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[Gamer] PS3 proving expensive for Sony

post #1 of 68
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It looks like the cost of the PlayStation 3 is causing Sony a few headaches, with production costs and price imbalances having cost Sony over USD 3 billion since the console’s introduction.

Sony’s fiscal 2008 report painted a rather costly picture for Sony’s investors, describing how selling the PS3 for less than it cost to manufacture resulted in Sony losing USD 2.16 billion (GBP 1.1 billion) during its 2007 fiscal year, and a further USD 1.16 billion (0.59 billion) during its fiscal 2008 year.

According to Sony, these costs stemmed from the high costs associated with “the development and introductory period of a new gaming platform,†and warned that these costs “may not be recovered.â€

The report went on to explain that developing and launching a new console is costly, and that Sony had had to invest heavily in elements such as semiconductors used in the PS3 as part of this process.

Further more, Sony also warned that these costs aren’t always recouped “[if a console fails] to achieve such favourable market penetration,†and that this may result in “a significant negative impact on Sony's profitability.â€

That said, it wasn’t all bad news. Sony predicted that it will sell 10 million PS3s during its current financial year (with production costs falling all the time).

Meanwhile, Sony president Howard Stringer told the company’s annual shareholder meeting that one of the senior management’s top priorities was “to restore profitability in our game businessâ€.
post #2 of 68
Seeing as how I now own a PS3, I had better not see Sony drop support for it due to money issues. I highly doubt this will happen, but the article paints a grim picture.
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post #3 of 68
How long did MS take to sell XBox 360 at cost? (Minus the RROD costs)
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post #4 of 68
Sony is doing fine.
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post #5 of 68
Quote:
Originally Posted by stargate125645 View Post
Seeing as how I now own a PS3, I had better not see Sony drop support for it due to money issues. I highly doubt this will happen, but the article paints a grim picture.
That wont happen. They are in it for the long run. The dev cost will go down enough soon.
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post #6 of 68
Quote:
Originally Posted by WhiteCrane View Post
Sony is doing fine.
Sony as a whole maybe. But on the console side if they aren't going to see a return from the PS3 then they aren't doing good at all.
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post #7 of 68
Quote:
Originally Posted by Somenoob View Post
Sony as a whole maybe. But on the console side if they aren't going to see a return from the PS3 then they aren't doing good at all.
They already aren't seeing a return. But they have invested too much money to quit on it. And, as anything, dev costs will go down soon enough for them to keep putting money into the PS3 making it better.
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post #8 of 68
For the casual gamers, ie. us, this really affects nothing.
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post #9 of 68
Quote:
Originally Posted by stargate125645 View Post
Seeing as how I now own a PS3, I had better not see Sony drop support for it due to money issues.
Won't happen, don't worry about that.

Quote:
Originally Posted by DuckieHo View Post
How long did MS take to sell XBox 360 at cost? (Minus the RROD costs)
I don't know that they are yet. I'm pretty sure that only the Wii actually turns a profit per console sold.
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post #10 of 68
awhile ago i heard that when Halo 3 came out it actually pushed Microsoft into the profit margin for the Xbox 360
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