PSP, PS3.... Sony's not dying.... but can we admit that the PS namebrand is?

It's not like the PSP and PS3 are doing horrible if you were to look at them by themselves, there is still some interest there, but when compared to the PS1 and PS2, Sony, who onced seemed an invincible, indomitable force in the industry  is starting to seem quite mortal and the chinks in their armor have been exposed.

Cows may not want to admit that the PS3 is failing or flopping, but c'mon guys, can we at aleast admit that the Playstation namebrand is not what it once was? 

Sony as the company might be doing fine, but their gaming division isn't. Been bleeding money for the past 4 quarters, and I seriously doubt any forecasts they make will see it make money for the next year or two. There is a realistic chance that Sony ends up shutting down their gaming division, or ending up like Sega and going software only. They took a huge investment and gamble on the PS3 and it has not been paying off for them, at all.RahnAetas

It's been a few months. Talk about jumping the gun.  

[QUOTE="RahnAetas"]Sony as the company might be doing fine, but their gaming division isn't. Been bleeding money for the past 4 quarters, and I seriously doubt any forecasts they make will see it make money for the next year or two. There is a realistic chance that Sony ends up shutting down their gaming division, or ending up like Sega and going software only. They took a huge investment and gamble on the PS3 and it has not been paying off for them, at all.TekkenMaster606

It's been a few months. Talk about jumping the gun.  

4 quarters.  The last 3 quarters Sony has reported losses from it's gaming division (just over 1 billion dollars).  When the 4th quarter releases are out, it will be a full year of reporting losses (estimated 1.7 billion total for the year).  The company itself is forcasted to make 3.4 billion dollars.  So roughly one *third* of the company's potential profits were consumed by the faulting gaming division.  The people working in their gaming division will be fighting for their lives when the 4th quarter reports come out, when they have to explain to the higher ups, and the investors on how bleeding millions of dollars each month for the next year or two, will turn them profits 5+ years down the road.

[QUOTE="TekkenMaster606"]

[QUOTE="RahnAetas"]Sony as the company might be doing fine, but their gaming division isn't. Been bleeding money for the past 4 quarters, and I seriously doubt any forecasts they make will see it make money for the next year or two. There is a realistic chance that Sony ends up shutting down their gaming division, or ending up like Sega and going software only. They took a huge investment and gamble on the PS3 and it has not been paying off for them, at all.RahnAetas

It's been a few months. Talk about jumping the gun.  

4 quarters.  The last 3 quarters Sony has reported losses from it's gaming division (just over 1 billion dollars).  When the 4th quarter releases are out, it will be a full year of reporting losses (estimated 1.7 billion total for the year).  The company itself is forcasted to make 3.4 billion dollars.  So roughly one *third* of the company's potential profits were consumed by the faulting gaming division.  The people working in their gaming division will be fighting for their lives when the 4th quarter reports come out, when they have to explain to the higher ups, and the investors on how bleeding millions of dollars each month for the next year or two, will turn them profits 5+ years down the road.

[QUOTE="TekkenMaster606"]

[QUOTE="RahnAetas"]Sony as the company might be doing fine, but their gaming division isn't. Been bleeding money for the past 4 quarters, and I seriously doubt any forecasts they make will see it make money for the next year or two. There is a realistic chance that Sony ends up shutting down their gaming division, or ending up like Sega and going software only. They took a huge investment and gamble on the PS3 and it has not been paying off for them, at all.RahnAetas

It's been a few months. Talk about jumping the gun.  

4 quarters.  The last 3 quarters Sony has reported losses from it's gaming division (just over 1 billion dollars).  When the 4th quarter releases are out, it will be a full year of reporting losses (estimated 1.7 billion total for the year).  The company itself is forcasted to make 3.4 billion dollars.  So roughly one *third* of the company's potential profits were consumed by the faulting gaming division.  The people working in their gaming division will be fighting for their lives when the 4th quarter reports come out, when they have to explain to the higher ups, and the investors on how bleeding millions of dollars each month for the next year or two, will turn them profits 5+ years down the road.

Would you guys stop trying to be financial Freaking analisist and just be freaking gamers cause obviously you dont know what your talking about.  If guys want to look up financial data then look up sony for the ps1 and ps2.  They were loses too at first.  THEY ALL ARE!!!   If you think sony is going the way of SEGA then your smoking some crazy stuff.  Your tlaking about SONY and SEGA????  SEGA had 1 really successfull console. SONY has 2 and the ps3 will be the 3rd.  SONY is a much larger company then SEGA so do the math.

It's not like the PSP and PS3 are doing horrible if you were to look at them by themselves, there is still some interest there, but when compared to the PS1 and PS2, Sony, who onced seemed an invincible, indomitable force in the industry is starting to seem quite mortal and the chinks in their armor have been exposed.

Cows may not want to admit that the PS3 is failing or flopping, but c'mon guys, can we at aleast admit that the Playstation namebrand is not what it once was?

jedigemini

The playstation brand went from a 70% #1 market share to DEAD last world wide in less then a year... PSP is getting raped by the ds and hasn't sold any solftware in almsot a year and the ps3 is a disaster so far. With 200 million consoles supposedly sold there is absolutly NO excuse for sony's pathetic performance thus far with the ps3.

[QUOTE="jedigemini"]

It's not like the PSP and PS3 are doing horrible if you were to look at them by themselves, there is still some interest there, but when compared to the PS1 and PS2, Sony, who onced seemed an invincible, indomitable force in the industry is starting to seem quite mortal and the chinks in their armor have been exposed.

Cows may not want to admit that the PS3 is failing or flopping, but c'mon guys, can we at aleast admit that the Playstation namebrand is not what it once was?

Illumination77

The playstation brand went from a 70% #1 market share to DEAD last world wide in less then a year... PSP is getting raped by the ds and hasn't sold any solftware in almsot a year and the ps3 is a disaster so far. With 200 million consoles supposedly sold there is absolutly NO excuse for sony's pathetic performance thus far with the ps3.

The console hasnt even been out a year and we consider it dying? 360 had bogus games for the first year to and people thought it was a flop, but now look at it, its kicking major butt. I think we should alteast wait a year for all the big games come out and then judge.RazMaTaz-1

360 had amazing games for its first year. PDZ, Call of Duty 2 (Which sold 1 milliomn copies on 360 and was thye #1 game all formats, over ps2 titles, for 3 of its first 4 months of release how's resistence comapre with that?), GRAW, Oblivion, Dead or ALive 4 for fighting fans. I could go on. But then I remember none of them are playstation exclusives so that means they're all over ratted garbage.

[QUOTE="RazMaTaz-1"]The console hasnt even been out a year and we consider it dying? 360 had bogus games for the first year to and people thought it was a flop, but now look at it, its kicking major butt. I think we should alteast wait a year for all the big games come out and then judge.Illumination77

360 had amazing games for its first year. PDZ, Call of Duty 2 (Which sold 1 milliomn copies on 360 and was thye #1 game all formats, over ps2 titles, for 3 of its first 4 months of release how's resistence comapre with that?), GRAW, Oblivion, Dead or ALive 4 for fighting fans. I could go on. But then I remember none of them are playstation exclusives so that means they're all over ratted garbage.

I still play the launch games.  They were great!  I don't know what cows are talking about when they say 360 had no good games this time last year.

I completely agree with the TC. What the nay-sayers are ignoring is the fact that the previous Playstation consoles were introduced into the market when the competition was limited (Ninty lost focus, and Sega was financially down). Now the PS3 is struggling because it was launched in the face of fierce competition and Sony was not prepared for the drastic change in the current market trends. The business model of Sony was to sell the PS3 based on name recognition alone which is fine if you launch early with no competition (PS2). But if you launch a system in a generation already in progress, name recognition doesnt amount to nothin when the rival systems has several AAA titles to choose from.

Sony is doing exactly was other companies have done in the past, they lost focus on what made them successful and forgot their target audience.

Atari has done it,

Ninty has done it,

Sega has done it,

What makes Sony and its Playstation so special it doesnt have the possibility to fall?

Also, to the people saying its too early to tell, that bull because this gen has 3 system battling for the top position this gen. In previous generations Sony had time to launch, workout the bugs, and get back on track to be successful because of the lack of competiton and faithfuls willing to wait for Sony. This gen MS and Ninty have taken the market and ran with it. They wont suddenly go half-speed in order to give Sony a chance to regroup. With each step Sony makes to improve itself, MS and Ninty are there to counter that endeavor.

The PS3 is currently the N64 of this gen (a few great games, but overall a failure for the company), just admit the truth and deal with it! Just enjoy the games and hope Sony has a chance to focus on gaming next generation.

Game On...

Sony as the company might be doing fine, but their gaming division isn't. Been bleeding money for the past 4 quarters, and I seriously doubt any forecasts they make will see it make money for the next year or two. There is a realistic chance that Sony ends up shutting down their gaming division, or ending up like Sega and going software only. They took a huge investment and gamble on the PS3 and it has not been paying off for them, at all.RahnAetas

this one year of loss compared to how many past years of gain, one bad year doesn't put a company out and next year will be much better . The gaming division can only be looked at as a success despite this one "bad" year

[QUOTE="RahnAetas"][QUOTE="TekkenMaster606"]

[QUOTE="RahnAetas"]Sony as the company might be doing fine, but their gaming division isn't. Been bleeding money for the past 4 quarters, and I seriously doubt any forecasts they make will see it make money for the next year or two. There is a realistic chance that Sony ends up shutting down their gaming division, or ending up like Sega and going software only. They took a huge investment and gamble on the PS3 and it has not been paying off for them, at all.fuman3

It's been a few months. Talk about jumping the gun.  

4 quarters.  The last 3 quarters Sony has reported losses from it's gaming division (just over 1 billion dollars).  When the 4th quarter releases are out, it will be a full year of reporting losses (estimated 1.7 billion total for the year).  The company itself is forcasted to make 3.4 billion dollars.  So roughly one *third* of the company's potential profits were consumed by the faulting gaming division.  The people working in their gaming division will be fighting for their lives when the 4th quarter reports come out, when they have to explain to the higher ups, and the investors on how bleeding millions of dollars each month for the next year or two, will turn them profits 5+ years down the road.

Would you guys stop trying to be financial Freaking analisist and just be freaking gamers cause obviously you dont know what your talking about.  If guys want to look up financial data then look up sony for the ps1 and ps2.  They were loses too at first.  THEY ALL ARE!!!   If you think sony is going the way of SEGA then your smoking some crazy stuff.  Your tlaking about SONY and SEGA????  SEGA had 1 really successfull console. SONY has 2 and the ps3 will be the 3rd.  SONY is a much larger company then SEGA so do the math.

To read your rant a person would assume that Sony was financially stable these days.....they are not!!! Why do you think the PS3 was created with its current configuration, for gamers? Sony could have easily created a system as a gaming console with features to enhance gaming instead they needed a product to rejuvenate Sony as a whole (Blu-ray becoming standard, and making Cell mainstream). Yes launch consoles are sold at a loss, but Sony was a different company 10 years ago!!! After multiple lawsuits, bad PR, and a partridge and a pear tree, Sony has been borrowing money just to stay afloat.

So the financial update that you tried to bash was indeed valid!!!

Game On...

[QUOTE="RahnAetas"][QUOTE="TekkenMaster606"]

[QUOTE="RahnAetas"]Sony as the company might be doing fine, but their gaming division isn't. Been bleeding money for the past 4 quarters, and I seriously doubt any forecasts they make will see it make money for the next year or two. There is a realistic chance that Sony ends up shutting down their gaming division, or ending up like Sega and going software only. They took a huge investment and gamble on the PS3 and it has not been paying off for them, at all.fuman3

It's been a few months. Talk about jumping the gun.

4 quarters. The last 3 quarters Sony has reported losses from it's gaming division (just over 1 billion dollars). When the 4th quarter releases are out, it will be a full year of reporting losses (estimated 1.7 billion total for the year). The company itself is forcasted to make 3.4 billion dollars. So roughly one *third* of the company's potential profits were consumed by the faulting gaming division. The people working in their gaming division will be fighting for their lives when the 4th quarter reports come out, when they have to explain to the higher ups, and the investors on how bleeding millions of dollars each month for the next year or two, will turn them profits 5+ years down the road.

Would you guys stop trying to be financial Freaking analisist and just be freaking gamers cause obviously you dont know what your talking about. If guys want to look up financial data then look up sony for the ps1 and ps2. They were loses too at first. THEY ALL ARE!!! If you think sony is going the way of SEGA then your smoking some crazy stuff. Your tlaking about SONY and SEGA???? SEGA had 1 really successfull console. SONY has 2 and the ps3 will be the 3rd. SONY is a much larger company then SEGA so do the math.

 See the problem is that Sony is a massive corperation, they have to think about all of their divisions, and big corperations know how to make money, and how to stop losing it, they cut off the hand to save the rest of the body, i'm not saying that they will for sure, but if the sales don't pick up, they will, becuase when one part of a company starts looking bad, people lose faith, and when people lose faith, stocks lose thier value. You may say that all of the financial talk has nothing to with the topic, but it does, you forget that if people outside the gaming public don't want to support the company, they will have no funding and go out of business. Sure the PS3 and PSP could end up doing well, but the way things are going, it doesn't seem that likely. Now you could say that none of the PS consoles have sold well from the start, but they didn't have the problems that the PS3 has, and they didn't cost you $600 for theconsole with a limited number of "good" games, theyhad a pretty good lineup from the start. point is, if you don't accept even the chance that Sony will not do well, you are fooling yourself, I personally have always liked Nintendo, but through the last two generations I had my doubts about how well they were doing, there was always that chance that they could lose it all, it never happpened, but it could have.

The PS3 is not failing, and the PS3 will most likely end this generation outselling the 360.

The PS3 is not failing, and the PS3 will most likely end this generation outselling the 360.

BioShockOwnz

The PS3 is failing, where have you been this gen? PR hype about "the fastest selling console" blah blah means nothing when the gaming industry as a whole has labeled the PS3 a bust. Now that the system has launched in all major regions, sales are down all across the board. Sony has recently axed the 20gb version of the PS3 due to lack of interest and that makes you all warm and fuzzy to think it will outsell the 360?!?!? Its one thing to have a console preference (we all have them), but to be completely dillusional for the sake of a console is rediculous.

Game On...

[QUOTE="BioShockOwnz"]

The PS3 is not failing, and the PS3 will most likely end this generation outselling the 360.

FatalDomain

The PS3 is failing, where have you been this gen? PR hype about "the fastest selling console" blah blah means nothing when the gaming industry as a whole has labeled the PS3 a bust. Now that the system has launched in all major regions, sales are down all across the board. Sony has recently axed the 20gb version of the PS3 due to lack of interest and that makes you all warm and fuzzy to think it will outsell the 360?!?!? Its one thing to have a console preference (we all have them), but to be completely dillusional for the sake of a console is rediculous.

Game On...

I don't have a console preference or an agenda. Most label me a lemming on this board. I am just being honest. The PS3 has sold more units in it's first 5 months in the market then the PS2 and 360. To already call something a failure or a bust at such an early date when it is doing absolutely fine at retail is insane.

so many people are just stupid, they read a 360 or wii magazine saying the ps3 is dead and call it fact. and the ps3 magazine will tell you its selling faster than other consoles. whos right? who gives a fliying F***. and dont say the psp is owned by the ds becouse sony went into a handheld market and took out 30%. id say the ds got ownedhip-hop-cola

[QUOTE="fuman3"][QUOTE="RahnAetas"][QUOTE="TekkenMaster606"]

[QUOTE="RahnAetas"]Sony as the company might be doing fine, but their gaming division isn't. Been bleeding money for the past 4 quarters, and I seriously doubt any forecasts they make will see it make money for the next year or two. There is a realistic chance that Sony ends up shutting down their gaming division, or ending up like Sega and going software only. They took a huge investment and gamble on the PS3 and it has not been paying off for them, at all.jimjam198

It's been a few months. Talk about jumping the gun.

4 quarters. The last 3 quarters Sony has reported losses from it's gaming division (just over 1 billion dollars). When the 4th quarter releases are out, it will be a full year of reporting losses (estimated 1.7 billion total for the year). The company itself is forcasted to make 3.4 billion dollars. So roughly one *third* of the company's potential profits were consumed by the faulting gaming division. The people working in their gaming division will be fighting for their lives when the 4th quarter reports come out, when they have to explain to the higher ups, and the investors on how bleeding millions of dollars each month for the next year or two, will turn them profits 5+ years down the road.

Would you guys stop trying to be financial Freaking analisist and just be freaking gamers cause obviously you dont know what your talking about. If guys want to look up financial data then look up sony for the ps1 and ps2. They were loses too at first. THEY ALL ARE!!! If you think sony is going the way of SEGA then your smoking some crazy stuff. Your tlaking about SONY and SEGA???? SEGA had 1 really successfull console. SONY has 2 and the ps3 will be the 3rd. SONY is a much larger company then SEGA so do the math.

 See the problem is that Sony is a massive corperation, they have to think about all of their divisions, and big corperations know how to make money, and how to stop losing it, they cut off the hand to save the rest of the body, i'm not saying that they will for sure, but if the sales don't pick up, they will, becuase when one part of a company starts looking bad, people lose faith, and when people lose faith, stocks lose thier value. You may say that all of the financial talk has nothing to with the topic, but it does, you forget that if people outside the gaming public don't want to support the company, they will have no funding and go out of business. Sure the PS3 and PSP could end up doing well, but the way things are going, it doesn't seem that likely. Now you could say that none of the PS consoles have sold well from the start, but they didn't have the problems that the PS3 has, and they didn't cost you $600 for theconsole with a limited number of "good" games, theyhad a pretty good lineup from the start. point is, if you don't accept even the chance that Sony will not do well, you are fooling yourself, I personally have always liked Nintendo, but through the last two generations I had my doubts about how well they were doing, there was always that chance that they could lose it all, it never happpened, but it could have.

Exactly.  People are dillusional if they think Sony will keep supporing the PS3 if it continues to cause them millions of dollars in losses month after month.  They will very likely drop support for the PS3 if they can't show themselves to at least get a decent sized chunk of the console market.  They are losing developer support, their PR is miserable, their Europe launch turned from the fastest selling to the fastest drop in sales ever.

After this year, Sony's gaming division will have to recouperate almost 2 billion dollars in losses before they can start even to think about making a profit on the PS3.  If the trend of money loss continues throughout the next year, which it most likely will, they will be down to 3-4 billion dollars in loss to recouperate.  Which means it's going to be 3+ years before they can turn a profit, and that's an ideal situation.  A conservative estimate would put it at 5+ years before they see profits, if ever.

[QUOTE="jimjam198"][QUOTE="fuman3"][QUOTE="RahnAetas"][QUOTE="TekkenMaster606"]

[QUOTE="RahnAetas"]Sony as the company might be doing fine, but their gaming division isn't. Been bleeding money for the past 4 quarters, and I seriously doubt any forecasts they make will see it make money for the next year or two. There is a realistic chance that Sony ends up shutting down their gaming division, or ending up like Sega and going software only. They took a huge investment and gamble on the PS3 and it has not been paying off for them, at all.RahnAetas

It's been a few months. Talk about jumping the gun.

4 quarters. The last 3 quarters Sony has reported losses from it's gaming division (just over 1 billion dollars). When the 4th quarter releases are out, it will be a full year of reporting losses (estimated 1.7 billion total for the year). The company itself is forcasted to make 3.4 billion dollars. So roughly one *third* of the company's potential profits were consumed by the faulting gaming division. The people working in their gaming division will be fighting for their lives when the 4th quarter reports come out, when they have to explain to the higher ups, and the investors on how bleeding millions of dollars each month for the next year or two, will turn them profits 5+ years down the road.

Would you guys stop trying to be financial Freaking analisist and just be freaking gamers cause obviously you dont know what your talking about. If guys want to look up financial data then look up sony for the ps1 and ps2. They were loses too at first. THEY ALL ARE!!! If you think sony is going the way of SEGA then your smoking some crazy stuff. Your tlaking about SONY and SEGA???? SEGA had 1 really successfull console. SONY has 2 and the ps3 will be the 3rd. SONY is a much larger company then SEGA so do the math.

See the problem is that Sony is a massive corperation, they have to think about all of their divisions, and big corperations know how to make money, and how to stop losing it, they cut off the hand to save the rest of the body, i'm not saying that they will for sure, but if the sales don't pick up, they will, becuase when one part of a company starts looking bad, people lose faith, and when people lose faith, stocks lose thier value. You may say that all of the financial talk has nothing to with the topic, but it does, you forget that if people outside the gaming public don't want to support the company, they will have no funding and go out of business. Sure the PS3 and PSP could end up doing well, but the way things are going, it doesn't seem that likely. Now you could say that none of the PS consoles have sold well from the start, but they didn't have the problems that the PS3 has, and they didn't cost you $600 for theconsole with a limited number of "good" games, theyhad a pretty good lineup from the start. point is, if you don't accept even the chance that Sony will not do well, you are fooling yourself, I personally have always liked Nintendo, but through the last two generations I had my doubts about how well they were doing, there was always that chance that they could lose it all, it never happpened, but it could have.

Exactly. People are dillusional if they think Sony will keep supporing the PS3 if it continues to cause them millions of dollars in losses month after month. They will very likely drop support for the PS3 if they can't show themselves to at least get a decent sized chunk of the console market. They are losing developer support, their PR is miserable, their Europe launch turned from the fastest selling to the fastest drop in sales ever.

After this year, Sony's gaming division will have to recouperate almost 2 billion dollars in losses before they can start even to think about making a profit on the PS3. If the trend of money loss continues throughout the next year, which it most likely will, they will be down to 3-4 billion dollars in loss to recouperate. Which means it's going to be 3+ years before they can turn a profit, and that's an ideal situation. A conservative estimate would put it at 5+ years before they see profits, if ever.

Why do you people think they'll cut off support, companies dont spend hundreds of millions of dollars on R&D, make billions of dollars on previous versions of the product, and then put it out for a price point that loses them more than 100 dollars per unit sold, then expect to turn a profit the first 6 months.

 Sony is not going to say, "oh, well, it's been 6 months, and... we've sold 3 million units, more than ps1 or ps2 did there first 6 months, but... looks like we're gonna fail, looks like a bust, we failed, awell, lets just drop support and not worry about all the money we've invested into the playstation 3, blu-ray, and the cell, screw it, STOPING PS3  PRODUCTION... oh, and those games we've spent 10's of millions of dollars on, forget those too, fire the employees, and scrap them all."

Looks like lems/sheep arent better at business than Sony, like they seem to think. 

It's not like the PSP and PS3 are doing horrible if you were to look at them by themselves, there is still some interest there, but when compared to the PS1 and PS2, Sony, who onced seemed an invincible, indomitable force in the industry  is starting to seem quite mortal and the chinks in their armor have been exposed.

Cows may not want to admit that the PS3 is failing or flopping, but c'mon guys, can we at aleast admit that the Playstation namebrand is not what it once was? 

jedigemini

your absolutely right. i could agree with you more

I completely agree with the TC. What the nay-sayers are ignoring is the fact that the previous Playstation consoles were introduced into the market when the competition was limited (Ninty lost focus, and Sega was financially down). Now the PS3 is struggling because it was launched in the face of fierce competition and Sony was not prepared for the drastic change in the current market trends. The business model of Sony was to sell the PS3 based on name recognition alone which is fine if you launch early with no competition (PS2). But if you launch a system in a generation already in progress, name recognition doesnt amount to nothin when the rival systems has several AAA titles to choose from.

Sony is doing exactly was other companies have done in the past, they lost focus on what made them successful and forgot their target audience.

Atari has done it,

Ninty has done it,

Sega has done it,

What makes Sony and its Playstation so special it doesnt have the possibility to fall?

Also, to the people saying its too early to tell, that bull because this gen has 3 system battling for the top position this gen. In previous generations Sony had time to launch, workout the bugs, and get back on track to be successful because of the lack of competiton and faithfuls willing to wait for Sony. This gen MS and Ninty have taken the market and ran with it. They wont suddenly go half-speed in order to give Sony a chance to regroup. With each step Sony makes to improve itself, MS and Ninty are there to counter that endeavor.

The PS3 is currently the N64 of this gen (a few great games, but overall a failure for the company), just admit the truth and deal with it! Just enjoy the games and hope Sony has a chance to focus on gaming next generation.

Game On...

FatalDomain

QFT 

Very well said, including the fact that its bleeding exclusives and that was what previous buyers bought the console for. The PS1 and PS2  had more exclusives than any other console ever, but now its just losing too many.

I'm not going to tell you who will win this generation, but I will say that the PS brand has lost its power. It carries some weight, but where SCE went wrong was relying on it. They just put too much pressure on it, through bad PR.

Lets be honest, the PS brand was built on casuals and the casuals won't be interested, when there are cheaper alternatives.

I can't guess if they will come back from it, but its quite the hole they have dug themselves.

[QUOTE="RahnAetas"][QUOTE="jimjam198"][QUOTE="fuman3"][QUOTE="RahnAetas"][QUOTE="TekkenMaster606"]

[QUOTE="RahnAetas"]Sony as the company might be doing fine, but their gaming division isn't. Been bleeding money for the past 4 quarters, and I seriously doubt any forecasts they make will see it make money for the next year or two. There is a realistic chance that Sony ends up shutting down their gaming division, or ending up like Sega and going software only. They took a huge investment and gamble on the PS3 and it has not been paying off for them, at all.cheatymcshifty

It's been a few months. Talk about jumping the gun.

4 quarters. The last 3 quarters Sony has reported losses from it's gaming division (just over 1 billion dollars). When the 4th quarter releases are out, it will be a full year of reporting losses (estimated 1.7 billion total for the year). The company itself is forcasted to make 3.4 billion dollars. So roughly one *third* of the company's potential profits were consumed by the faulting gaming division. The people working in their gaming division will be fighting for their lives when the 4th quarter reports come out, when they have to explain to the higher ups, and the investors on how bleeding millions of dollars each month for the next year or two, will turn them profits 5+ years down the road.

Would you guys stop trying to be financial Freaking analisist and just be freaking gamers cause obviously you dont know what your talking about. If guys want to look up financial data then look up sony for the ps1 and ps2. They were loses too at first. THEY ALL ARE!!! If you think sony is going the way of SEGA then your smoking some crazy stuff. Your tlaking about SONY and SEGA???? SEGA had 1 really successfull console. SONY has 2 and the ps3 will be the 3rd. SONY is a much larger company then SEGA so do the math.

See the problem is that Sony is a massive corperation, they have to think about all of their divisions, and big corperations know how to make money, and how to stop losing it, they cut off the hand to save the rest of the body, i'm not saying that they will for sure, but if the sales don't pick up, they will, becuase when one part of a company starts looking bad, people lose faith, and when people lose faith, stocks lose thier value. You may say that all of the financial talk has nothing to with the topic, but it does, you forget that if people outside the gaming public don't want to support the company, they will have no funding and go out of business. Sure the PS3 and PSP could end up doing well, but the way things are going, it doesn't seem that likely. Now you could say that none of the PS consoles have sold well from the start, but they didn't have the problems that the PS3 has, and they didn't cost you $600 for theconsole with a limited number of "good" games, theyhad a pretty good lineup from the start. point is, if you don't accept even the chance that Sony will not do well, you are fooling yourself, I personally have always liked Nintendo, but through the last two generations I had my doubts about how well they were doing, there was always that chance that they could lose it all, it never happpened, but it could have.

Exactly. People are dillusional if they think Sony will keep supporing the PS3 if it continues to cause them millions of dollars in losses month after month. They will very likely drop support for the PS3 if they can't show themselves to at least get a decent sized chunk of the console market. They are losing developer support, their PR is miserable, their Europe launch turned from the fastest selling to the fastest drop in sales ever.

After this year, Sony's gaming division will have to recouperate almost 2 billion dollars in losses before they can start even to think about making a profit on the PS3. If the trend of money loss continues throughout the next year, which it most likely will, they will be down to 3-4 billion dollars in loss to recouperate. Which means it's going to be 3+ years before they can turn a profit, and that's an ideal situation. A conservative estimate would put it at 5+ years before they see profits, if ever.

Why do you people think they'll cut off support, companies dont spend hundreds of millions of dollars on R&D, make billions of dollars on previous versions of the product, and then put it out for a price point that loses them more than 100 dollars per unit sold, then expect to turn a profit the first 6 months.

 Sony is not going to say, "oh, well, it's been 6 months, and... we've sold 3 million units, more than ps1 or ps2 did there first 6 months, but... looks like we're gonna fail, looks like a bust, we failed, awell, lets just drop support and not worry about all the money we've invested into the playstation 3, blu-ray, and the cell, screw it, STOPING PS3  PRODUCTION... oh, and those games we've spent 10's of millions of dollars on, forget those too, fire the employees, and scrap them all."

Looks like lems/sheep arent better at business than Sony, like they seem to think. 

That might have been their initial plan, but that plan was dependant on the PS3 doing as well, or better than the PS2.  Nothing in the market recently has shown that will be the case.  The Wii is far outpacing the PS3, and the PS3 is *not* closing the gap between itself and the 360.  It's public relations is dismil, and you have people from developers to gamers chastizing the PS3 for a myraid of reasons. 

Sony will not make money on the PS3 if it does not sell.  In addtion, they won't even make money if it *does* sell because they are forced to take losses on each unit sold.  When it comes time for the Sony executives to make a hard decision, the gaming department will have a hard time selling themselves.  They will have to sell to Sony that if they take another few years of losses, that in the long run they *might* make a profit. 

Unlike Microsoft, which can soak up losses easily, and unlike Nintendo which makes a profit each time around, Sony isn't making profit, and they can't soak up thoses losses.

[QUOTE="cheatymcshifty"][QUOTE="RahnAetas"][QUOTE="jimjam198"][QUOTE="fuman3"][QUOTE="RahnAetas"][QUOTE="TekkenMaster606"]

[QUOTE="RahnAetas"]Sony as the company might be doing fine, but their gaming division isn't. Been bleeding money for the past 4 quarters, and I seriously doubt any forecasts they make will see it make money for the next year or two. There is a realistic chance that Sony ends up shutting down their gaming division, or ending up like Sega and going software only. They took a huge investment and gamble on the PS3 and it has not been paying off for them, at all.RahnAetas

It's been a few months. Talk about jumping the gun.

4 quarters. The last 3 quarters Sony has reported losses from it's gaming division (just over 1 billion dollars). When the 4th quarter releases are out, it will be a full year of reporting losses (estimated 1.7 billion total for the year). The company itself is forcasted to make 3.4 billion dollars. So roughly one *third* of the company's potential profits were consumed by the faulting gaming division. The people working in their gaming division will be fighting for their lives when the 4th quarter reports come out, when they have to explain to the higher ups, and the investors on how bleeding millions of dollars each month for the next year or two, will turn them profits 5+ years down the road.

Would you guys stop trying to be financial Freaking analisist and just be freaking gamers cause obviously you dont know what your talking about. If guys want to look up financial data then look up sony for the ps1 and ps2. They were loses too at first. THEY ALL ARE!!! If you think sony is going the way of SEGA then your smoking some crazy stuff. Your tlaking about SONY and SEGA???? SEGA had 1 really successfull console. SONY has 2 and the ps3 will be the 3rd. SONY is a much larger company then SEGA so do the math.

See the problem is that Sony is a massive corperation, they have to think about all of their divisions, and big corperations know how to make money, and how to stop losing it, they cut off the hand to save the rest of the body, i'm not saying that they will for sure, but if the sales don't pick up, they will, becuase when one part of a company starts looking bad, people lose faith, and when people lose faith, stocks lose thier value. You may say that all of the financial talk has nothing to with the topic, but it does, you forget that if people outside the gaming public don't want to support the company, they will have no funding and go out of business. Sure the PS3 and PSP could end up doing well, but the way things are going, it doesn't seem that likely. Now you could say that none of the PS consoles have sold well from the start, but they didn't have the problems that the PS3 has, and they didn't cost you $600 for theconsole with a limited number of "good" games, theyhad a pretty good lineup from the start. point is, if you don't accept even the chance that Sony will not do well, you are fooling yourself, I personally have always liked Nintendo, but through the last two generations I had my doubts about how well they were doing, there was always that chance that they could lose it all, it never happpened, but it could have.

Exactly. People are dillusional if they think Sony will keep supporing the PS3 if it continues to cause them millions of dollars in losses month after month. They will very likely drop support for the PS3 if they can't show themselves to at least get a decent sized chunk of the console market. They are losing developer support, their PR is miserable, their Europe launch turned from the fastest selling to the fastest drop in sales ever.

After this year, Sony's gaming division will have to recouperate almost 2 billion dollars in losses before they can start even to think about making a profit on the PS3. If the trend of money loss continues throughout the next year, which it most likely will, they will be down to 3-4 billion dollars in loss to recouperate. Which means it's going to be 3+ years before they can turn a profit, and that's an ideal situation. A conservative estimate would put it at 5+ years before they see profits, if ever.

Why do you people think they'll cut off support, companies dont spend hundreds of millions of dollars on R&D, make billions of dollars on previous versions of the product, and then put it out for a price point that loses them more than 100 dollars per unit sold, then expect to turn a profit the first 6 months.

Sony is not going to say, "oh, well, it's been 6 months, and... we've sold 3 million units, more than ps1 or ps2 did there first 6 months, but... looks like we're gonna fail, looks like a bust, we failed, awell, lets just drop support and not worry about all the money we've invested into the playstation 3, blu-ray, and the cell, screw it, STOPING PS3 PRODUCTION... oh, and those games we've spent 10's of millions of dollars on, forget those too, fire the employees, and scrap them all."

Looks like lems/sheep arent better at business than Sony, like they seem to think.

That might have been their initial plan, but that plan was dependant on the PS3 doing as well, or better than the PS2. Nothing in the market recently has shown that will be the case. The Wii is far outpacing the PS3, and the PS3 is *not* closing the gap between itself and the 360. It's public relations is dismil, and you have people from developers to gamers chastizing the PS3 for a myraid of reasons.

Sony will not make money on the PS3 if it does not sell. In addtion, they won't even make money if it *does* sell because they are forced to take losses on each unit sold. When it comes time for the Sony executives to make a hard decision, the gaming department will have a hard time selling themselves. They will have to sell to Sony that if they take another few years of losses, that in the long run they *might* make a profit.

Unlike Microsoft, which can soak up losses easily, and unlike Nintendo which makes a profit each time around, Sony isn't making profit, and they can't soak up thoses losses.

Good response, but sony isint full of idiots, and business like profits, weather it's in 2 years or today, they know it's an investment, just like MS does, except sony actually has turned a profit in the past, rather than lost billions of dollars in the video games industry.

And, no matter what happens, they WONT drop out, and just call it quits, even if ps3 for some reason failed miserably (which, really, theres almost no chance of, the only systems that have truely failed have done so because of a lack of games, ps3 has many more released/slated than any failed system, not to mention the biggest name brand in videogames) they would ride this generation out, still cementing Blu-ray as the format war victor, pushing the cell, and getting a return on there investements into R&D of the playstation.

People saying "ps3 is teh failz, sony will pull it soon" have no business sense, and are blind fanboys, the absolute worst could possibly happen (to any of the 3 companies, actually) is that they wont make a console next generation, absolutly worst case (for that companies video game division).