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According to DFC intelligence figures cited by Dave Perry, Sony has lost more money on the PlayStation 3 hardware than it made on the PlayStation 2 during its five most popular years. In pure numbers speak it's lost $3 billion on the PS3, which is about equivalent to everything it made selling PS2s during its peak years.
But Sony's PS2, the best selling videogame console of all time, was making a healthy profit on each unit sold as of a few years ago. Seemingly all of that went to fund the PS3 hardware that Sony has been selling -- and for the foreseeable future will continue to sell -- at a loss. (Some estimates at one point put it at $260 per console, though manufacturing costs have steadily come down in the past year).
Putting things in perspective, though, Sony did lose quite a bit on PS2 hardware in its first year or so -- likely not $3 billion, but still. If things continue to move in Sony's favor and the PS3 manages to have a healthy 10-year life cycle (it's possible...the 8-year old PS2 managed to outsell both the Xbox 360 and the PS3 last year), it's still possible, when all is said and done, that the company can break even on hardware costs this generation. Or maybe eventually even make a profit. At this rate it'd better; who knows what the PlayStation 4 could end up costing the company.
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Most recently commented on by on Aug 24, 2008
Most recently commented on by on Aug 24, 2008
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I love the final line in this article: "The PS4 could end up costing Sony the company."
Utter bullcrap. Just bullcrap.
I remember reading an analyst's take on the situation, and there was talk of Sony relying too much on its existing fan base when they made a console, thinking that everyone would jump at the chance to buy their platform, despite the price and early hardware issues (which still occur, but at least they're replacing them). It wasn't a smart move, and Sony is learning the hard way that you can't always rely on fan loyalty, just like fans can't rely on company loyalty.
The camera front is a bit different, they let their other acquired divisions retain their name and develop technology and now they're doing the badge game with minor tweaks to continue their DSLR line. It's not as bad as people make it out to be though the components are still high end, just dated a bit, their personal camera market is still going well.
They did push off their Cell contracts to Toshiba as well and they've made some other market related calls to shape up their situation.
Overall they've probably ditched some things they might not have if they didn't need to appease their investors so much though.
I wouldn't say they entirely half assed anything but they did slice up their SKU's to death trying to make them cost effective to produce ignoring pretty much the original pitch to the consumer before launch. I guess they could only eat themselves to death for so long before they snapped out of it though.
If it was a MGS avatar what would you be saying?
It looks like some of the rabid Sony fanboys forgot to take their meds today. So. Very. Sad.
@Livewire the thing is Games is just one part of Sony, they have MANY divisions keeping the company strong, in fact even if they can't make another game system, the company will still live strong. They aren't hurting them financially as you make it out to believe. Maybe for the game division but thats hardly there main thing.
And there's no fanboys here, just people trying to point out the FACT we knew this already and the system is making profits now. Sony never had real competition with the PS1 and PS2 before, now its a whole new ballgame and Sony has some tough competition this generation with Nintendo and MS. But stuff like this benefits the gamer more so then the companies, they'll keep pushing games and we'll end up buying them. I don't think we should worry much on Sony this point, they've been outselling the 360 per month since January this year.
Ps3 Is NOT making profit at all, its scheduled for profit in 09/late 08.
You also forgot that the 360 actually outsold the ps3 in march 08.
don't know how you think only are turning a profit.
And so 360 outsold for one month; that's hardly an argument.
I was just responding to him being arrogant towards me, and how he said the PS3 was outselling the 360 for 7 months.
I was just pointing out some of the flaws in his post.
That's how it works. They essentially give away the consoles and make money on games and accessories. It's like razors you give away the razors and make your money on blades. It's very much an established business strategy.
@Seproth: Microsoft turned a profit on the 360 ages ago. So no, they're not losing money on it.
Did I ever state that Ms was making a profit? NO
Were talking about the PS3 not the Xbox 360.
ORLY
And no there not making a profit at all yet.
ohwell. at least the ps3 is worth the losses. @__@
And my overall point in this article was that even though the PS3 is now turning a profit it is going to be hard for Sony to dig itself out of the financial hole that it made. Same goes for Microsoft.
Sony has MANY divisions in which they're making lots of money. And its going to be hard for Sony this generation with 360 and Wii yeah but not because of financial problems, but for install base issues. 360 has been out first and has the best library to date with better online features and now Sony is getting more top quality games now. Wii is still selling like hotcakes everywhere.
So its not going to be easy for Sony but this is better news for gamers then the company. We shouldn't worry about the company as of now. They're all fine. MS has loads of money, and Sony has alot of money themselves they're not broke you know.
You're making something into something thats no there. Both company's are just fine and the PS3 is outselling the 360 every month mostly, the PS3 is now very close to being even terms with 360 in sales.
I didn't mean for it to get blown into some argument ffs.
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