did this to win the formats war and they did win it so its good for them big profits in the future are better than small profits at the present time.

lol, what if Digital Dowload take over? (which is where the world is headed)

I hope not I like my game box sets.
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PBSnipes

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#26 PBSnipes
Member since 2007 • 14621 Posts

let me get this straight, sony is going to earn money by selling consoles for less than what it costs to make them? Yeah that will definitely make a profit

DoomZaW

It's called a loss-leader, you sell the console at a loss and make back the difference on licensing fees, accessories and (these days) DLC. With the exception of the Wii virtually every console was sold for a loss during its year or two (at least).

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Burning-Sludge

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#27 Burning-Sludge
Member since 2008 • 4068 Posts

[QUOTE="DoomZaW"]

let me get this straight, sony is going to earn money by selling consoles for less than what it costs to make them? Yeah that will definitely make a profit

PBSnipes

It's called a loss-leader, you sell the console at a loss and make back the difference on licensing fees, accessories and (these days) DLC. With the exception of the Wii virtually every console was sold for a loss during its year or two (at least).

I am not sure that the Nintendo DS has ever been sold at a loss.

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Shinobi120

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#28 Shinobi120
Member since 2004 • 5728 Posts

Whoever wrote this article forgot a few things; 1, Sony does NOT sell each console to the store for $299, if they did then the store would have to sell it at a higher price to make profit. Sony probably sell each PS3 to the store for $250 or so. 2, Who pays for the shipping cost? If it is Sony who pays then they are losing even more money and if the store pays for the shipping costs then that means they buy each PS3 for even less than I am guessing. Either way, Sony is still losing TONS of money on the PS3. Is this too hard for most people to understand?

T-Aldous

Bingo. Sony can't keep losing money on their gaming division forever. They're now coming up at a $5 Billion loss. If this continues to happen, then the PS3 is just going to wind up like the original X-Box in which Sony has to pull support from it. They'll have no choice but to.

For that matter, the only reason why the PS2 had a 10 year lifespan plan was because it was making Sony money, & that more people keep on buying it, as well as more games coming out for it. Plus the only reason why MS has pulled support for the original X-Box was because it was bleeding them dry of their money, 3rd party games weren't selling well on it, & that it wasn't very popular like the PS2 was. Now this gen, it's the other way around with the 360 & PS3.

Now Microsoft has announced a 10 year plan for it, because it's very popular, MS is making money off of each 360 being sold, & more games just keeps coming out for it. The PS3, however, is nowhere near as popular as the PS1 & the PS2.

As a matter of fact, I can see Sony pulling the plug on their 10 year lifespan on the PS3 before MS even does with the 360. Not to mention that unlike Sony, Microsoft has plenty of billions lined up in their pockets. As long as Sony keeps dropping the price of the PS3's in order to play catch up to the 360 in sales, they'll never turn profitable.

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Zero5000X

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#29 Zero5000X
Member since 2004 • 8314 Posts
Well, to be fair console makers make the majority of their money off of software sales (their own games + royalties from third parties). So, because they're losing money on consoles doesn't mean they aren't making money in the end.
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Kashiwaba

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#30 Kashiwaba
Member since 2005 • 8059 Posts

[QUOTE="Kashiwaba"]

Well they did this to win the formats war and they did win it so its good for them big profits in the future are better than small profits at the present time.

navyguy21

lol, what if Digital Dowload take over? (which is where the world is headed)

Too bad DD is far from becoming a standard cuz more than 70% of the world are still using a slow Internet connections and they cant go with DD.

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navyguy21

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#31 navyguy21
Member since 2003 • 17928 Posts

[QUOTE="navyguy21"][QUOTE="Kashiwaba"]

Well they did this to win the formats war and they did win it so its good for them big profits in the future are better than small profits at the present time.

Kashiwaba

lol, what if Digital Dowload take over? (which is where the world is headed)

Too bad DD is far from becoming a standard cuz more than 70% of the world are still using a slow Internet connections and they cant go with DD.

have you watched the new episode of the bonus round on GT? They mentioned that the OnLive technology is being developed to stream tv, and movie content to those with slow connections, kinda like they did with games. 1MB connection is enough to get movies with the technology. IM sure that 90+ % of internet users have AT LEAST that ;)
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Kashiwaba

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#32 Kashiwaba
Member since 2005 • 8059 Posts

[QUOTE="Kashiwaba"]

[QUOTE="navyguy21"] lol, what if Digital Dowload take over? (which is where the world is headed)navyguy21

Too bad DD is far from becoming a standard cuz more than 70% of the world are still using a slow Internet connections and they cant go with DD.

have you watched the new episode of the bonus round on GT? They mentioned that the OnLive technology is being developed to stream tv, and movie content to those with slow connections, kinda like they did with games. 1MB connection is enough to get movies with the technology. IM sure that 90+ % of internet users have AT LEAST that ;)

Well if that worked then it would be nice.

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navyguy21

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#33 navyguy21
Member since 2003 • 17928 Posts

[QUOTE="navyguy21"][QUOTE="Kashiwaba"]

Too bad DD is far from becoming a standard cuz more than 70% of the world are still using a slow Internet connections and they cant go with DD.

Kashiwaba

have you watched the new episode of the bonus round on GT? They mentioned that the OnLive technology is being developed to stream tv, and movie content to those with slow connections, kinda like they did with games. 1MB connection is enough to get movies with the technology. IM sure that 90+ % of internet users have AT LEAST that ;)

Well if that worked then it would be nice.

yea, it would. i wanted to give netflix to a couple of older people i know as gifts, only to find that their connections prevented them from watcing it in HD (they live in remote areas) so i can see where you are coming from. I had to settle for the little SD Roku box for them, it plays neflix in standard def, so they should be ok :P
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BluesKing527

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#34 BluesKing527
Member since 2009 • 441 Posts
Wow so what gonna happen to Sony? What is their plan now?
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ogvampire

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#35 ogvampire
Member since 2008 • 9210 Posts

[QUOTE="ogvampire"]

[QUOTE="DoomZaW"]

considering we are 3 years into its life cycle, that is still really bad from a buisness standpoint

kolkov01

thats true... but when you think about it, it means that the consumer is really getting their money's worth

provided the end user is interested in the whole package that is

well yeah, but in terms of consoles, you are getting your best value with the ps3