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Denver, 3:48 AM
Mon Nov 16
18 posts in the last 24 hours
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10/30/08
Why did MS virtually buy themselves into this market last gen? Because this the battle is much bigger than merely the game console. more than two thirds of the expenditure on telecom, media and entertainment (I'm speaking based on UK data) is done on things which can be combined into a home entertainment center, something which both Xbox and PS3 are aspiring to project themselves as.
10/29/08
If Sony want to subsidize console sales, so much the better for third parties and for consumers. What's it to them if Sony makes a net profit on the PS3 or not. If the PS3 is in so much trouble, does it mean it's life will be shortened or that there will not be a PS4? It's doubtful, since it will always have strong brand power-- the exact thing that the Xbox is aiming for. Whatever dubious businesses were made in the past, the present would seem to suggest making the most of your assets.
Sony was hoping the PS3 would drive growth for the whole company for the long term. Even if it doesn't wind up doing that, a greater return on the investment would result from further support of the PS3, not less.
10/29/08
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10/29/08
The point isn't whether they start selling the unit at a profit, it's whether they make back the costs that they have already incurred (through R&D, subsidized hardware sales, marketing and the costs of building up production capacity).
The analyst is saying that they will never make back the money they have spent on the PS3 overall.
In fact, I don't think Microsoft have even reached that point yet with the 360. They are turning a profit now, but they haven't yet reached the point where they have paid for the several years of losses they suffered when developing and launching the 360.
10/30/08
Not to mention the losses they suffered with the original X-box (particularly due to the expense of the HDD), which caused them to dump all support and development for the system just as soon as they could.
10/29/08
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10/29/08
I guess they should have pushed a bunch of defective outdated technology in a plastic box and sold it as something "New". They'd have definately made a ton of money that way, but then I wouldn't have an analyst telling me that I made a good "buy" in the consumer sense of things.
If only it worked the PS3 way with Ferarri's, Yachts or other consoles. Actually too bad ALL things are not stuffed with new things that cost a lot, but I have to pay very little for it.
10/29/08
The PS3 made a huge contribution with the winning next-gen format Blu-Ray Disc, and the PS3 has really picked up and is actually selling better than anyone would expect. There is a set of some really good titles for this holiday season that will move console sales and PSN is really improving.
I can say without a doubt that Sony has the ability to have 20 million units sold (all together) by the end of March. I mean God of War III will move systems for sure because there will be die hard fans of the series waiting for it to come out so they can buy their PS3's to play it.
10/29/08
You missed the point entirely.
Who cares how much they sell? Every PS3 they sell now just hurts them more. They invested a huge amount in R&D for the PS3 tech, Cell, and Blu-ray stuff, and they still can't sell PS3s at a profit. It'll take them several years just to recoup the dev costs, even assuming they can make the thing profitable. Which is no guarantee. You can't just assume that the manufacturing costs well decrease fast enough to yeild a profit especially if Sony is forced to drop prices to stay competitive.
10/29/08
You also missed the point. Even though Sony loses money on the PS3 itself, the idea is that the owner of the PS3 will spend money on games, accessories, etc. And that's where Sony makes back most of the money. Economics 101.
10/29/08
Not so. The games and accessories also have costs associated with them. Their potential profits are reduced because they were developed in-house and required more dev money. Additionally, in today's market, Sony can't make back enough money with first party games unless they appeal to the casual crowd, and big time. Which do you think made Ninty more profit- Twilight Princess or Wii Fit? They can probably make several mass-market casualware games for the cost of one hardcore game, yet still enjoy massive profits on any one of them.
10/29/08
If your honestly -THAT- thick enough you would think that, then you need to be posting at GameFAQ's, not here. Sony's own financial books pretty much say what this analyst says.
@valkyriex:No he's not. Sony is third place on attachment rate and the PSP's attachment rate is a joke and a half. The owners of PS3's are not spending the extra money on games, accessories, etc and so there's little to offside the huge loss. That's 101 also.
10/29/08
Saying LBP and Resistance will move consoles? If GTA couldn't do it for either console then these won't. LBP will inevitably be the Viva Pinata of the PS3, cutesy enough for casual but the core gamie (creation) is too complex for casuals.
10/30/08
Just because this "analyst" guy sais something, it doesn't mean it's true, hes probably not even a real games to begin with.
10/30/08
You also don't know what your talking about. And analysts have access to a shitload more information then you, hard numbers.
10/30/08
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10/30/08
also, the problem isnt the level design, thhe designing is actually simple. anybody can make things. may not be as good, but things none the less. havent you read posts about people saying "im getting little big planet, fallout 3 and resistance 2 before the end of this year." i have plenty of times, casualy gamers find little big planet to be a refreshing relapse to a fun they havent had in years that they couldnt find from shooters. w/e you are indeed a fanboy.
10/31/08
10/29/08
And to avoid the Kool-Aid: I had a PS2 for a week before selling it, because I was playing my other machines. Also Kool-Aid is hard to find in the UK. Not imported by most people.
10/30/08
10/29/08
I wonder who will ever break the 2-console-cycle-king then-drops-the-ball-on-the-third... console chain. Nintendo wasn't able to do it. Sony wasn't able to do it. Hmm MS??!
10/30/08
Excellent question! I'm a PS3 owner myself and previously owned both of the previous PlayStations, but before that I owned a SNES (and a NES before that), so I'm no stranger to jumping ship when it suits me. Indeed, I very nearly bought an XBOX360 this generation.
Nintendo's phenomenal success with the Wii puts them in a strong position to retain the lead with the next generation of consoles, but I have a sneaking suspicion that someone like Apple or Google will release a shiny new gaming machine that thumps everything else into dust. As long as we're still playing great games, we'll always be "the winners" regardless of the corporate situation.
10/29/08
Thank you Sony, Nintendo and Microsoft. You're the best!
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10/29/08
mmmm.... I'm not so sure about what are you saying, the sales on the first year of the BD are far superior in comparison of the fist years of sales of the DVD, and is a really strong HD format
10/29/08
The same can not be said of Blu-ray, the upstep is not as large and the adoption rate has not spurred the same level growth.
10/29/08
Hmm...Well all good points. I'm not too knowledgeable about Sonys productivities in those other fronts, so you guys could be right. All I'm saying is that Sony is not merely a game manufacturer. They have many other revenue streams so the lack of sales or the improfitability of the PS3 isn't going to kill them per se. They also have...what else: Cell phones, Cameras,computers ect. However, this is merely me guessing here. You guys seem way more knowledgeable about these other kind of matters than I.
10/29/08
:)
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10/29/08
Once you factor in the R&D, manufacturing and marketing costs, there is pretty much no way they will ever turn a profit from the PS3.
Even if its sales pick up, and it is still selling well in five years, it will be an impossible struggle for them to make back the costs that they have incurred.
10/30/08
10/31/08
11/05/08
[vgchartz.com]
Note that the Christmas sales jumps are a little bit off-centered, so the PS3 should expectantly jump up closer to that PS2 hike pretty soon.
11/10/08
10/29/08
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10/29/08
"PS3 might not be selling well, but the PSP is selling well enough to compensate that."
*chortle*
10/29/08
10/29/08
How much did sony lose last year? wasn't it like 4 billion. I don't ever see them making that back up with the ps3, software or not.
10/29/08
10/29/08
Goddamn it.
10/29/08
Very true. When you're taking a loss on each system, every sale is a paper cut, especially if you're not compensating with software.
They should cut Blu-Ray prices and have another Blu-Ray giveaway during the holidays.
10/29/08
:D I think you should send them back that $200 and help them out a little or PSN may not be free for much longer :( *cries*
I'm being a little facetious but you get what I'm saying right? They need more revenue streams to offset the cost of the console.
10/29/08
PSP sales are good worldwide, just because it is not DS level WW does not mean it's not doing well. And PSP is not sold at a loss.
10/29/08