View Full Version : Maybe this explains the upcoming 40GB PS3 neuter?
Mpegger
10-31-07, 09:33 AM
Sony Loses $876 Million in Gaming Division, Doubling Estimates (http://www.cepro.com/article/sony_loses_876_million_in_gaming_division_doubling _estimates/)
All I have to say is, *ouch*.:eek:
thideras
10-31-07, 09:37 AM
Ouch...
Falcon-K
10-31-07, 01:10 PM
A few years ago wasnt the gaming division one of the things keeping sony profitable?
rainless
10-31-07, 02:22 PM
A few years ago wasnt the gaming division one of the things keeping sony profitable?
That was a Fudgenuggets myth. A few years ago Spiderman and the rest of the movie division were keeping Sony afloat along with all their other copyrights, patents, and intellectual property rights.
FudgeNuggets
10-31-07, 02:31 PM
That was a Fudgenuggets myth. A few years ago Spiderman and the rest of the movie division were keeping Sony afloat along with all their other copyrights, patents, and intellectual property rights.
No, What I said exactly is this:, PS2=very profitable, movie division=very profitable, it is the consumer electronics and music division that was killing them. Then when the PS3 tanked and cost them a TON of money and left them with 1 profitable division, the movie division, whereas before they had two profitable divisions, the game and the movie. Spiderman netted them close to a billion worldwide (890 million to be exact) and will probably net them another 400 million in DVD/BluRay sales. I bought my BluRay Spidey 3 today :D
So you can see, if the PS3 lost them 876 million this year and Spidey has made them 890 million, then indeed Spidey has saved their asses. Perhaps he can save the money they've lost in their consumer electronics division too with DVD/BluRay sales (don't know the exact amount they're losing there). NOBODY can/will save their music division they may as well sell it or shut it down to SAVE money.
game set and match, Rainman.... back to the country club my friend, you need more pratice before you can win the Tournoi de Roland-Garros
Less the 200mill to make it...natch:)
I doubt sony got all the money from Spiderman. Marvel would never do it if they didn't get any money from it.
OC Noob
10-31-07, 07:48 PM
I doubt sony got all the money from Spiderman. Marvel would never do it if they didn't get any money from it.
Yeah, thats before any bills are paided so actual profits would be much less and thats what it takes to balance a loss.
Sounds like Sony is pretty much where everyone thought they would be, losing money. Possibly the only one its a suprise to is Sony and a few fanboys.
Cheator
10-31-07, 10:43 PM
20 bucks says this will never see the front page of SDF
http://www.sonydefenseforce.com/
That or they'll change it around to somehow benefit sony.
Mpegger
11-01-07, 05:04 AM
20 bucks says this will never see the front page of SDF
http://www.sonydefenseforce.com/
That or they'll change it around to somehow benefit sony.
I'm betting the only part of that article that would make it on thier website is this one.
PlayStation 3 sales increase year-over-year(!)
Everything else below that would of course be quotes from other articles to support that one line. :rolleyes:
Seriously though, I didnt start this tread as a Sony bashing thread, or a "The end is near for Sony!" thread either. I was just bringing fourth that information for those who can't quite understand why Sony would continue to "downgrade" a piece of hardware they invested so many hundreds of man hours and millions upon millions of dollars to develop, produce, and market.
Hopefully, everyone here already knows that most game console manufacturers lose money on the actual console sales. Its the software and accessories that they make money on after the shear number of units purchased are in the comsumers homes. But to lose $876 million??? If this were any other company, thier gaming division would have been closed down or had a MAJOR overhaul well before even half that amount was lost. Just what are they hopeing to gain in the long run? (Dont forget that these current gen systems have a planned "life span" of around 5 years or more...)
Hambone0750
11-01-07, 05:53 AM
20 bucks says this will never see the front page of SDF
http://www.sonydefenseforce.com/
That or they'll change it around to somehow benefit sony.
Funny articles aside, anyone notice the only games out of the 6 reviews to get 10/10 rating are Bio-shock and Halo 3 on the 360. That's a funny site to cruise.
FudgeNuggets
11-01-07, 07:28 AM
Sure most companies lose money on each console (except the Wii) but the amount Sony is losing on each unit is STAGGERING. MS actually either broke even or made a small profit with the core system and without digging up the actual numbers, I think they lost $70 per Premium where-as Sony initially was losing upwards of 300-400 on each PS3.
Funny articles aside, anyone notice the only games out of the 6 reviews to get 10/10 rating are Bio-shock and Halo 3 on the 360. That's a funny site to cruise.
Yes that sight gave me quite a few laughs. Giving Bioshock a 5 and Lair a 10? hmmmm
AngelfireUk83
11-01-07, 04:10 PM
Sony suffered from problems like the Rootkit fiasco, the faulty laptop batteries which they had to call back millions, DVD/Blue-ray is now added to that list and then the PS3.
No wonder they are selling the CELL chip design whatever to Toshiba that was to cut costs and now there's the 40GB PS3's for cheaper building costs.
VinnyTAMU
11-01-07, 04:25 PM
What that loss is staggering even for a company like Sony. I wonder if/when Sony will break even on the PS3.
TollhouseFrank
11-02-07, 07:21 AM
What that loss is staggering even for a company like Sony. I wonder if/when Sony will break even on the PS3.
In the words of an gamer of hte old-style: They pulled an Atari (Jaguar). Or, i could alternatively say "They pulled a Sega (saturn)".
FudgeNuggets
11-02-07, 07:40 AM
In the words of an gamer of hte old-style: They pulled an Atari (Jaguar). Or, i could alternatively say "They pulled a Sega (saturn)".
I don't think we're talking about as big of a collosal failure as the Jag or Saturn
PS3=overpriced, high power, excellent marketing, slightly late timing
Saturn=overpriced, high power, poor marketing, poor timing
Jaguar=ok priced, low power, poor marketing, poor timing
tenchi86
11-02-07, 02:53 PM
The PS3 is nothing like the Jaguar. Honestly, I think it still have a very good chance of doing decent this generation. No we won't see another PS2, I don't think it will kill Sony either. Also try and remember that the PS3 is still new and everyone besides Nintendo losses millions every time they launch a new system, but over the years they will hopefully make that back. Microsoft for instance has been losing money on the gaming division every year since the first Xbox was launched. (If my memory serves me correctly, really don't care to look and sure I will be corrected if I am wrong)
rainless
11-02-07, 04:38 PM
What that loss is staggering even for a company like Sony. I wonder if/when Sony will break even on the PS3.
Actually it's not a staggering cost for Sony.
Let me ask you this: Let's put all those patents, copyrights, intellectual properties, and the movie studio aside:
How much do you think it would take somebody to buy the "Sony" NAME? Just the name? Not even a Sony warehouse or fab plant to go along with it?
Sony might not be doing so well by McAffee or Quiznos standards... but they're doing just fine by Microsoft/Sony standards.
FudgeNuggets
11-02-07, 05:20 PM
You're dellusional Rainman.....
tenchi86
11-02-07, 07:27 PM
Actually he is correct about this. Despite losing so much this year, Sony has still pulled an overall profit of $787Million. Meaning Sony made it through the worst year of a console and still pulled a profit overall.
http://www.gamesindustry.biz/content_page.php?aid=29949
uzibear
11-03-07, 12:44 AM
people need to realize that sony has already lost, and badly; they're hubrus will take them down with their ship though; fine with me as i've been constantly ****ed at their proprietary measures on everything
tenchi86
11-03-07, 01:03 AM
people need to realize that sony has already lost, and badly; they're hubrus will take them down with their ship though; fine with me as i've been constantly ****ed at their proprietary measures on everything
Lost what? The console race is not a competition where the winners gets some medal. If the company makes a profit on their system and that was their goal then they won. If the company wanted to expand it's name whether it cost them millions or not and they achieve that then they have won. People seem to think this "race" is a situation where either you sell the most or you lose, when its not.
Mpegger
11-03-07, 04:52 AM
If you dont "win", eventually you fade away.
Forget Sega already?
Imagine Sony decides to not release a new system in 5 years because of this fiasco. Who will be left then?
Come on... you know who...
tenchi86
11-03-07, 02:28 PM
If you dont "win", eventually you fade away.
Forget Sega already?
Imagine Sony decides to not release a new system in 5 years because of this fiasco. Who will be left then?
Come on... you know who...
Sega faded away because they lost to much money, not because they did not sell the most system. Microsoft did all around terrible last generation, they sold very few consoles compared to the PS2 and they lost millions, but their goal was to make Xbox a household name and they achieved that. Don't forget this is a business, and just as Pepsi has stayed around even though Coke has outsold them, Playstation will stay around as long as the Playstation brand is still profitable.
No weeping here! Sony ousted my precious Sega and Saturn from the market, so whenever Sony messes up at something, I smile. :D Sony is being Wiipwn3d and it makes my heart sing. I still want my Shining Force 3 disc 2 and 3 english translations FFS! (and I'm not talking about playing the Japanese version while reading the english translation at a fan site either). :p
But a little more seriously, did Sony even have a real goal with the PS3 other than "compete with Xbox" and "make money"? Microsoft seems to have had a real goal and a specific target market, while Nintendo very clearly also had the same idea. Sony, dunno man. Losing almost a billion bucks has gotta get someone fired or demoted or something. There needs to be one of those "What now?" commericals for Sony. :D
AngelfireUk83
11-04-07, 05:12 AM
If you look at it Nintendo is the sort of winner so far they haven't lost money Microsoft did with the hardware red ring of death, Sony have due to lack of sales and cost for the hardware parts. Ninty have yet to suffer financial loss thou I suppose lack of building console for demand is there short fall even some reports suggest people are getting bored with the Wii's.
Lack of good games and Wii Sports is the only game they like so far thou Mario Strikers looks fun to play.
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