107

Analyst: PlayStation 3 To Be profitable by August

tidus04 | April 22, 2008 | News | Playstation 3 
Nikko Citigroup's analysts believe that the Playstation 3 will become a profitable machine for Sony from the beginning of August (this is also the same time they said the Slim PS3 will come out) which is actually 3 months early from Sony have said for themselves to be the break even point for the machine.

Sony also believe that the only way for them to make a profit out of the Playstation 3 is when the cell processor and the 90nm are shrunk to a smaller size, so if that is the case you may see Sony introduce this into the console sometime soon.
Nikko Citigroup analysts have upgraded their rating for Sony Corporation citing their anticipation that the company will break even or even turn a profit on the PlayStation 3 beginning in August.

If their prediction is accurate, then Sony will break even at least three months earlier than analysts had previously speculated. Sony itself was not sure when it would hit profitability on the console and Sony's Kaz Hirai said that the company would was shooting for the fiscal year beginning April 2008.

Sony has always said that PS3 production costs will only ever hit break even point when the "65nm Cell processor and the 90nm are shrunk to smaller, cheaper-to-manufacture sizes, and that comes with the side effect of drawing less power and creating less heat."

It should be interesting to see when profitability occurs because may lead to more price cuts for the consumer.

News Story attached to:
18 comments | go to source (www.gamesindustry.biz) | send to friend
Register as a member to subscribe comments.

Comments with -5 or lower "thumbs" are removed from display.

  • 0 thumbs!
    chautemoc | April 22, 2008
    Hehe, about the same time Home has been delayed for..coincidence? Im guessing not.
  • -2 thumbs!
    theundertakergonzo | April 23, 2008
    Good to hear that the PS3 is becoming profitable. It's an awesome console i must say. Free online FTW. But anyone i hope it's true. Good on them.
  • 0 thumbs!
    Chris7689 | April 23, 2008
    i want them to make a ps3 "elite" so to speak cause i want the most i can get out of it. besides ive always hated their slimmer looks.

    lately sonys seems to be making really dumb decisions.
    • 0 thumbs!
      iLLmatic | April 23, 2008
      What? What more do you want? The 360 was upgraded to the Elite to match the "regular" PS3.
    • -1 thumbs!
      jmac353 | April 23, 2008
      They did. It's called the 60gig, and everyone that bought one got a badass deal before all the whiny bitches started to crop up and Sony started to cut features and prices.
      • 0 thumbs!
        Seeker X | April 23, 2008
        Can't really agree more.

        "Take the 60, it's a damn good deal..."

        "No, I want a price cut"

        "Well now there's a price cut, but there's a smaller HDD and no Backwards compatibility whatsoever; congratulations, moron, you had your chance."

        ""
        • 1 thumbs!
          jmac353 | April 23, 2008
          Seriously, none of you whiny bitches can complain about backwards compatibility and stuff because it's you mother *bleep*ers that wanted a cheaper PS3! So when Sony went and took out the hardware to make the PS3 cheaper but also damage the backwards compatibility you people still complained.

          What on earth did you expect, them to just lower the price? They were already selling at a huge loss and they weren't about to cut the prices and sell at an even greater loss. Things have to be done to cut prices.
        • 0 thumbs!
          Chris7689 | April 24, 2008
          thats exactly it i want backwards compadability. where can i get a 60 gig one??
  • 0 thumbs!
    Final Blade | April 23, 2008
    Jesus, the PS3 is already making profit. Right now they are doing great, i don't see that stopping.

    Its just a rumor, there won't be a slim PS3, its just too early. Late 2003 early 2004 The slim PS2 made its way into the market. I can't see ever the PS3 getting one this early.
    • 0 thumbs!
      jmac353 | April 23, 2008
      The PS3 is not making profit. It's selling consoles but it's not making profit. All game consoles sell at a great loss at the beginning but they know that along the lifespan of the console it will become cheaper to manufacture and ultimately will eventually break even and start making them money.
      • 0 thumbs!
        Final Blade | April 23, 2008
        I think it is this year. They have sold lots of games and consoles in 5 months. Sure it may not be the ideal profit but still selling and making profit, from lets say 8 months ago.

        The PS3 costed $800 to manufacture, Now it costs $400 to manufacture. Its now half from what it was used to be, and this was stated 5 months ago on a gamegrep article i either posted or someone else. So from then to now, it has been making profit.
        • 0 thumbs!
          jmac353 | April 23, 2008
          If it was making profit there wouldn't be an article submitted to gamegrep talking about the PS3 going profitable in August... need I say more?
        • 0 thumbs!
          slumpy monkey | April 23, 2008
          There's a difference between "How many consoles sold" and "How much profit earned on each".

          It badly need home to come out so they can earn shitloads of money off it.
        • 0 thumbs!
          Final Blade | April 23, 2008
          Thats cause people are idiots when they make articles about it, and then we find them and submit them cause it sounds interesting. Its not our faults, its where its posted.

          I know Slumpy, but the console sales and amount of games being sold for them have been great this year and for the last 5 months.
          They have sold some of their shares and re-couped some of the money they lost and the manufacturing has been slashed to half, and its going to be cut further in a month or two. People are living in the past.
        • -1 thumbs!
          jmac353 | April 23, 2008
          Final Blade. You're the idiot in this case.
        • 0 thumbs!
          Final Blade | April 24, 2008
          Guess you didn't read my post jmac. I wasn't calling the people here idiots. But whatever think what you like.
        • -1 thumbs!
          jmac353 | April 24, 2008
          You don't get it final blade. It doesn't matter who you were calling an idiot. The fact remains that you are the idiot in this case.
  • -1 thumbs!
    iLLmatic | April 24, 2008
    Final Blade, doesn't it ever get tired being wrong and just not admitting to it? Its really pathetic when a person frequently cannot admit a fault. Its a trait you HAVE to learn to get over before you get older.

    The PS3 is not turning a profit, its a fact. You can't argue a fact. The PS3 is cheaper to manufacture today than it was yesterday, this much is true. The PS3 has been selling greatly in recent times, this much is also true. However, and pay attention now, all of those sales have not been enough to offset the hole that they have been in from the start. R&D has not been recouped, nor has the money they have lost thus far for selling the console itself at a loss. Do you understand that? They are not making money off of it because they have yet to draw even. In other words, they are only selling the PS3 at less of a loss now, than they were previously. If you loan me $10,000 to start a business, and I am making $500 off every sale, it is not a profit until I have made back that $10,000 PLUS put money in my own pocket. That is, by definition, what the word profit means. Its not a profit until you are making money, and that money is not made until you're above zero.

    Now, I'm going to sit back and wait for you to argue your point.

This news story is archived and is closed to comments now.

Submit Newshelp

Top Contributors

This Month
Gothic Girl 743 pts
chautemoc 504 pts
Deathsythe 462 pts
Silver Mir.. 368 pts
Tyranitar24 216 pts
Akira_EX 202 pts
Daniel_Smith 130 pts
Marooned C.. 107 pts
Coltrain 104 pts
N.Shah 96 pts
All-Time
Gothic Girl 15002 pts
Krunal 11813 pts
Linkin Par.. 9921 pts
Final Blade 8673 pts
xsynergyx 8079 pts
mistermostyn 7868 pts
Silver Mir.. 7554 pts
chautemoc 6956 pts
ITANI 6350 pts
Storm 5663 pts

Stats

Today
Published News: 30
Comments: 203
Points Given: 470
Users Registered: 0
This Month
Published News: 201
Comments: 1518
Points Given: 3384
Users Registered: 12
All Time
Published News: 9880
Comments: 65892
Points Given: 158233
Users Registered: 487

Conventions / Trade Shows

(0.0682/d/aeon)