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[SONY] Sony has lost over $3 billion on the PS3

post #1 of 26
Thread Starter 
Quote:
Think you paid too much for your Playstation 3? Don't expect any sympathy from Sony.

In the company's fiscal 2008 annual report, Sony revealed that they've now lost roughly $3.3 billion (that's billion with a B) on the Playstation 3 since its launch. That breaks down to $2.16 billion in 2007, followed by a notably smaller but equally daunting $1.16 billion loss in 2008.

The reason? Pricing the console below its production cost. That's right - that hefty $599 you paid for the PS3 back when it first launched was significantly cheaper than the cost of producing it in the first place, and while the retail price has come down some, the losses keep piling up.

Investors have reason to sweat. In a statement, Sony claimed "the large-scale investment required during the development and introductory period of a new gaming platform may not be fully recovered." They went on to note that they've invested a great deal of money into R&D for the console, a sum they might not be able to recoup if the PS3 "fails to achieve such favorable market penetration."

Sony fanboys should take heart, however. Losing money on hardware is relatively common in the video game biz, as companies routinely lower prices to sell more units and thus stimulate software sales. Sony's game division saw a 26% sales spike last quarter, a trend they expect will continue on the strength of strong exclusives like the recently released Metal Gear Solid 4 and the upcoming sequel Resistance 2.

But will it be enough?
Citation: http://videogames.yahoo.com/feature/...he-ps3/1223467
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post #2 of 26
LOL.

Can't believe this would happen. I thought MGS4 was to boost PS3 sales..
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post #3 of 26
Quote:
Originally Posted by FieryCoD View Post
LOL.

Can't believe this would happen. I thought MGS4 was to boost PS3 sales..
It did boost PS3 sales, but it just came out. In fact the PS3 is outselling even the Wii in Japan as of now because of MGS.

And this is a repost.

http://www.overclock.net/hardware-ne...sive-sony.html
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post #4 of 26
Thread Starter 
Quote:
Originally Posted by ElMikeTheMike View Post
It did boost PS3 sales, but it just came out. In fact the PS3 is outselling even the Wii in Japan as of now because of MGS.

And this is a repost.

http://www.overclock.net/hardware-ne...sive-sony.html
woops
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post #5 of 26
wow
post #6 of 26
Quote:
Originally Posted by FieryCoD View Post
LOL.

Can't believe this would happen. I thought MGS4 was to boost PS3 sales..
I am sorry but I have to point this out. Did you even read the article? It states they lose money on every PS3 sold due to the pricing/production cost ratio. So yea sales went up. But so did their losses because they make $0 off of every PS3 sold.
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post #7 of 26
Quote:
Originally Posted by Grafixs View Post
I am sorry but I have to point this out. Did you even read the article? It states they lose money on every PS3 sold due to the pricing/production cost ratio. So yea sales went up. But so did their losses because they make $0 off of every PS3 sold.
Which may have changed already for all we know.
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post #8 of 26
Quote:
Originally Posted by ElMikeTheMike View Post
It did boost PS3 sales, but it just came out. In fact the PS3 is outselling even the Wii in Japan as of now because of MGS.

And this is a repost.

http://www.overclock.net/hardware-ne...sive-sony.html
That is no way to help the hole they are in. With the PS2 they quite a few consoles, regardless if what games came out. PS3 needs more quality games and less games you can find on your PC. Hell, isn't MGS coming out on the 360 soon? Sony "ain't what they used to be."
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post #9 of 26
Quote:
Originally Posted by OmegaNemesis28 View Post
Which may have changed already for all we know.
I am fairly certain, not to argue with you. That with the Blu-ray drive and the cell processor. They still should be loosing money. But hey, that's just a estimate for right now.
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post #10 of 26
Consoles are boring, ever since I discovered how fun a keyboard and mouse (working simultaneously) can be.
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