Sony Loses 3.32 billion On PS3 In 2 Years

Cow has stated several times in the past that the original XBox has lost 7 and even 8 billion during it 5 years on the market. That couldn't be further from the truth. It has lost almost 5 billion in 5 years. It lost 4 billion in it's first 4 years and a little less then a billion in it's final 5th year. Sure, that's a lot, but since M$ makes about 40 billion in revenue each year, it hasn't hurt them that much. Since they are finally out of the RED with the new XBox 360, things are looking up.

http://www.joystiq.com/2005/09/26/forbes-xbox-lost-microsoft-4-billion-and-counting/

Now, lets look at Sony. They released a $499 and $599 PS3 in 2006, which costed them $800 to make and immediately was losing $200-$300 on every PS3 sold. Before the systems were releaesd Sony was boasting that the systems would sell even if there were no games for it. Even though they did sell a large chuck of their PS3 during the holidays, many gamers who bought them were trying to sell them on EBay for profit. When they found out that people weren't going to pay $800-$1500 for the overpriced, overhyped system, they returned them to Gamestop, Wal-Mart and Best Buy. http://kotaku.com/gaming/ps3/some-scalpers-give-up-return-ps3s-to-stores-224386.php

Now we find out from Sony that they have lossed more then 3.32 billion on the PS3 in less then 2yrs. What!?!?! They are losing more money on the PS3 in less time then the XBox ever did. They lossed 2.16 billion their fiscal 2007 and 1.16 billion their fiscal 2008. How much will then lose in their fiscal 2009? Having 2 price drops in less then 6 months probably didn't help them either. Even as I type this Sony continues to lose money on every PS3 sold. With M$ ready to drop their price again at this years E3, how will Sony counter? Having the 80GB MGS4 bundle is great, but they are losing money on those as well.

http://www.gamedaily.com/articles/news/ps3-has-cost-sony-332-billion-so-far/?biz=1

Yes, we know the PS3 is selling better today and is actually starting to catch the XBox 360, but Sony is losing billions in doing so. Even though they are selling more hardware, the Wii and XBox 360 is still killing them in software sales worldwide. We all know that Sony, Nintendo & M$ make more money from software, not hardware. Why do you think Microsoft is out of the RED now? When you have over 40 titles that have sold over a million copies each, you make serious profits.

http://vgchartz.com/worldtotals.php?name=&console=X360&publisher=&sort=Total

So how can Sony turn their woes around and actually start earning some profits from the PS3? Discuss.

But unlike the original Xbox, the Playstation 3 is set to earn profits this year instead of you know... never. And the sales from the PS2 and PSP is still helping shrink the revenue gap.

Also, the MGS still hasn't recouped all the losses from the 6th Generation, so while they're making profit their overall foray into the thunderous gaming market has been a non-profitable venture... so far.

Also, the MGS still hasn't recouped all the losses from the 6th Generation, so while they're making profit their overall foray into the thunderous gaming market has been a non-profitable venture... so far.

thrones

You know the Dreamcast also had an exclusive AAA and as well as Shenmue . We know how that turned out.

[QUOTE="thrones"]

Also, the MGS still hasn't recouped all the losses from the 6th Generation, so while they're making profit their overall foray into the thunderous gaming market has been a non-profitable venture... so far.

AtrumRegina

You know the Dreamcast also had an exclusive AAA and as well as Shenmue . We know how that turned out.

I don't really see how Sony losing that much money is such a bad thing... to us at least...

If anything the money they were losing on each console is a good thing to us... DISCOUNTS!
Everyone likes expensive stuff for cheap. :)

But unlike the original Xbox, the Playstation 3 is set to earn profits this year instead of you know... never. And the sales from the PS2 and PSP is still helping shrink the revenue gap.

Also, the MGS still hasn't recouped all the losses from the 6th Generation, so while they're making profit their overall foray into the thunderous gaming market has been a non-profitable venture... so far.

thrones

Sony isn't going to make any profits off the PS3 this year. They are still lossing money on every PS3 sold. Maybe in 2009 they'll start making some money back, but not this year.

Cow has stated several times in the past that the original XBox has lost 7 and even 8 billion during it 5 years on the market. That couldn't be further from the truth. It has lost almost 5 billion in 5 years. It lost 4 billion in it's first 4 years and a little less then a billion in it's final 5th year. Sure, that's a lot, but since M$ makes about 40 billion in revenue each year, it hasn't hurt them that much. Since they are finally out of the RED with the new XBox 360, things are looking up.

http://www.joystiq.com/2005/09/26/forbes-xbox-lost-microsoft-4-billion-and-counting/

Now, lets look at Sony. They released a $499 and $599 PS3 in 2006, which costed them $800 to make and immediately was losing $200-$300 on every PS3 sold. Before the systems were releaesd Sony was boasting that the systems would sell even if there were no games for it. Even though they did sell a large chuck of their PS3 during the holidays, many gamers who bought them were trying to sell them on EBay for profit. When they found out that people weren't going to pay $800-$1500 for the overpriced, overhyped system, they returned them to Gamestop, Wal-Mart and Best Buy. http://kotaku.com/gaming/ps3/some-scalpers-give-up-return-ps3s-to-stores-224386.php

Now we find out from Sony that they have lossed more then 3.32 billion on the PS3 in less then 2yrs. What!?!?! They are losing more money on the PS3 in less time then the XBox ever did. They lossed 2.16 billion their fiscal 2007 and 1.16 billion their fiscal 2008. How much will then lose in their fiscal 2009? Having 2 price drops in less then 6 months probably didn't help them either. Even as I type this Sony continues to lose money on every PS3 sold. With M$ ready to drop their price again at this years E3, how will Sony counter? Having the 80GB MGS4 bundle is great, but they are losing money on those as well.

http://www.gamedaily.com/articles/news/ps3-has-cost-sony-332-billion-so-far/?biz=1

Yes, we know the PS3 is selling better today and is actually starting to catch the XBox 360, but Sony is losing billions in doing so. Even though they are selling more hardware, the Wii and XBox 360 is still killing them in software sales worldwide. We all know that Sony, Nintendo & M$ make more money from software, not hardware. Why do you think Microsoft is out of the RED now? When you have over 40 titles that have sold over a million copies each, you make serious profits.

http://vgchartz.com/worldtotals.php?name=&console=X360&publisher=&sort=Total

So how can Sony turn their woes around and actually start earning some profits from the PS3? Discuss.

XanderZane

good argument, no spiteful remarks, plenty of links to back it up and no walls of text. All in easy, readable chuncks.

c'mon system wars, I want to see more of this!! :P

[QUOTE="thrones"]

But unlike the original Xbox, the Playstation 3 is set to earn profits this year instead of you know... never. And the sales from the PS2 and PSP is still helping shrink the revenue gap.

Also, the MGS still hasn't recouped all the losses from the 6th Generation, so while they're making profit their overall foray into the thunderous gaming market has been a non-profitable venture... so far.

XanderZane

Sony isn't going to make any profits off the PS3 this year. They are still lossing money on every PS3 sold. Maybe in 2009 they'll start making some money back, but not this year.

Sony is a big boy, he can manage.110million

Sony is obviously a she.

[QUOTE="110million"]Sony is a big boy, he can manage.thrones

Sony is obviously a she.

Quite possibly, I've never seen Sony in real life.

But with Game Publishing, Accesories, Ps2 and PsP i'm sure the game division as whole is turning in a profit... angelkimne

[QUOTE="XanderZane"][QUOTE="thrones"]

But unlike the original Xbox, the Playstation 3 is set to earn profits this year instead of you know... never. And the sales from the PS2 and PSP is still helping shrink the revenue gap.

Also, the MGS still hasn't recouped all the losses from the 6th Generation, so while they're making profit their overall foray into the thunderous gaming market has been a non-profitable venture... so far.

thrones

Sony isn't going to make any profits off the PS3 this year. They are still lossing money on every PS3 sold. Maybe in 2009 they'll start making some money back, but not this year.

Everyone but you knows that Sony has stated that they're now turning a profit since May 2008. Playstation is a proven brand unlike Xbox that was unproven.

http://www.digitalspy.co.uk/gaming/a85296/sony-nearly-making-a-profit-with-ps3.html?rss

Everyone but you knows that Sony has stated that they're now turning a profit since May 2008. Playstation is a proven brand unlike Xbox that was unproven.patriots7672

http://uk.gamespot.com/news/6185395.html

[QUOTE="XanderZane"][QUOTE="thrones"]

But unlike the original Xbox, the Playstation 3 is set to earn profits this year instead of you know... never. And the sales from the PS2 and PSP is still helping shrink the revenue gap.

Also, the MGS still hasn't recouped all the losses from the 6th Generation, so while they're making profit their overall foray into the thunderous gaming market has been a non-profitable venture... so far.

thrones

Sony isn't going to make any profits off the PS3 this year. They are still lossing money on every PS3 sold. Maybe in 2009 they'll start making some money back, but not this year.

We'll see. I'm not sure how unless it from the software and accessories they've sold on the PS3. Sony as a company will make a profit, but their PS3 division shouldn't. We'll know next year. It's not impossible. If Sony doesn't drop their price, by the end of the year they should be making some money on their PS3's or at least breaking even. From what I've heard, they are losing probably between $40-$60 on every PS3 sold. They've cut the manufacturing cost of the PS3 almost in half in less then 2 years, which is pretty huge. Remember, Blu-Ray costed about $1000-$1200 for a player when it first came out. Now they are $600 or less already. We'll see what happens at the end of the year.

http://www.amazon.com/s/ref=nb_ss_gw?url=search-alias%3Daps&field-keywords=Blu-Ray+player&x=19&y=13

[QUOTE="thrones"][QUOTE="XanderZane"][QUOTE="thrones"]

But unlike the original Xbox, the Playstation 3 is set to earn profits this year instead of you know... never. And the sales from the PS2 and PSP is still helping shrink the revenue gap.

Also, the MGS still hasn't recouped all the losses from the 6th Generation, so while they're making profit their overall foray into the thunderous gaming market has been a non-profitable venture... so far.

XanderZane

Sony isn't going to make any profits off the PS3 this year. They are still lossing money on every PS3 sold. Maybe in 2009 they'll start making some money back, but not this year.

We'll see. I'm not sure how unless it from the software and accessories they've sold on the PS3. Sony as a company will make a profit, but their PS3 division won't. We'll know next year.

[QUOTE="patriots7672"]Everyone but you knows that Sony has stated that they're now turning a profit since May 2008. Playstation is a proven brand unlike Xbox that was unproven.thrones

They're actually making a profit on their PS3s since May 2008 be it a small one. They'll make back all their lost money and more from here on out.

[QUOTE="thrones"]

[QUOTE="patriots7672"]Everyone but you knows that Sony has stated that they're now turning a profit since May 2008. Playstation is a proven brand unlike Xbox that was unproven.patriots7672

They're actually making a profit on their PS3s since May 2008 be it a small one. They'll make back all their lost money and more from here on out.

[QUOTE="thrones"]

[QUOTE="patriots7672"]Everyone but you knows that Sony has stated that they're now turning a profit since May 2008. Playstation is a proven brand unlike Xbox that was unproven.patriots7672

They're actually making a profit on their PS3s since May 2008 be it a small one. They'll make back all their lost money and more from here on out.

[QUOTE="patriots7672"][QUOTE="thrones"]

[QUOTE="patriots7672"]Everyone but you knows that Sony has stated that they're now turning a profit since May 2008. Playstation is a proven brand unlike Xbox that was unproven.angelkimne

They're actually making a profit on their PS3s since May 2008 be it a small one. They'll make back all their lost money and more from here on out.

Sony Loses 3.32 billion On PS3 In 2 YearsXanderZane

AND out of all that money, 3.0 billion was spent on paying reviewers for MGS4's score.

Sorry i had to say it...

[QUOTE="XanderZane"][QUOTE="thrones"][QUOTE="XanderZane"][QUOTE="thrones"]

But unlike the original Xbox, the Playstation 3 is set to earn profits this year instead of you know... never. And the sales from the PS2 and PSP is still helping shrink the revenue gap.

Also, the MGS still hasn't recouped all the losses from the 6th Generation, so while they're making profit their overall foray into the thunderous gaming market has been a non-profitable venture... so far.

thrones

Sony isn't going to make any profits off the PS3 this year. They are still lossing money on every PS3 sold. Maybe in 2009 they'll start making some money back, but not this year.

We'll see. I'm not sure how unless it from the software and accessories they've sold on the PS3. Sony as a company will make a profit, but their PS3 division won't. We'll know next year.

You mean Sony as a company or Sony's gaming division?

Microsoft as a company has never been in the red either. It's just their gaming division that was in the RED, which is typical for any new company trying to break into a new market. Sony's gaming division started in the RED too when they first launched their PS1. It took them a few years to get out of it as well.

*************************************************************************

Everyone but you knows that Sony has stated that they're now turning a profit since May 2008. Playstation is a proven brand unlike Xbox that was unproven.

http://www.digitalspy.co.uk/gaming/a85296/sony-nearly-making-a-profit-with-ps3.html?rss

patriots7672

The XBox is a proven brand now obviously. The original XBox was still a success in terms of making a niche in the market. Sure they losted money on it, but they established the brand to be positive. Why do you think the XBox 360 is doing so well? Even with RROD, the console is still selling very well in Europe and America. So it's proving itself to be a worthy system.

Sony may be making a little money on their PS3 now, but they lossed 1.16 billion to start the year and that's a lot to make up if 7 months. That's why I said, let's see what happens at the end of the year. Right now, they are still way in the RED with the PS3 so far. Their PSP and PS2 is keeping their gaming division as a whole out of the RED.

There is one difference between PS3 and Xbox though...

Xbox did nothing for MS..

PS3 won the Format war for Sony..

[QUOTE="XanderZane"] Sony Loses 3.32 billion On PS3 In 2 Yearsnintendog66

AND out of all that money, 3.0 billion was spent on paying reviewers for MGS4's score.

Sorry i had to say it...

If a PS3 game gets ported to 360, it's pwnage.

If a 360 game gets ported to PS3 , it's sloppy seconds.

If a 360 exclusive gets a 9 or higher, the review was fair and unbiased.

If a PS3 exclusive gets a 9 or higher, it's because Sony bribed reviewers.

Your fanboyish double standards are really beginning to piss me off.:evil:

I never actually realised it but MS is doing pretty well with the 360...

They were making $75 with every 360 sold, and that was in 06, now it will be even cheaper to make.

I never actually realised it but MS is doing pretty well with the 360...

They were making $75 with every 360 sold, and that was in 06, now it will be even cheaper to make.

angelkimne

[QUOTE="angelkimne"]

I never actually realised it but MS is doing pretty well with the 360...

They were making $75 with every 360 sold, and that was in 06, now it will be even cheaper to make.

Brainkiller05

There is one difference between PS3 and Xbox though...

Xbox did nothing for MS..

PS3 won the Format war for Sony..

omgimba

If your talking about Xbox 1 : No, it gave them a foothold in the gaming market and a stronger place to start next gen..

[QUOTE="nintendog66"]

[QUOTE="XanderZane"] Sony Loses 3.32 billion On PS3 In 2 Yearsnervmeister

AND out of all that money, 3.0 billion was spent on paying reviewers for MGS4's score.

Sorry i had to say it...

If a PS3 game gets ported to 360, it's pwnage.

If a 360 game gets ported to PS3 , it's sloppy seconds.

If a 360 exclusive gets a 9 or higher, the review was fair and unbiased.

If a PS3 exclusive gets a 9 or higher, it's because Sony bribed reviewers.

Your fanboyish double standards are really beginning to piss me off.:evil:

Hey hey! Hold on a sec, I do NOT own a 360 and never intend to do so. I own a Wii, Ps3 and PC, I love all my 3 systems to death(there's a small fanboy inside of me that leans toward Nintendo) and even as a PS3 owner i still think MGs4 didn't deserve a 10, neither did GTA4 because they aren't perfect, they still have flaws and their score should be lower to reflect on the game's overall design. Also there's something called sarcasm, I don't actually think Sony spend much money to get Mgs4's score, publishers DO pay to get their games reviewed but paying MORE than it is would be bribe.

[QUOTE="Brainkiller05"][QUOTE="angelkimne"]

I never actually realised it but MS is doing pretty well with the 360...

They were making $75 with every 360 sold, and that was in 06, now it will be even cheaper to make.

thrones

R & D costs would probably have gone up since MS saved a lot of money designing the chipset themselves (hence the RROD) at first, but, for the new Jasper chipset, they ponyed up the cash to ATI to design it.

[QUOTE="nervmeister"][QUOTE="nintendog66"]

[QUOTE="XanderZane"] Sony Loses 3.32 billion On PS3 In 2 Yearsnintendog66

AND out of all that money, 3.0 billion was spent on paying reviewers for MGS4's score.

Sorry i had to say it...

If a PS3 game gets ported to 360, it's pwnage.

If a 360 game gets ported to PS3 , it's sloppy seconds.

If a 360 exclusive gets a 9 or higher, the review was fair and unbiased.

If a PS3 exclusive gets a 9 or higher, it's because Sony bribed reviewers.

Your fanboyish double standards are really beginning to piss me off.:evil:

Hey hey! Hold on a sec, I do NOT own a 360 and never intend to do so. I own a Wii, Ps3 and PC, I love all my 3 systems to death(there's a small fanboy inside of me that leans toward Nintendo) and even as a PS3 owner i still think MGs4 didn't deserve a 10, neither did GTA4 because they aren't perfect, they still have flaws and their score should be lower to reflect on the game's overall design. Also there's something called sarcasm, I don't actually think Sony spend much money to get Mgs4's score, publishers DO pay to get their games reviewed but paying MORE than it is would be bribe.

Hey hey! Hold on a sec, I do NOT own a 360 and never intend to do so. I own a Wii, Ps3 and PC, I love all my 3 systems to death(there's a small fanboy inside of me that leans toward Nintendo) and even as a PS3 owner i still think MGs4 didn't deserve a 10, neither did GTA4 because they aren't perfect, they still have flaws and their score should be lower to reflect on the game's overall design. Also there's something called sarcasm, I don't actually think Sony spend much money to get Mgs4's score, publishers DO pay to get their games reviewed but paying MORE than it is would be bribe.
nintendog66

Sony is not making a profit off the PS3.

How can a system that sells for remarkably less than it's production cost, that has a pathetic attach rate and heavy upkeep costs on Sony's behalf be in the black when it's next closest competitor is operating at 160% of the PS3's capacity except in attach rate, where it's like 190%.

Does this make sense? No it doesn't. The PS brand is in the black. The PS3 is in deep deep red.

Sony is not making a profit off the PS3.

How can a system that sells for remarkably less than it's production cost, that has a pathetic attach rate and heavy upkeep costs on Sony's behalf be in the black when it's next closest competitor is operating at 160% of the PS3's capacity except in attach rate, where it's like 190%.

Does this make sense? No it doesn't. The PS brand is in the black. The PS3 is in deep deep red.

usmcjdk6

MS would be miles ahead in profits, but RROD hit them hard. Not to mention, whilst Sony and Nintendo are cutting down on operating costs, MS have been continually reinvesting in newer hardware to try and curb the RROD issue in consoles and have just splashed out to get ATI to redesign their chipset (the Jasper model).

[QUOTE="nintendog66"][QUOTE="nervmeister"][QUOTE="nintendog66"]

[QUOTE="XanderZane"] Sony Loses 3.32 billion On PS3 In 2 Yearsangelkimne

AND out of all that money, 3.0 billion was spent on paying reviewers for MGS4's score.

Sorry i had to say it...

If a PS3 game gets ported to 360, it's pwnage.

If a 360 game gets ported to PS3 , it's sloppy seconds.

If a 360 exclusive gets a 9 or higher, the review was fair and unbiased.

If a PS3 exclusive gets a 9 or higher, it's because Sony bribed reviewers.

Your fanboyish double standards are really beginning to piss me off.:evil:

Hey hey! Hold on a sec, I do NOT own a 360 and never intend to do so. I own a Wii, Ps3 and PC, I love all my 3 systems to death(there's a small fanboy inside of me that leans toward Nintendo) and even as a PS3 owner i still think MGs4 didn't deserve a 10, neither did GTA4 because they aren't perfect, they still have flaws and their score should be lower to reflect on the game's overall design. Also there's something called sarcasm, I don't actually think Sony spend much money to get Mgs4's score, publishers DO pay to get their games reviewed but paying MORE than it is would be bribe.

Difference? What if an even BETTER game came out? What would they score it? 10.5 or 11 out of 10?

There is one difference between PS3 and Xbox though...

Xbox did nothing for MS..

PS3 won the Format war for Sony..

omgimba

I wouldn't say that. The XBox allowed Microsoft to break into the gaming market and has taken a significany amount of shares from Sony. The XBox 360 has helped M$ get out of the debt that the original XBox put them in. It also helped them establish a quality brand in the gaming market. True the 360 hardware isn't perfect, but the software M$ was able to get for the system has reap huge rewards for M$. They have over 40 titles that have sold more then 1 million copies on their 360. Developers like to see those type of numbers. Why do you think Capcom is so giddy now to make XBox 360 games? Even Namco, who didn't do much on the original XBox, see the 360 as a viable profit machine for their software. So to say that XBox did nothing for M$ would be wrong.

Even though the PS3 won the format wars for Sony, Blu-Ray still isn't a dominate factor in current media yet. DVD is still killing it in sales every month and Blu-Ray isn't really making any huge strides to replace DVD. A lot of people just do see it as a huge difference over DVD, except is storage. There are also other media formats in the wing and with Digial Download becoming more popular, many don't believe Blu-Ray will ever succeed DVD's.

Read this article. http://crave.cnet.com/8301-1_105-9876100-1.html

would[QUOTE="omgimba"]

There is one difference between PS3 and Xbox though...

Xbox did nothing for MS..

PS3 won the Format war for Sony..

XanderZane

I wouldn't say that. The XBox allowed Microsoft to break into the gaming market and has taken a significany amount of shares from Sony. The XBox 360 has helped M$ get out of the debt that the original XBox put them in. It also helped them establish a quality brand in the gaming market. True the 360 hardware isn't perfect, but the software M$ was able to get for the system has reap huge rewards for M$. They have over 40 titles that have sold more then 1 million copies on their 360. Developers like to see those type of numbers. Why do you think Capcom is so giddy now to make XBox 360 games? Even Namco, who didn't do much on the original XBox, see the 360 as a viable profit machine for their software. So to say that XBox did nothing for M$ would be wrong.

Even though the PS3 won the format wars for Sony, Blu-Ray still isn't a dominate factor in current media yet. DVD is still killing it in sales every month and Blu-Ray isn't really making any huge strides to replace DVD. A lot of people just do see it as a huge difference over DVD, except is storage. There are also other media formats in the wing and with Digial Download becoming more popular, many don't believe Blu-Ray will ever succeed DVD's.

Read this article. http://crave.cnet.com/8301-1_105-9876100-1.html

Of course DVD is outselling Blu-ray it should since Blu-ray is new,but what you also forget to bring up is that Blu-ray is gaining shares faster then DVD did in the amount of time on the market.

[QUOTE="angelkimne"][QUOTE="nintendog66"][QUOTE="nervmeister"][QUOTE="nintendog66"]

[QUOTE="XanderZane"] Sony Loses 3.32 billion On PS3 In 2 Yearsnintendog66

AND out of all that money, 3.0 billion was spent on paying reviewers for MGS4's score.

Sorry i had to say it...

If a PS3 game gets ported to 360, it's pwnage.

If a 360 game gets ported to PS3 , it's sloppy seconds.

If a 360 exclusive gets a 9 or higher, the review was fair and unbiased.

If a PS3 exclusive gets a 9 or higher, it's because Sony bribed reviewers.

Your fanboyish double standards are really beginning to piss me off.:evil:

Hey hey! Hold on a sec, I do NOT own a 360 and never intend to do so. I own a Wii, Ps3 and PC, I love all my 3 systems to death(there's a small fanboy inside of me that leans toward Nintendo) and even as a PS3 owner i still think MGs4 didn't deserve a 10, neither did GTA4 because they aren't perfect, they still have flaws and their score should be lower to reflect on the game's overall design. Also there's something called sarcasm, I don't actually think Sony spend much money to get Mgs4's score, publishers DO pay to get their games reviewed but paying MORE than it is would be bribe.

Difference? What if an even BETTER game came out? What would they score it? 10.5 or 11 out of 10?