PS3 costs sony 3.3bn dollars - and it may struggle to earn the money back

[movingtables]

Just an Interesting article on what Is at stake these days.
although this particular story Is based on the Sony PS3, It worth noting that
the Xbox/360 project Is equaly scary In losses also.

http://blogs.guardian.co.uk/games/a...d_it_may_struggle_to_earn_the_money_back.html

 

[wedgie]

I'd class $6bn as a little more than equally scary.

Figures like this make you wonder how they ever make money.

 

[Streeteh]

Difference is, MS will make that money back in other departments within the next couple of years, Sony as stated will struggle to get it back for years to come.

 

[Marcos]

Their own fault


Hows Nintendo doing?

 

[wedgie]

Difference is, MS will make that money back in other departments within the next couple of years, Sony as stated will struggle to get it back for years to come.

You mean non Xbox divisions within MS? Any reason why this doesn't also apply to Sony?

 

[Streeteh]

You mean non Xbox divisions within MS? Any reason why this doesn't also apply to Sony?

Sony, while a very profitable company (aside from the playstation division), doesn't achieve anywhere near Microsofts yearly profits.

 

[Neoni]

You mean non Xbox divisions within MS? Any reason why this doesn't also apply to Sony?

Hes on about microsoft as a business, as a whole. sony dont earn close to what MS make in terms of software. and other hardwares.

 

[wedgie]

Hes on about microsoft as a business, as a whole. sony dont earn close to what MS make in terms of software. and other hardwares.

I know, but you still can't just say 'oh well MS will make up money elsewhere' and not apply the same to Sony. Obviously it's not on the same scale, but then their debts aren't on the same scale either.

 

[Margaret]

PS3 costs Sony 3.3bn?
What? did they buy 2?

[ba dum tisssshhhh!]

lol

 

[JUMPURS]

Difference is, MS will make that money back in other departments within the next couple of years, Sony as stated will struggle to get it back for years to come.

Sony struggle? While they do not make what MS make, Sony Pictures are one of the top 2 movie producers in the world iirc. Add to that Sony BMG, then you have Sony Hardware, plus SCE (with all the devs they own, i think it was about 14 at last count). Then you have BluRay which is only going to increase revenue. i don't think they will struggle too much.

 

[JUMPURS]

lol

lol thats quite good lol

 

[Neoni]

I know, but you still can't just say 'oh well MS will make up money elsewhere' and not apply the same to Sony. Obviously it's not on the same scale, but then their debts aren't on the same scale either.

You can say that though, MS are clearly making enough and Xbox will hardly cripple them in terms of earning money back.

and Sonys amount of loss, of course it will be on the same sort of scale they have to compete with MS churning out thousands of consoles. So there equally losing just as much, and not earning it back fast enough.

 

[AtreuS]

Remember the whole strategy is long term with these guys. The plan is to eventually dominate the market and by so doing claw back all the R&D money and then make vast profits.

In the future almost all gaming will end up as pay per play ( much like your sky subscription ) with it either being piped to you or having all games locked down in a steam type environment. No account... no game. Just look at WoW for example... to play you HAVE to pay... no way around it. ( yes i know there are private servers but thats not playing properly )

Those who get the "standard" first will be in a position to dominate the whole market for years to come.

 

[Streeteh]

I know, but you still can't just say 'oh well MS will make up money elsewhere' and not apply the same to Sony. Obviously it's not on the same scale, but then their debts aren't on the same scale either.

The differences in their bank balances and income outwiegh the differences in loss. I honestly think MS will simply shrug off their 6bn loss while Sony are probably sweating about their 3bn loss. MS really is THAT much more wealthy and profitable.

 

[Abooie]

Saw these gaming profitability numbers on neogaf:

FY* Sony** Nintendo Microsoft
1998 974,000,000 629,000,000
1999 1,130,000,000 645,000,000
2000 730,000,000 421,000,000
2001 -409,000,000 726,000,000
2002 623,000,000 800,000,000 -750,000,000
2003 939,000,000 560,000,000 -1,191,000,000
2004 650,000,000 316,000,000 -1,215,000,000
2005 404,000,000 777,000,000 -485,000,000
2006 75,000,00 894,000,000 -1,262,000,000
2007 -1,969,000,000 1,489,000,000 -1,892,000,000
2008 -965,000,000 2,193,000,000 532,000,000
Totals 2,182,000,000 9,450,000,000 -6,263,000,000

I'm quite surprised with the dominance of the Playstation brand that Sony haven't been printing cash and it shows how shrewd Nintendo really are.

Apologies about the formatting; working on it.

 

[dannyjo22]

Remember the whole strategy is long term with these guys. The plan is to eventually dominate the market and by so doing claw back all the R&D money and then make vast profits..

They all say that and its BS to be honest. Neither company will make back what it has lost. How many consoles will it take before MS recoup the money they have lost through the first two efforts?

Then you have to factor in what the 3rd one will cost to make and add that to the losses. I highly doubt xbox3 will make the overall effort profitable.

Then you have nintendo that are cleaning up are you saying they dont have a long term view? I suggest their long term view and way of working is better than the rest because they have been continually building consoles for years and making a profit right away.

 

[wedgie]

You can say that though, MS are clearly making enough and Xbox will hardly cripple them in terms of earning money back.

and Sonys amount of loss, of course it will be on the same sort of scale they have to compete with MS churning out thousands of consoles. So there equally losing just as much, and not earning it back fast enough.

The differences in their bank balances and income outwiegh the differences in loss. I honestly think MS will simply shrug off their 6bn loss while Sony are probably sweating about their 3bn loss. MS really is THAT much more wealthy and profitable.

I don't deny any of this, my point was simply that Sony make money from other divisions, as do MS.

Although I don't know why you've decided Sony are "equally losing just as much", when the figures are Sony $3bn down, MS $6bn down. That $6bn is over the whole Xbox venture though, but if we're counting last gen then Sony are easily up.

 

[nikebee]

You mean non Xbox divisions within MS? Any reason why this doesn't also apply to Sony?

Microsoft's have a yearly profit of roughly $14 billion while Sony's profit is only $1 billion.

These are company profits as a whole, not exclusive to 360 or PS3 areas.

Sony's Latest Financial Report

Microsoft's Latest Financial Report

Microsoft is one of the biggest companies in the world, Sony comes nowhere near it in the long run.

 

[wedgie]

Microsoft's have a yearly profit of roughly $14 billion while Sony's profit is only $1 billion.

These are company profits as a whole, not exclusive to 360 or PS3 areas.

Sony's Latest Financial Report

Microsoft's Latest Financial Report

Microsoft is one of the biggest companies in the world, Sony comes nowhere near it in the long run.

As I've said, I was making no comment on the scale of either company as a whole, I was simply saying that both make money from other divisions.

You must think I'm retarded if you believe I'm honestly trying to put Sony against MS in terms of wealth.

 

[Jabbs]

Anyone that thinks Sony can compete money wise to Microsoft is barmy, but on the other hand they may lose on consoles but don't they take a profit from games sold ?