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Thread: Sony Lost $3 Billion on the PS3

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    ServBot (Level 11) TheDomesticInstitution's Avatar
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    Default Sony Lost $3 Billion on the PS3

    http://videogames.yahoo.com/feature/...he-ps3/1223467

    That sucks.

    I have a Wii and PS3- no 360 though.

    How does this loss compare to past systems or other current ones? Do you care or could you give 2 fucks?

    It's a pretty good Blu-Ray player and cost effective compared to other players.

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    Hey look, some good news!

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    i dont know if theres much they can do now, price dropping wont help because of manufacturing costs. more exclusives? maybe. they should just count their losses and learn from their earlier consoles (or from other companies).

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    I don't feel sorry for em'.

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    I'm glad....After doing so many people wrong with the PS2....Sony is finally taking the loses....
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    Banana (Level 7) smokehouse's Avatar
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    I figured they would lose their shirt on this unit...it's just too much. It's too costly, it basically requires a HDTV and doesn't have enough decent titles. There are simply too many gamers without HD sets right now and without one, you're really missing what the PS3 has to offer. Add to those things having 4 different models since release and it creates even more consumer confusion...

    In other words...they really F'd up on this one.


    On a lighter note, I picked one up during the $100 Wal-Mart gift card promotion...$299 for a full featured Blu Ray player is a great deal.

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    ServBot (Level 11) TheDomesticInstitution's Avatar
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    Quote Originally Posted by smokehouse View Post
    I figured they would lose their shirt on this unit...it's just too much. It's too costly, it basically requires a HDTV and doesn't have enough decent titles. There are simply too many gamers without HD sets right now and without one, you're really missing what the PS3 has to offer. Add to those things having 4 different models since release and it creates even more consumer confusion...

    I agree. I've really only bought 1 game on the system since I've got it. I've used it more as Blu-Ray player- and considering the prices of other BD players its a fairly good deal.

    In fact, when the PS3 was 1st released i said I would never buy a $600 video game console. Of course, to play video games was a secondary reason for buying it... and Blu-Ray players really haven't come down in price.

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    Insert Coin (Level 0) EdFick's Avatar
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    I picked up a PS3 earlier this year, mainly because it was the only system with a worthy baseball title (the Show). The fact that it's a blu-ray player also interested me, although I only use that sparingly.

    Sony knew going in that they would take a huge hit on the system. Their main goal was to win the blu-ray HD format war, which they did. While 3 billion it a lot to lose, they will recoup much of that from game sales and bluray rights.

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    "...requires a HDTV..."

    Hardly, at least if you want your movies in 1080p. I was bless with picking up a 60gig for $300 off of ebay, and when I went to go rent a game to see what it could do, I was shocked at how many games didn't offer 1080p when Sony was forcing it and HDMI down our throats. Heck, I don't think any of Sony's own games offer 1080p.

    On the other side, I mainly got it for upscaled PS1 games, and let me tell you, FF7 in HDMI looks amazing. It's a bit hit or miss, but there are a lot of PS1 favorites that look fantastic.

    Jason
    Last edited by Dangerboy; 06-26-2008 at 11:01 PM.

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    ServBot (Level 11) exit's Avatar
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    Can't really say that this surprises anyone, but I'm sure they were expecting this to begin with. The PS2 is still selling pretty well and the PSP isn't doing too bad either, so it could be a lot worse for them if they didn't have those backing them up.

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    Banana (Level 7) smokehouse's Avatar
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    Quote Originally Posted by Dangerboy View Post
    "...requires a HDTV..."

    Hardly, at least if you want your movies in 1080p. I was bless with picking up a 60gig for $300 off of ebay, and when I went to go rent a game to see what it could do, I was shocked at how many games didn't offer 1080p when Sony was forcing it and HDMI down our throats. Heck, I don't think any of Sony's own games offer 1080p.

    On the other side, I mainly got it for upscaled PS1 games, and let me tell you, FF7 in HDMI looks amazing. It's a bit hit or miss, but there are a lot of PS1 favorites that look fantastic.

    Jason
    I stand by what I say...it basically requires a HDTV...

    I have 2 titles for the PS3...Gran Turismo 5p and Metal Gear solid 4 (funny enough both are 1080 games)...

    Other than that...I have the thing for a Blu Ray player as do many other PS3 owners, had the unit not played BR titles many that are current owners would have skipped over it completely. I use my PS3 at around a 75-25% ratio...75% BR, 25% games.If I didn't have a HD set my PS3 would loose 75% of it's usefulness. For me no HD set = little use for a PS3.

    Now, my % may be different than others but I imagine it's safe to say most PS3 units are used heavily for BR playback...which requires a HD set...there aren't enough good titles out there to make the PS3 a stand alone unit...

    Thus my "basically requires a HDTV" comment...

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    I would agree, for movies (either bluray of up converting dvd's), you really need to have a decent HDTV to get the most out of a Ps3. For games though, even though I have a 46" 1080P set, I prefer using my 22" PC's LCD when playing ps3 games. It doesn't do true 1080P, but it still looks great via HDMI to DVI converter.

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    Quote Originally Posted by The Shawn View Post
    I don't feel sorry for em'.
    me either
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    Get BIT!

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    If the lifespan of the console is what Sony predicts (they want to ride this one at least as long, if not longer than their previous marketplace standard of 10 years per console) there's a chance that they could come close to putting a dent in their losses in the long-term.

    Will it ever be a cash cow?

    Not many consoles ever are.

    The money is in the software, and with digital distribution growing, that's even more profit to the bottom line for Sony, Microsoft and Nintendo.

    In any case, in terms of profit off of console sales XBOX 360 isn't making Microsoft any money either, so I don't really see the point on "rubbing it in" to either Sony or MS ... these corporations know what they're doing, they know what it costs to make and sell something like a PS3 down to the last screw.
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    Quote Originally Posted by Frankie_Says_Relax View Post
    In any case, in terms of profit off of console sales XBOX 360 isn't making Microsoft any money either
    Indeed... I've heard Microsoft has lost $6bn on the Xbox consoles over their lifetimes (though I imagine a chunk of that is swallowed by XBox Live costs).

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    I can't help but think if Sony released there console at 300-399 the gaming landscape would be so different.
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    I've been wanting one out of pure for a while now, but still haven't pulled the trigger as there's 2-3 titles I want to play that aren't on the 360.

    I'm sure I play much more current gen games than the majority of the gaming population, and if I can't find any justification to buy one I can only imagine how the average gamer feels. In short, I ain't surprised.

    Sony REALLY needs to fix their exclusive title lack, exclusives were the reason to get a PS2....

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    Cherry (Level 1) modest9797's Avatar
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    They really didn't need the Blu-ray player. All it did was increase prices and the price to make them. What happens when they desperately need a price drop and they are close to the price of making them?
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    Quote Originally Posted by modest9797 View Post
    They really didn't need the Blu-ray player. All it did was increase prices and the price to make them. What happens when they desperately need a price drop and they are close to the price of making them?
    They didn't "need" the DVD player in the PS2's architecture either, but that wound up being as much of a lauded "multimedia" feature/trojan horse for building-in sales as the Blu-Ray has been for the PS3. (And I suppose by "as much of" I mean, some people loved DVD playback on PS2, others didn't. Some people love Blu-Ray on on PS3, other's don't.)

    And arguably, the PS3 won the high-def war for Sony as film studios really seemed to be looking at player install rates over just about anything else.

    And while I could also take it or leave it in terms of it's movie disc playback, I think that the Blu-Ray disc medium makes perfect sense from a software development standpoint in terms of their massive size.

    I've always agreed that the PS3 was cost prohibitive at it's inception, and remains relatively high now for a full-featured unit ... but it's been proven in a pure numbers game time and time again - considering all that's built into it, and what one would have to spend to make an equivalent multimedia/gaming system out of an XBOX360 (WiFi, HDMI, HDD size, HD movie disc playback, etc.) ... it's really not a bad value in terms of built-in components/functionality.
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    Good.

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    Quote Originally Posted by smokehouse View Post
    I figured they would lose their shirt on this unit...it's just too much. It's too costly, it basically requires a HDTV and doesn't have enough decent titles. There are simply too many gamers without HD sets right now and without one, you're really missing what the PS3 has to offer. Add to those things having 4 different models since release and it creates even more consumer confusion...

    In other words...they really F'd up on this one.
    Yes they did. The PS3 is a good system, but it competing against better game systems. I have all three, and my PS3 gets limited play. The problem is that it tries to do everything and nothing spectacular. It is a game system...one with limited exclusives. It is a movie player for Blu Ray...but the movies are still like 25 to 30 buck a piece. It also is frigging expensive in a time when the economy is bad. $400 bucks for a gimped game system is way too much.

    Sony missed the boat with what the consumer base wanted. I mean just having the dam thing backwards compatible is a no brainer...instead they went the cheap route and pissed off a bunch of people.

    The PS2 is one of my favorite game systems, it baffles my mind how bad Sony has screwed the pooch on this one.


    ....speaking of cheap, how about a price break Sony now that your cheapest system is $100 more than your competator?
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    Even if the PS3 was the same price as their competitors, I doubt that it would boost it ahead of them, due to the lack of games and poor consumer confidence. At this point, I would say with confidence that they lost to the Wii and Xbox 360 (in North America, at least). Already we are seeing that MGS4 is not going to shift a lot of units beyond the launch of the game (at least that is evident in Japan and Europe, it will be a few weeks until we know for sure in the US). Unfortunately, Final Fantasy 13 is still a long way off, and it will not likely boost their marketshare for the time being.

    And as for the argument that it is a Blu Ray player, well, Blu Ray is not going to be a DVD killer. When the PS2 came out, many got it just for the DVD player, but let's face it, DVD was designed to be a shift away from the archaic VHS format. Too few see the benefit of Blu Ray over DVD to justify paying an extra $10 for a movie. I know that many analysts see little reason why Sony would jeopardize their video game business to try and prop up a minor upgrade in video discs. And as we have seen over the past year and a half, it has done just that.
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    Maybe this will teach sony the lesson they need most. Never take your established customers for granted by believing they will buy your product reguardless of cost. Not crying over this spilt milk here.

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    THAT is what sony gets for shutting down LIK SANG!!! It might have been almost 2 years but I haven't forgotten and I never will.

    LONG LIVE LIK SANG!!!

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