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gokuDX7

Sony has lost over $3 billion on the PS3

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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.....

http://videogames.yahoo.com/feature/sony-has-lost-over-3-billion-on-the-ps3/1223467


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Is it really that shocking?... Wasn't the original PS3 price nearer $1000? Hell X-Play's Ultimate Gaming PC costs a little over $3000. If the PS3 could compete with that they're even losing more money than I thought.

Just a reminder if you think that consoles' can play against PCs' in the same graphics & price fields, you are so dead wrong. PS3 is an example you can't have both amazing graphics, "low" price & make a profit.


"Cool. I always knew Atheists would someday save The World."

- Fantomex

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they could make allllllllll that $ back and then some with a spiffy new version of ff7 :P


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                                               Look at the flowers

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Unless each person buys multiple copies of Final Fantasy VII, I doubt Sony is going to make all that money back.


"Cool. I always knew Atheists would someday save The World."

- Fantomex

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In May, Sony recorded a profit of 3.53 billion for the year. They got it all back and then some. Its a big company. Its pretty regular in any business to "lose" money per say, as long as you still churn a decent profit as a whole, it really doesn't matter that much.

Sony aims to start profiting from each PS3 unit by August. Whether they do or not, is yet to be seen.


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Indeed it was, while they did ship 3 million copies so far, the final sales number isn't out. Its going to take more games like that to boost up the PS3's desirability.


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The net loss at the division was narrowed to 124.5 billion yen (around $1.2 billion). This was helped by a decrease in the cost of PS3 production and an increase in the sale of software. Sony sold 57.9 million units of PS3 software.

http://www.gamedaily.com/articles/news/sony-sells-over-9-million-ps3s-in-fiscal-08-game-division-sales-rise-26-/?biz=1

So their 1.2 in the hole still and we will probably see that number increase more if they don't put out more exclusive games or have to produce more PS3's (which they will have to do at some point). Each system they make they lose $500 or more.

It's gonna take them some time to catch up. I still blame their marketing team for messing everything up at the start of the next gen wars. They should have been focusing less on pitching the PS3 as a Blue ray player and more time pushing game developers to make games. Promoting it as a Blue-Ray player should have been happening right now in staid of before. The Price cut was great for the consumes but bad for Sony. They where already losing money at the start and to cut it more only caused them to double or even triple their loss. I guess most of these errors could also be attributed to Sony's conceited attitude at the very start thinking they would have no problems selling PS3 like hotcakes.

I give Sony a year or two at max before the PS3 starts to show up in everyones house hold (unless a cheaper blu-ray player comes out). The reason for this is because movie company's, by then, will start making Blu-ray only movies to try and push people away from DVDs. But in 2 years Microsoft and Nintendo will have probably already leaked news about their new systems. So theres no telling how things will pan out.


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