http://videogames.yahoo.com/feature/sony-has-lost-over-3-billion-on-the-ps3/1223467 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?
How much gravy are they still creaming with the PS2? The PS2 is like a massive subsidy for the PS3. You have to combine both numbers to get the real picture. Microsoft isn't selling any original Xboxes, neither are they making money from new games for that system. Same for Nintendo and the Gamecube. To understand Sony's true console profit/loss, the PS2/PS3 must be considered together.
Sony could just get a second job. Spoiler Yes, I stole that joke from NeoGAF. I think those might include PS2 (and PSP) profits, or it is pretty close. Been a while since I looked at the numbers, but I remember the gaming division losing $1B-$2B during the first year the PS3 was out.
Microsoft and Sony have lost billions of dollars already with their consoles. The only company actually MAKING money is Nintendo.
Is'nt that ironic that the system with PS2 graphics is making money. The Wii seems kind of noveltyish to me, and I own one.....
I've always thought that game consoles make their money towards the end. When people all have the systems and basically buy ridiculously expensive games(compared to how much the DVD/Blue-ray disk cost). So this doesn't seem to be a surprise.
IIRC, Sony has turned a profit as well. But the point is that overall, they've both lost billions. Pretty much, unless you're Nintendo.
Another thing on the current systems, I think you'll find they have a VERY long lifespan with this generation so the losses they have made now are just at the very beggining of both consoles. It wouldnt surprise me if this generation went close on 10 years. By that time MS and Sony will be making major money and Nintendo will have had to come up with something new.
They are idiots if they bring it out that quickly. Graphics are now great on the XBox and PS3 so no ones going to pay for a further upgrade there. And the Xbox is only just getting to a point where you could say its got a full list of games.....with the PS3 still behind in the department. By the way.....someone here might be able to tell me.....why does my 360 remote have a record button? What and how can I record? Also is there a way to get saved games from my old xbox to my 360?
And they still made $770MM dollars in 07. Sony's gaming is still only 12% of its total revenue. Don't worry about Sony.
That's based on Microsoft's jacked-up product lifespan timetable, just like Vista was...which obviously came out too soon.
I wouldn't worry about Sony, but I might worry about SCEI. Regarding the next Xbox, PS4, etc., it is probably too early to tell at this point. I think Microsoft would like to be "first" again, but I doubt it is something they'd seek at all costs. If they struggle to make profits, then yeah, the next Xbox might be released pretty soon. But if they can make the division profitable with the 360, I don't think there will be any rush. And with potentially all 3 consoles providing profitable business, I suppose it is possible that the generation could last longer (well, maybe the Wii gets a "successor," but besides that). So many factors can go into the decision though. With the Wii's success, perhaps Sony and Microsoft not to go so crazy with their next machines. Or maybe they will go crazy, and they'll have to wait until the technology they want is ready to be mass produced or widely adopted (maybe like some model involving digital distribution). I think it might still take another year or 2 before we get a get idea how long the generation will be. Probably unlikely that it will be a full 10 years or something like that, but I don't think we'll see companies trying to release consoles within 4 years of the previous release either.
we bought a ps3 for my step son in May. Honestly, I think a Wii would be alot more fun, the game obviously has better graphics, I love looking at the games, but when it comes down to playing them, they're the same games better graphics. The games didn't seem to improve much, and the only reason I see to upgrade is that you want to have the games you can't get on ps2. Wii is going somewhere new with the technology, i think they made the smart move. the ps3 is just more buttons, i can't and don't wnat to keep up.
