I hate to have told everybody, but it appears the victors are Mr. Softy & Ninty. NOT Sorny!

http://videogames.yahoo.com/feature/sony-has-lost-over-3-billion-on-the-ps3/1223467

Sony has lost over $3 billion on the PS3

By Ben Silverman

Think you paid too much for your Playstation 3? Don't expect any sympathy from Sony.

In the company's fiscal 2008 annual report, Sony revealed that they've now lost roughly $3.3 billion (that's billion with a B) on the Playstation 3 since its launch. That breaks down to $2.16 billion in 2007, followed by a notably smaller but equally daunting $1.16 billion loss in 2008.

The reason? Pricing the console below its production cost. That's right - that hefty $599 you paid for the PS3 back when it first launched was significantly cheaper than the cost of producing it in the first place, and while the retail price has come down some, the losses keep piling up.

Investors have reason to sweat. In a statement, Sony claimed "the large-scale investment required during the development and introductory period of a new gaming platform may not be fully recovered." They went on to note that they've invested a great deal of money into R&D for the console, a sum they might not be able to recoup if the PS3 "fails to achieve such favorable market penetration."

Sony fanboys should take heart, however. Losing money on hardware is relatively common in the video game biz, as companies routinely lower prices to sell more units and thus stimulate software sales. Sony's game division saw a 26% sales spike last quarter, a trend they expect will continue on the strength of strong exclusives like the recently released Metal Gear Solid 4 and the upcoming sequel Resistance 2.

But will it be enough?

---------------------------------------

My answer to that question: It'll never be enough! :P Mr. Softy & Ninty are moving in for the kill while the PC is there for complimentary face squat.

Your link didn't work for me.

The PS3 is a great VALUE, that's for sure.

Did you get your SORNY from the Simpons?

Panafonic, Magnetbox, Sorny.

The PS3 is a great VALUE, that's for sure.

Did you get your SORNY from the Simpons?

Panafonic, Magnetbox, Sorny.

SolidTy

HAHA. Maybe. It's a meme that stuck with me from somewheres. I've also seen Fony on the 2000AD Sinister & Dexter comic (on Dexter's forehead).

Anyone know how much M$ lost on the first Xbox? Or how they killed all support for it?

Anyone?

It's all part of the gaming industry that's why we pay $60 for a game on a DVD format or pay $40 for a wireless controller and then have to buy the play and charge kit. Buy a dualshock controller because now it rumbles or buy a headset because it's not provided. Almost everyone takes a hit from hardware and we get nickel'd & dimed on everything else. What happen to the days of two controllers, a game and a system? That's right Sega Genesis and Super Nintendo killed it.

The PS3 is a great VALUE, that's for sure.

Did you get your SORNY from the Simpons?

Panafonic, Magnetbox, Sorny.

SolidTy

what about the carnivale? GOTTA HAVE THE CARNAVALIE

[QUOTE="SolidTy"]

The PS3 is a great VALUE, that's for sure.

Did you get your SORNY from the Simpons?

Panafonic, Magnetbox, Sorny.

Animal-Mother

what about the carnivale? GOTTA HAVE THE CARNAVALIE

That's what Homer ended up with, good one. THE CARNAVALIE!

LOL.

Anyone know how much M$ lost on the first Xbox? Or how they killed all support for it?

Anyone?

It's all part of the gaming industry that's why we pay $60 for a game on a DVD format or buy $40 for a wireless controller and then have to buy the play and charge kit. Almost everyone takes a hit from hardware and we get nickel'd & dimed on everything else. What happen to the days of two controllers, a game and a system? That's right Sega Genesis and Super Nintendo killed it.

lvgaming

[QUOTE="Animal-Mother"][QUOTE="SolidTy"]

The PS3 is a great VALUE, that's for sure.

Did you get your SORNY from the Simpons?

Panafonic, Magnetbox, Sorny.

SolidTy

what about the carnivale? GOTTA HAVE THE CARNAVALIE

That's what Homer ended up with, good one. THE CARNAVALIE!

LOL.

that show is my all time favorite despite the fact im 20 i still need to watch it to goto bed every night

MS losses are around 5 Billion so whats your point and they lost another billion for the RROD problem that still isn't sovled rocoswav

Anyone know how much M$ lost on the first Xbox? Or how they killed all support for it?

Anyone?

It's all part of the gaming industry that's why we pay $60 for a game on a DVD format or pay $40 for a wireless controller and then have to buy the play and charge kit. Buy a dualshock controller because now it rumbles or buy a headset because it's not provided. Almost everyone takes a hit from hardware and we get nickel'd & dimed on everything else. What happen to the days of two controllers, a game and a system? That's right Sega Genesis and Super Nintendo killed it.

lvgaming

What? Seriously: Mr. Softy is already pulling profit, buster. They're not in the red ink.

It just sounds to me that the people who designed the Sorny PS3 Carnivale didn't put their hearts & minds into it like they did witht he PS2. It seems to be an internal battle occurred at Sorny & they rammed the blu-ray player down the Playstation designer team's throats & didn't give them an option to lower cost. And now here we are, looking at shameful embarrassment that Sorny has caused for itself.

I wonder if Sorny just got "SEGA'ed" :D

MS losses are around 5 Billion so whats your point and they lost another billion for the RROD problem that still isn't sovled rocoswav

I am pretty sure they are currently in the black. MS may have taken a blow, but Sony seems to be struggling much more. Hopefully, Blu-Ray production will become less costly, but it doesn't seem likely due to abysmal software sales.

And yet Sonys game division is still profiting ;)EVOLV3

Oh they completely left that detail out. What the hell lol.

[QUOTE="rocoswav"]MS losses are around 5 Billion so whats your point and they lost another billion for the RROD problem that still isn't sovled Makari

Oh yeah. Mr. Softy didn't try to drive new high-end technology down people's throats either. They stuck with effective off-the-shelf parts. When they were designing the Xbox 360 & Wii, those developers must've been snickering at Sorny's ambitious plan. You know you would think that Sorny would've learned their lesson with Betamax. Didn't they build the betamax & have the same issue? Americans aren't all that plussed about paying high dollar for the latest & greatest technology. I believe that's a Japanese cultural thing. We just don't care enough about it.

[QUOTE="lvgaming"]

Anyone know how much M$ lost on the first Xbox? Or how they killed all support for it?

Anyone?

It's all part of the gaming industry that's why we pay $60 for a game on a DVD format or buy $40 for a wireless controller and then have to buy the play and charge kit. Almost everyone takes a hit from hardware and we get nickel'd & dimed on everything else. What happen to the days of two controllers, a game and a system? That's right Sega Genesis and Super Nintendo killed it.

thriteenthmonke

Get some evidence to prove that. Otherwise, I don't believe that at all.

[QUOTE="Animal-Mother"][QUOTE="SolidTy"]

The PS3 is a great VALUE, that's for sure.

Did you get your SORNY from the Simpons?

Panafonic, Magnetbox, Sorny.

SolidTy

what about the carnivale? GOTTA HAVE THE CARNAVALIE

That's what Homer ended up with, good one. THE CARNAVALIE!

LOL.

You can't pass up that pre-molded hand grip well.

Sorny? I didn't know there was another fan of the Simpsons here!Video_Game_King

LOL! I've been saying that for weeks & now people are finally catching on to it..

[QUOTE="rocoswav"]MS losses are around 5 Billion so whats your point and they lost another billion for the RROD problem that still isn't sovled farrell2k

Fanboy tactic #22: Try to cover up your company's embarassing mistake by pointing out that of another...

HILARIOUS! LOL! An unproven fact at that.

[QUOTE="lvgaming"]

Anyone know how much M$ lost on the first Xbox? Or how they killed all support for it?

Anyone?

It's all part of the gaming industry that's why we pay $60 for a game on a DVD format or pay $40 for a wireless controller and then have to buy the play and charge kit. Buy a dualshock controller because now it rumbles or buy a headset because it's not provided. Almost everyone takes a hit from hardware and we get nickel'd & dimed on everything else. What happen to the days of two controllers, a game and a system? That's right Sega Genesis and Super Nintendo killed it.

jknight5422

What? Seriously: Mr. Softy is already pulling profit, buster. They're not in the red ink.

It just sounds to me that the people who designed the Sorny PS3 Carnivale didn't put their hearts & minds into it like they did witht he PS2. It seems to be an internal battle occurred at Sorny & they rammed the blu-ray player down the Playstation designer team's throats & didn't give them an option to lower cost. And now here we are, looking at shameful embarrassment that Sorny has caused for itself.

I wonder if Sorny just got "SEGA'ed" :D

Dude, the 360 did not begin making a profit until the Fall of 07, after the release of Halo 3. That was nearly two whole years. In fact, by this point in the 360's life cycle, it had lost MORE money... even though it cost considerably less to make. It had lost $1.9BN by July instead of $1.2BN http://news.cnet.co.uk/gamesgear/0,39029682,49291771,00.htm.

[QUOTE="rocoswav"]MS losses are around 5 Billion so whats your point and they lost another billion for the RROD problem that still isn't sovled Makari

you do relize that sony was also cutting into a new market area, because of blue ray they were fighting on 2 fronts, and ofcourse it pushing a new format and a new console at the same time was gonna cost them. and now that toshiba has been defeated they can concentrate on winning the console war. and by the way MS could go around and buy up all the exclusives it wants there still dead in japan despite all the RPGs that they have now and there still being outsold WW so as the old saying goes, money can't buy you love

[QUOTE="farrell2k"]

[QUOTE="rocoswav"]MS losses are around 5 Billion so whats your point and they lost another billion for the RROD problem that still isn't sovled jknight5422

Fanboy tactic #22: Try to cover up your company's embarassing mistake by pointing out that of another...

HILARIOUS! LOL! An unproven fact at that.

Only problem is that rocoswav doesn't own Sony :P

[QUOTE="Makari"][QUOTE="rocoswav"]MS losses are around 5 Billion so whats your point and they lost another billion for the RROD problem that still isn't sovled rocoswav

you do relize that sony was also cutting into a new market area, because of blue ray they were fighting on 2 fronts, and ofcourse it pushing a new format and a new console at the same time was gonna cost them. and now that toshiba has been defeated they can concentrate on winning the console war. and by the way MS could go around and buy up all the exclusives it wants there still dead in japan despite all the RPGs that they have now and there still being outsold WW so as the old saying goes, money can't buy you love

I LOL'd. Like Sony is doing so well in Japan, right? :roll:

And what will they do when M$ launches another console in 2010?stiltzsy

RIP Sorny. Helloo Xbox Carnivale!

[QUOTE="stiltzsy"]And what will they do when M$ launches another console in 2010?jknight5422

RIP Sorny. Helloo Xbox Carnivale!

:lol: this thread is full of lulz!

difference being, MS was cutting in on a new market and had to / expected to spend giant amounts of money.Makari

iirc now their gaming division is actually making money and they're not doing too badly against sony, which is pretty amazing.Makari

Microsoft is making money as is Sony. However, both companies are still in the red when it comes to their gaming division (overall).

and ms has an utterly gigantic os/software cushion to sit on. sony has.. i think their movie studios are profitable? i don't think the computer/television/music groups were doing all that greatMakari

Some links to show you my actual facts (and not random views I pulled out of nowhere):

http://www.engadget.com/2008/01/31/sonys-game-division-turns-a-profit/

http://www.rte.ie/business/2008/0514/sony.html

[QUOTE="thriteenthmonke"][QUOTE="lvgaming"]

Anyone know how much M$ lost on the first Xbox? Or how they killed all support for it?

Anyone?

It's all part of the gaming industry that's why we pay $60 for a game on a DVD format or buy $40 for a wireless controller and then have to buy the play and charge kit. Almost everyone takes a hit from hardware and we get nickel'd & dimed on everything else. What happen to the days of two controllers, a game and a system? That's right Sega Genesis and Super Nintendo killed it.

jknight5422

Get some evidence to prove that. Otherwise, I don't believe that at all.

You must be new to gaming news huh? Xbox losses have been a well known fact for years. Here ya go:

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

The purpose was to show that Sony stayed with the PS 1 and PS 2 to make it work. M$ made the Xbox and lost billions then just dumped it to make the X360. So my question is if the PS3 is picking up on sales and X360 dropping its price to counter it, how mad are people going to be if M$ dumps the X360 to make another system? And on top of that with a Blu-Ray Drive?

I was one of those the suckers that bought the Xbox to turn around and get ripped off while the PS2 is still around. Now I just say scew it and buy them all lol..

[QUOTE="Makari"]difference being, MS was cutting in on a new market and had to / expected to spend giant amounts of money.CStheGreat

iirc now their gaming division is actually making money and they're not doing too badly against sony, which is pretty amazing.Makari

Microsoft is making money as is Sony. However, both companies are still in the red when it comes to their gaming division (overall).

and ms has an utterly gigantic os/software cushion to sit on. sony has.. i think their movie studios are profitable? i don't think the computer/television/music groups were doing all that greatMakari

Some links to show you my actual facts (and not random views I pulled out of nowhere):

http://www.engadget.com/2008/01/31/sonys-game-division-turns-a-profit/

http://www.rte.ie/business/2008/0514/sony.html

The purpose was to show that Sony stayed with the PS 1 and PS 2 to make it work. M$ made the Xbox and lost billions then just dumped it to make the X360. So my question is if the PS3 is picking up on sales and X360 dropping its price to counter it, how mad are people going to be if M$ dumps the X360 to make another system? And on top of that with a Blu-Ray Drive?

I was one of those the suckers that bought the Xbox to turn around and get ripped off while the PS2 is still around. Now I just say scew it and buy them all lol..

lvgaming

Microsoft will be dumb if they just drop support for the 360 again. Especially if they launch their new console in another 2-3 years. At the very least, they will need to make sure they actually support b/c properly this time for the early adopters.

They did better with games this gen then they did last gen... but they will really need to pump out some more innovation in these last two years if they plan on ending the gen early. They started with a bang but their game library is starting to be overshadowed by the competition.

Is this big news? The first xbox lost billions for the entire generation and NEVER generated a profit for Microsoft. The PS2 also generated a loss for Sony in its first few years. Sony's new console will become profitable in it's second year (same amount of time it took for the 360 to become profitable actually). That's not bad, but they do still have a lot of ground to make up.Sgt_Hale

Of course, it's big news. Mr. Sofyt started from scratch taking losses & then fixes the problem.

Sorny, on the other hand, starts at the top, all the problems worked out & then shames itself with one bad decison after another. It's like the Edsel of consoles.

So uh, does this mean that the big N is the only company to come out with a profit this generation? x_x I know Microsoft said they predicted they would start making a profit around 2009 (or was it 2010?) and now with Sony in the dumps... yeah.Aquat1cF1sh

Mr. Softy, Ninty, & PC are all making the samolians. My theory is that Sorny killed itself by forcing the blu-ray onto everyone. They ate the cost to give you a "cheap" console...probably they were taking off $200-$300 off the price just to make it affordable!

And here is ze CHECK MATE: Mr. Softy is lowering their price. It's like the head shot from some incredible sniperery from the Master Chief.

With Mr. Softy lowering the cost, Sorny will have to lower its cost & lose even MORE money. Sorny will lose more money & will barely be able to break even with profit from the gaming dept. Lastly, even if Phatal Phartasy is a big hit when it's released, it's not going to be like Spore. It would have to be like Spore for Sorny to see it recoup its losses from the hardware.

I wonder if Sorny will go bankrupt? Ninty can buy it out.

Dude, the 360 did not begin making a profit until the Fall of 07, after the release of Halo 3. That was nearly two whole years. In fact, by this point in the 360's life cycle, it had lost MORE money... even though it cost considerably less to make. It had lost $1.9BN by July instead of $1.2BN http://news.cnet.co.uk/gamesgear/0,39029682,49291771,00.htm.

Sgt_Hale

Sgt Hale, they already got all their money back. Saying who lost what is not relavent if they are now making profit. Saying who has lost money and is STILL losing money is what this thread is all about. How many more years of losses does it need? With the 360 already price cutting in advance, Sorny will have to take more loss. It's a viscious cycle for Sornery.

You must be new to gaming news huh? Xbox losses have been a well known fact for years. Here ya go:

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

Sgt_Hale

Nah nah. I just didn't feel like looking it up. But if you state a fact, better back it up with a link. Anyhoo, the point is that Mr. Softy has reversed its fortunes...whereas the leader of the pack has fallen like a crumbled empire. I keep wondering if we'll see Sorny bow out of the console business. Is it normal for a company like Sornage to set itself up for failure? It's like betamax all over again. It's like the Grand Poobah of Sornery said, "Ok. I'm out of ideas. Let's repeat the same mistake we made 30 years ago."

[QUOTE="Aquat1cF1sh"]So uh, does this mean that the big N is the only company to come out with a profit this generation? x_x I know Microsoft said they predicted they would start making a profit around 2009 (or was it 2010?) and now with Sony in the dumps... yeah.jknight5422

Mr. Softy, Ninty, & PC are all making the samolians. My theory is that Sorny killed itself by forcing the blu-ray onto everyone. They ate the cost to give you a "cheap" console...probably they were taking off $200-$300 off the price just to make it affordable!

And here is ze CHECK MATE: Mr. Softy is lowering their price. It's like the head shot from some incredible sniperery from the Master Chief.

With Mr. Softy lowering the cost, Sorny will have to lower its cost & lose even MORE money. Sorny will lose more money & will barely be able to break even with profit from the gaming dept. Lastly, even if Phatal Phartasy is a big hit when it's released, it's not going to be like Spore. It would have to be like Spore for Sorny to see it recoup its losses from the hardware.

I wonder if Sorny will go bankrupt? Ninty can buy it out.

And this is where you lost me.

[QUOTE="Aquat1cF1sh"]So uh, does this mean that the big N is the only company to come out with a profit this generation? x_x I know Microsoft said they predicted they would start making a profit around 2009 (or was it 2010?) and now with Sony in the dumps... yeah.jknight5422

Mr. Softy, Ninty, & PC are all making the samolians. My theory is that Sorny killed itself by forcing the blu-ray onto everyone. They ate the cost to give you a "cheap" console...probably they were taking off $200-$300 off the price just to make it affordable!

And here is ze CHECK MATE: Mr. Softy is lowering their price. It's like the head shot from some incredible sniperery from the Master Chief.

With Mr. Softy lowering the cost, Sorny will have to lower its cost & lose even MORE money. Sorny will lose more money & will barely be able to break even with profit from the gaming dept. Lastly, even if Phatal Phartasy is a big hit when it's released, it's not going to be like Spore. It would have to be like Spore for Sorny to see it recoup its losses from the hardware.

I wonder if Sorny will go bankrupt? Ninty can buy it out.

Thats Nice, Check the link and there are many more, here at gs also, to prove that sony's gaming division is back on black ink.

http://www.engadget.com/2008/01/31/sonys-game-division-turns-a-profit/

The Ps3 was the most expensive system last year, and still it outsold the 360 by over 2 millions, It was a huge ownage here on System wars. The 360 needs more than just a few price cuts to beat the Ps3 in worldwide sales :lol:. If Forza, Halo3, Gears of war, Mass Effect etc etc didn't help the 360 to beat the Ps3 in worldwide sales what will? The 360 has been last in monthly sales for quite a while, look forward to June NPD figures and delightfully witness where the xbox360 is standing at.

The purpose was to show that Sony stayed with the PS 1 and PS 2 to make it work. M$ made the Xbox and lost billions then just dumped it to make the X360. So my question is if the PS3 is picking up on sales and X360 dropping its price to counter it, how mad are people going to be if M$ dumps the X360 to make another system? And on top of that with a Blu-Ray Drive?

I was one of those the suckers that bought the Xbox to turn around and get ripped off while the PS2 is still around. Now I just say scew it and buy them all lol..

lvgaming

Part of the PS2's success is what is KILLING Sorny! People are still playing the PS2 & games still come out for it, so most PS2 console owners are thinking, "I'll wait til the PS3 console is only $130 & THEN I'll upgrade." None of them are upgrading to the PS3 as they either can't afford it, don't have HDTV, or just don't care. Basically Sorny is competing with itself PLUS the Wii PLUS the Xbox 360.

The 360 did offer backwards compatibility to 75% of its games. It only quit when Sorny abandoned backwards compatibility for its games in the cheaper model. Plus, the Xbox itself was no great loss. I used it for 2 years & only paid $100 for it.

Lastly, people that still own an Xbox can still get on XBL & play against other people. There are still tons of people playing Halo 2 & using the Xbox.