Sony game division makes a profit
- Thread starter JUMPURS
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Still a $ billion down for the year and relying heavily on PS2 sales; I'd hardly say it's a huge success story for the PS3.
Still as a business model, to cash in /rely on your exisiting older model to subsidise your new one isn't bad.
Still as a business model, to cash in /rely on your exisiting older model to subsidise your new one isn't bad.
They still can't afford to as the gaming division has lost them a lot of money overall.
I'd say it is a huge success for the PS3, considering it is already outselling the xbox 360 everywhere in the world apart from the US and is selling more in the world over all.
Not too bad for an over priced, overhyped, late machine with graphics that aren't as good as the 360 really
Also i suppose not needing to spend $1 billion to extend the warranty on machines plus all the machines that needed fixed within warranty would have helped it turn a profit quicker too.
As for relying on the PS2 sales to help it make profit, maybe MS shouldn't have abandoned the xbox on the day the 360 launched. I always said that was a huge mistake.
Soldato
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Yet Nintendo couldn't muster enough Wii's to meet demand over the course of an entire year?
Either Nintendo are utterly incompetent, or it was cynical marketing all along.
My money has always been on the latter.
Just doing a thread myself lol.
Anyway some more info last quarter the games division posted a loss of $96 million, this quater a Profit of $110 million. Looks like the decision to make the 40Gb has paid off in part with cheaper manufacturing costs. Maybe this will lead to a sooner than we think price cut on the PS3.
PS3 worldwide sales to retailers:
Playstation 3:
Q3-06 1.66m
Q4-06 1.91m
Q1-07 0.71m
Q2-07 1.31m
Q3-07 4.9m
Total:
10.49m sold ww to retailers up to 31Dec 07.
Forecasted Q4-07: 2.58m
Forecasted sales by the end of March 2008: 13.07m
Sony didnt expect to make a profit till Q4 2007/Q1 2008, so they are ahead of where they thought they would be.
Anyway some more info last quarter the games division posted a loss of $96 million, this quater a Profit of $110 million. Looks like the decision to make the 40Gb has paid off in part with cheaper manufacturing costs. Maybe this will lead to a sooner than we think price cut on the PS3.
PS3 worldwide sales to retailers:
Playstation 3:
Q3-06 1.66m
Q4-06 1.91m
Q1-07 0.71m
Q2-07 1.31m
Q3-07 4.9m
Total:
10.49m sold ww to retailers up to 31Dec 07.
Forecasted Q4-07: 2.58m
Forecasted sales by the end of March 2008: 13.07m
Sony didnt expect to make a profit till Q4 2007/Q1 2008, so they are ahead of where they thought they would be.
Nintendo making money is a bit moot though, as their hardware costs a fraction of the hardware that is in the Xbox 360 and the PS3.
I am gonna say it and as Kreeeee would say the fangirls (of which Kreeeee is one
) will throw a tantrum.The hardware inside the Wii is just a slightly souped up Gamecube.
Soldato
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Which surely should mean that it's easier to manufacture?
I'm clued up enough about Japanese manufacturing processes to know that if they'd wanted to meet demand, they would have. Nobody in the world is more efficient in these areas than the Japanese.
Ah yeah sorry, i picked you up wrong in your last post.
I think it means their income for the quarter was more than the outgoings for the first time, not that they've paid off all their debt.
Probably not, but the cost of R&D of the Cell would have been offset against maybe 5 years.
Even then though, the development costs of $400 Million are split between SCE, IBM and Toshiba, so at an equial split it is only $133million, so if it hasn't been paid off then it wont be far off it. Add to that, the PS3 is not the only use of the Cell.
So if I read this right, the games division now has swung into profit.. we know the PS2 is making some of that profit (if not a sizeable chunk) , so the reality is the PS3 is now just loosing enough to not quite offset the profit from PS2?
That would mean from a 'financial' stand point the PS3 is not doing very well at all, both Nintendo and MS now make a profit on all consoles...
It's hard to say that without coming accross as an anti-sony Fanboy, but it just is the facts..
That would mean from a 'financial' stand point the PS3 is not doing very well at all, both Nintendo and MS now make a profit on all consoles...
Which would make that the wrong conclusion.. which should be "What, after all this time the PS3 is still losing money, and if it wasn't for the PS2, they would surely be in trouble"...
It's hard to say that without coming accross as an anti-sony Fanboy, but it just is the facts..
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Also don't forget Sony sold $2.8b shares of it's banking and insurance business (http://www.mcvuk.com/news/28405/Sony-raises-28-billion-in-insurance-IPO) as a cash injection to bail itself out this year.
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So if I read this right, the games division now has swung into profit.. we know the PS2 is making some of that profit (if not a sizeable chunk) , so the reality is the PS3 is now just loosing enough to not quite offset the profit from PS2?
That would mean from a 'financial' stand point the PS3 is not doing very well at all, both Nintendo and MS now make a profit on all consoles...
Which would make that the wrong conclusion.. which should be "What, after all this time the PS3 is still losing money, and if it wasn't for the PS2, they would surely be in trouble"...
It's hard to say that without coming accross as an anti-sony Fanboy, but it just is the facts..
Microsofts profits are in the entertainment division, this includes the Zune, Zune market place, game for windows etc etc. Also the sale of Bungie and possibly Bizzare would also increase the profits for the entertainment division (not 100% sure but would make sense). Microsoft do not list any profits/losses made from the Xbox console as i said its all lumped into the entertainment division. I think you are correct in saying that the reasons the games division made a profit is the fact tat the PS3 looses less per console rather than break even or infact make profit. They have managed to reduce cost down from $800 approx to $400 approx in about a year, not bad for one year. The PS2 and PSP are supporting the PS3 in this early stage of its life until such a time that costs have reduced enough for the PS3 to make a profit, but isnt that just good business sense?
Anyway your remarks did not come across in any kind of fanboy way.
Or maybe it's just that Nintendo didn't expect their little gimmick to sell so much? Ockham's Razor, people!