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Author Topic: Sony is not making money  (Read 1643 times)
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« on: May 15, 2007, 01:40:41 PM »

SINMM?

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PlayStation 3 is being outsold by Wii by about two to one, causing Sony's game division, its second-largest by revenue, to post a fourth-quarter loss of 121 billion yen and a record 245 billion yen deficit for the fiscal year, according to five of the 11 analysts. The loss may exceed profits from electronics such as Bravia televisions, and the movie unit, whose "Spider-Man 3'' generated record box-office sales when it opened this month.

And there's rumors floating around that Metal Gear Solid 4 is being delayed till early next year: link

Yeowch!
« Last Edit: May 15, 2007, 01:42:32 PM by warning » Logged
Calvin
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« Reply #1 on: May 15, 2007, 01:46:15 PM »

They better hope Blu-Ray takes off. That was the whole point of tihs debacle after all...
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« Reply #2 on: May 15, 2007, 02:23:35 PM »

I'm sure if someone analyzes it enough it can be turned around into $ony is making money-  I wonder how long their spin team will take to respond to the loss.
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« Reply #3 on: May 15, 2007, 02:27:40 PM »

Quote from: CeeKay on May 15, 2007, 02:23:35 PM

I'm sure if someone analyzes it enough it can be turned around into $ony is making money-  I wonder how long their spin team will take to respond to the loss.

What loss?  You're thinking short term, the PS3 is long term!

Quote
"We didn't get into PS3 for the first six months of 2007 - we're into this for the next 10 years and beyond," said Sony President Jack Tretton.  "A million units one way or another at this point isn't going to worry us."

Analyst Billy Pidgeon backs up Sony's claim, saying: "The PS3 is ahead of the market, while the Xbox 360 and the Wii were designed for immediate market impact, I believe sales of Sonyt's next-gen console will ramp up in 2008."

See?  All is well!
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« Reply #4 on: May 15, 2007, 02:31:50 PM »

When I saw last month's sales in Japan, it was obvious things were going extremely bad for Sony.  PS2 sales exceeded PS3 sales... if the PS3 isn't even going to do well on home turf, things are seriously bad.  I forgot to look, but I'll bet the PSP is outselling the PS3.
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« Reply #5 on: May 15, 2007, 02:32:22 PM »

Quote from: unbreakable on May 15, 2007, 02:31:50 PM

When I saw last month's sales in Japan, it was obvious things were going extremely bad for Sony.  PS2 sales exceeded PS3 sales... if the PS3 isn't even going to do well on home turf, things are seriously bad.  I forgot to look, but I'll bet the PSP is outselling the PS3.

It did last month. By a lot.
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« Reply #6 on: May 15, 2007, 04:55:51 PM »

Well, of course they haven't included the amount of discipline taught to children in their calculations, so those numbers are skewed.  Besides, what's 245 billion yen anyway?  It's like $35.
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« Reply #7 on: May 15, 2007, 05:32:35 PM »

Quote from: Calvin on May 15, 2007, 02:32:22 PM

Quote from: unbreakable on May 15, 2007, 02:31:50 PM

When I saw last month's sales in Japan, it was obvious things were going extremely bad for Sony.  PS2 sales exceeded PS3 sales... if the PS3 isn't even going to do well on home turf, things are seriously bad.  I forgot to look, but I'll bet the PSP is outselling the PS3.

It did last month. By a lot.

We shouldn't loose sight of the fact that even with it's recent price drop the PSP is an expensive handheld. Which means Sony can still turn a decent profit from it's sales. Ironically, it's beginning to look more and more like the PSP is going to be Sony's only saving grace this console gen.
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« Reply #8 on: May 15, 2007, 05:52:20 PM »

I kind of want a psp. Maybe I will help sony make money?
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« Reply #9 on: May 15, 2007, 05:57:15 PM »

The whole "PS3 will be around for 10 years" thing is just another example of Sony's arrogance along with the thought that people whould have no problems dropping $600 on a console. But I guess they don't have much of a choice now. The system is designed, made, and now launched. You made your bed Sony, time to sleep in it.
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« Reply #10 on: May 15, 2007, 06:07:27 PM »

Quote
"We didn't get into PS3 for the first six months of 2007 - we're into this for the next 10 years and beyond," said Sony President Jack Tretton.  "A million units one way or another at this point isn't going to worry us."

Analyst Billy Pidgeon backs up Sony's claim, saying: "The PS3 is ahead of the market, while the Xbox 360 and the Wii were designed for immediate market impact, I believe sales of Sonyt's next-gen console will ramp up in 2008."

Awesome, Sony won't release the PS4 for at least ten years!
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« Reply #11 on: May 15, 2007, 06:19:29 PM »

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The game division alone is expected to post a quarterly loss of 121 billion yen ($1.01 billion) and a record 245 billion yen ($2.04 billion) for the full fiscal year.

The scary part? Just imagine how much money they would've lost had the PS3 had actually been popular. I mean, Sony's losing what, $200-300 on each console sold?
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« Reply #12 on: May 15, 2007, 06:21:29 PM »

Isn't the majority of Sony's losses this year due to the extreme amount of laptop batteries they made that EXPLODE?

gellar
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« Reply #13 on: May 15, 2007, 07:42:02 PM »

OMGz... I want an exploding laptop. That is so much cooler than those lousy red rings. slywink
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« Reply #14 on: May 15, 2007, 11:03:29 PM »

Quote from: gellar on May 15, 2007, 06:21:29 PM

Isn't the majority of Sony's losses this year due to the extreme amount of laptop batteries they made that EXPLODE?

gellar

I believe the costs for that were in their 2006 financials.
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« Reply #15 on: May 16, 2007, 12:53:15 AM »

Quote from: gellar on May 15, 2007, 06:21:29 PM

Isn't the majority of Sony's losses this year due to the extreme amount of laptop batteries they made that EXPLODE?

gellar

That was a feature, not a problem  icon_wink
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« Reply #16 on: May 16, 2007, 03:53:22 PM »

Remember all those PS2's Saddam Hussein purchased?  I think it's obvious what's going on here: the entire Iraq war was pushed by Microsoft in an attempt to prevent the PS3 from succeeding.  Had Saddam remained in power, Blu-Ray would have swept across the Middle East.
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« Reply #17 on: May 16, 2007, 05:43:08 PM »

Um, the PS2 was around for how many years now?  It's a very profitable system and games are still coming out for it.  I recall they wanted to keep it around for 10 years too, the same with the PS1.  It's kind of a how much value will you get out of your system thing.

10 year lifespan is actually a very good target to shoot for with a console company, the longer a console is on market, the more money it makes and the cheaper it is to make media and games for it.  Also note that doesn't mean that there won't be a PS4 before that 10 years is up, it just means they want to keep the PS3 out there and selling for that many years.  Good backwards compatability in a next gen console is important for that because it provides incentive for people to still buy games for the older system and for people to upgrade to the new one.  As you already can see with the PS2 still being popular, it's not a bad idea.  I find it funny how a good business decision is spun by people to sound like such a bad anti-gamer, sony kicked your dog kind of statement.

I also find it funny that people are now doing the whole substitute dollar sign for Sony now instead of MS.  Hell, I even found it funny when they did it for MS.  I mean, duh.  These companies want to make money.

It's pretty damn clear that Sony is going to post a loss.  So has MS, so has any company that makes high end console systems.  I recall there was an article saying how despite how the 360 is clearly pulling ahead, it's still posting a loss for MS.  The main thing is, these two companies both have ridiculous piles of cash and other markets to draw from, and it's clear that both companies are willing to spend to keep in this gaming market.  That's a very good thing for us gamers.  If you really think about it, I'm sure a lot of the features for the 360 that were added later, and a lot of the 360's problems wouldn't have been fixed if it weren't for the direct competition of the PS3.  Honestly, if there was no one else besides Nintendo competing, it's likely MS wouldn't have bothered extending its warranty.  Why?  Because when their 360 breaks and they're forced to buy a new console, they start to wonder

Will Sony pull ahead?  Who knows.  But despite things being pretty bad for Sony, it's not all doom and gloom.  They've got other products, and as said above they have a longer term strategy with the PS3, not to mention a strategy not solely focused on gaming (which is a problem)

The clear failure here was a short term strategy.  The expensive components, the bluray player, all were very long term, perhaps too long term which pushed the price up to $600, that's seriously bad for the short term.  This means they rely on exclusives even more.  But the problem with this generation is that games cost so much that they can no longer rely on third party exclusives.  So what does that mean?  More first party, or third party fully funded development.  MS already hit upon this with Bungie first party titles, and Gears of War for third party funded games.  Sony has yet to announce it's big first party games, or any third party funded games.

I suspect we'll see a lot of new things from both Sony and MS when the summer game convention scene is upon us.  I'm actually not too interested in the PS3 stuff, I'm more interested in the PSP stuff now that it's gaining steam.
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« Reply #18 on: May 16, 2007, 06:08:05 PM »

First, I don't think backward compatibility is as big a draw as it's made out to be.  Sure, it's kind of nice to know your new machine will play your old games, but I don't think it actually reaches the level of drawing anyone to a system.  Nobody is buying a PS3 over an XB360 based on the fact that it will play their PS2 games. 

And as I frequently point out, the strong sales of the PS2 over the PS3 continue to demonstrate how Sony has not sold potential customers on their latest console.  You have somebody clearly in the market for a Sony console: if they decide to proceed with the PS2 purchase, that is a complete failure on Sony's part to close the deal, and they have lost a potential PS3 sale for at least one or two years.

Now it's starting to look like developers are abandoning the PS3 as a platform.  The PS3 has a very poor installed base compared to their competition.  Releasing a third-party game as a PS3 exclusive seems like financial suicide at this point.
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« Reply #19 on: May 16, 2007, 07:40:00 PM »

Quote from: unbreakable on May 16, 2007, 06:08:05 PM

And as I frequently point out, the strong sales of the PS2 over the PS3 continue to demonstrate how Sony has not sold potential customers on their latest console.

When you double the launch price of your system over the last one we now see what happens.
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« Reply #20 on: May 16, 2007, 08:12:15 PM »

Sony IS making money...

theyz printin in thair base-mint.
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« Reply #21 on: May 16, 2007, 09:40:35 PM »

Quote from: Purge on May 16, 2007, 08:12:15 PM

Sony IS making money...

theyz printin in thair base-mint.

I believe you're thinking of Nintendo.

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« Reply #22 on: May 16, 2007, 09:58:34 PM »

hahaha great animation.
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« Reply #23 on: May 16, 2007, 10:20:09 PM »

Quote from: Jumangi on May 16, 2007, 07:40:00 PM

Quote from: unbreakable on May 16, 2007, 06:08:05 PM

And as I frequently point out, the strong sales of the PS2 over the PS3 continue to demonstrate how Sony has not sold potential customers on their latest console.

When you double the launch price of your system over the last one we now see what happens.

I'm not even certain if it's entirely that, although price is definitely one factor.

There is no denying that the PS3 is a powerful machine, but so was the Dreamcast when it was released.  The real problem is that Sony completely bungled selling the console to consumers.  IMO, their entire rationalle for why I would want one seemed to be (as explained by them) that
a) it was made by Sony, and
b) because the PS2 was successful.

Logically speaking, both points appear irrelevant to why one should want a PS3.  Emotionally speaking, they never even provided good reasons.  Rather than showing a bleeding fucking chess piece, what about showing some kick-ass game screenshots?  Compare this to how Nintendo launched: they had a few very nice first-party games which show off why we would want a Wii.  Sure, mom and dad are probably happy that the Wii costs less than $300, but had Sony successfully "captured the hearts and minds", many gamers (like us in the 30+ crowd) would have cringed at the price but still purchased the system.

Hell, looking at the damn screenshots for Eye of Judgement make me want a PS3.  Why the hell Sony didn't let the console sell itself is really a huge marketting failure on their part.  And now that so many 3rd party projects are being "delayed", perhaps the 3rd party devs are taking a "wait and see" approach to the PS3, or considering whether to support the XB360 or the Wii.
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