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

Yes I understand where your coming from but you can't discount the scale of matters.

In its launch year the 360 was losing roughly $1.2bn - so pretty equal to what the PS3 is losing for Sony at this point in time. Last reports hinted at around $500-750 million loss a year on the 360 brand, but this was circa 2005/2006.

3 years ago it was also reported that Microsoft make a loss of $130 per 360 sale.

For Microsoft:
A $1.2bn loss in your launch year of a console isn't a daunting figure compared to what you actually gross per year - Realistically you'll make this up elsewhere in a month. The figure eventually fell to below $750 million

For Sony:
A $1.2bn loss in your launch year is surely a daunting figure when your total annual profits aren't even $1bn. This figure has remained pretty static for the last 3 years.

I except perfectly that both Microsoft and Sony have other divisions to create revenue. The simply fact is that Microsoft's entire company creates enough annual revenue to dwarf the figure that one division loses. Whilst Sony's annual revenue is actually less than one of the divisions losses.

In the large scale of things, surely the PS3 is doing more harm to the Sony company than the 360 is doing harm to the Microsoft company?
I don't discount the scale of the matters, it's stating the plainly obvious to say a company the size of MS can absorb losses more easily than Sony can.

I just don't know why people continue to answer a question that I never asked. :confused:
 
I don't discount the scale of the matters, it's stating the plainly obvious to say a company the size of MS can absorb losses more easily than Sony can.

I just don't know why people continue to answer a question that I never asked. :confused:


These quotes

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

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.


Surely you can easily see how people got the idea that you were trying to say that in the large scale of things Sony's losses are comparable to Microsofts?
 
These quotes






Surely you can easily see how people got the idea that you were trying to say that in the large scale of things Sony's losses are comparable to Microsofts?
The mere fact that at least 3 people have completely misunderstood the intent would point to my original comment being a touch ambiguous.

I have tried to clarify more than once since however, yet the 'answers' continue to come. :p

If you read that second quote of mine (all of it rather than just the part that suits your interpretation ;)) then you will see that I acknowledge it's not on the same scale.
 
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Nintendo must be feeling pretty good about this, they've won this generation by a landslide.
Wii hardware is last gen(which is why its cheap and nintendo can sell it at a profit), and i dont think IMO Nintendo are really competing directly with the PS3 and 360. Generally the type of games are totally different and aimed at a different demographic.
 
Wii hardware is last gen(which is why its cheap and nintendo can sell it at a profit), and i dont think IMO Nintendo are really competing directly with the PS3 and 360. Generally the type of games are totally different and aimed at a different demographic.

Well, they might be reaching a more varied demographic (still mostly children I think) but that doesn't mean they're not competing with PS3 and 360. It's still the same industry and my point is they're making an absolute fortune. It makes you wonder what kind of consoles Sony and Microsoft are going to make in the next generation.

Yeah they've one it clearly by sales but long term is more of a concern, will people who bought the wii buy the wii 2?

Well, that's another can of worms but I don't think the Wii sales are going to make things any worse for Nintendo.
 
Well, that's another can of worms but I don't think the Wii sales are going to make things any worse for Nintendo.
N64 and GC were both considered flops, yet Nintendo remained profitable throughout that period. So it's fair to say Wii like sales are far from essential for Nintendo to be successful.
 
N64 and GC were both considered flops, yet Nintendo remained profitable throughout that period. So it's fair to say Wii like sales are far from essential for Nintendo to be successful.

Well, when I said Nintendo have won the console war I was talking about the sales and the profit they have made from the Wii since the thread is about the sales of one of its competitors.
 
Right, but the point was raised by Shamikebab that it may be a concern if the follow up doesn't sell as well as the Wii. You answered that, I followed on from your post.
 
Right, but the point was raised by Shamikebab that it may be a concern if the follow up doesn't sell as well as the Wii. You answered that, I followed on from your post.

I don't think it's that much of a concern considering the sales of the Wii compared to N64 and Gamecube.

It's not like Sony and Microsoft have shown that the next consoles are going to be worth purchasing at launch considering the RROD and Sony's pricing structure. I don't think Nintendo will be worried that much.
 
is the ps2 still outselling all three of this gen?

Its certainly the biggest seller of all time with 120Million sold or there abouts, but since release of this gen (X360) in 2005, I would have thought Wii and X360 have sold more in the same time frame, even if PS3 hasnt

just a guess though

I don't think it's that much of a concern considering the sales of the Wii compared to N64 and Gamecube.

It's not like Sony and Microsoft have shown that the next consoles are going to be worth purchasing at launch considering the RROD and Sony's pricing structure. I don't think Nintendo will be worried that much.

The ps3 has sold pretty healthily since launch - about on a par to what the PS2 did, so the pricing structure cant be that bad, and its unlikely Sony will release a new media drive in the next console, so by default purchase cost will be a lot lower (as the BR drive was one of the hightest part costs initially)
 
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Look at how much mobile companies paid for 3G licences?......

Sony have subsidised the PS3 to get it into peoples homes and what's the result of that? Bluray won the format war. That'll pay off considerably more for them in the future than the PS3 probably will.

Less narrow-minded vision plz :)
 
Nobody is being narrow-minded, if you think losing 3.3 billion dollars isn't a spot of bother for Sony, you're mistaken! Even with long-term contingency plans to allow for that, such as blu-ray winning the format war as many has already mentioned, it's still enough to make Sony break a sweat and have its shareholders asking difficult questions.

And what if Sony lost the blu-ray war, or its PS3's popularity never caught on? It could have easily gone the other way. Easily. Sony will be learning lessons from this, I can almost guarantee that for the PS4 it will simply be an extension of the current technology in the PS3 - and not a complete overhaul like the last three were. They simply do not want to be in a situation where R&D costs has spiralled out of control, exacerbated by unexpected and profound difficulties in regaining those costs. They lost all the money made off the profits from PS2 before the PS3's even got in its stride, that's incredibly bad and says a lot!
 
Look at how much mobile companies paid for 3G licences?......

Sony have subsidised the PS3 to get it into peoples homes and what's the result of that? Bluray won the format war. That'll pay off considerably more for them in the future than the PS3 probably will.

Less narrow-minded vision plz :)

While it helps undoubtedly - I doubt as it stands Sony as a corporation gain that much from BR (as it is actually a licensee along with a number of other companies)

( of course Columbia Pictures/Sony generate cash flow, but whether there is a lot of profit is another matter at this point anyway)

While it existed on the PS2, PS3 is really the start fo Sony Online trying to compete with Marketplace , while in 90% of the world the speed isnt upto much it will be getting a lot better within the PS3's lifetime and I should think this is more likely where Sony hope to gain

Of couse its a bother, but Knives - you also have to take into account that article didnt mention how much profit (over its lifetime) the PS2 has generated and continues to, although I would agree that the income generated year on year from the PS2 is reducing, its still a nice tidy sum. You really think there would have been much of an article if they had actually incuded these profits? I personally doubt it (there would have been much substance)

edit - going from the conservative estimate of 120 Miliion PS2's sold, Sony have generated in excess of £12 Billion - probably more like £20 Billion +, of course the profits wont be anything like that, its also not that concerning comparatively to spend under £2 billion on the successor
 
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