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PS3 Losses May Top $2 Billion

According to UK technology site vnunet.com, Sony are looking at a total loss of US$2 billion from the cost developing and manufacturing their PS3 hardware. As it currently stands, the company has already lost more than US$1.65 billion.

TheMART7047d ago

OMG

"While this might sound like more doom and gloom for Sony's besotted next-gen system, it should be noted that Sony make significant profit from software, rather than hardware; any refinement of the manufacturing process will also stem these large losses. Of course, this also makes a price reduction in the near future less likely."

No they don't with an attach rate @ launch of 1.5 game per unit... My god. 2 Billion dollars and no income. Not on games, not in online service. Bad business model!!!

techie7047d ago

Dude...the attach rate of 1.5 will begin to change with the entrance of more games in March. I only buy one-two games with my console when I first buy it - in fact I know lots people who just bought the Wii with the Wii-sports included.

Secondly - PS2 software!? they make a hell of a lot out of that 100million installed fan base you know.

TheMART7047d ago

So dude. As you tried to make a smart remark, you're failed and proved my case.

The attach rates history:

PS2/Gamecube 1.9 game average per unit
XBOX 1 had 2.4 game average
XBOX 360 had a massive 4.5 game average per unit @ launch (at this point in time 5.3)

So if the 360 had 4 times the higher attach rate @ launch, it means a couple of things. The 360 had:

1. Better launch games (average review scores on 360 games are over 80%, PS3 games are what 65% or so)

2. 360 users have more to spend or just spend more

So actually you're saying out of all the games that are available for the PS3 (more then the 360 had @ launch) only one or two games are worth it. So waiting untill March? Waiting again? Wii is another story, Nintendo already makes profit only on the unit, not loosing 300 dollars a unit like Sony does...

The 100 million fanbase could be a 50% rebuy. And PS2 users don't buy so many games with the console too bad...

FirstknighT7047d ago

$2 BILLION??????????????? WOOOOOOOOOOOOOOW, that's insane! Talk about having a bad day!

bung tickler7047d ago

how do i appove a story its all grayed out... this has really been pissing me off.

bilal7047d ago

only contributors, moderators and administrators can approve a story...so u first have to become a contributor........

AuburnTiger7047d ago

This happens to Sony every time they release a new system. However, after the 1st year is where they make up they money that was lost. Sony has been stating for the longest that the ps3 is a long term investment and it is a trend that has proven correct for the previous 2 systems. Sometimes you have to take a step back to move forward.

TheMART7047d ago (Edited 7047d ago )

And sometimes one takes the wrong step.

If I'm right, MS lost 4 billion dollars in total over the XBOX 1 life span. That's 4 billion in like what, 5 years or so. At least they sold games on the thing and XBOX Live came up and brought some money.

The PS3 launch attach rate of games is 1.5 game per unit. Even the PS2 and the gamecube had a higher rate at 1.9 game per unit. The original XBOX had 2.4 games per unit @ launch. The 360 had 4.5 games per unit @ launch. At this point in time it has 5.3 games per unit attach rate. Plus XBOX Live makes money.

The PS3 ain't selling games and don't earn on the online service. Which is free, but also not a premium service like XBL. So tell me. Taking a step back, with the view of above, doesn't seem a good investment, does it

@ True Gamer just below this post

2 billion in what, 2 months time that the PS3 is here, compared to 4 billion in 4 to 5 years of the XBOX 1???

Nice comparing there! You know with every 1 million PS3's sold, Sony looses another 300 million dollars, right? If you want to save Sony, don't buy a PS3, you'll be only bringing them into further problems ;-)

But for real. If they are able to sell let's say 10 million in the coming 1,5 year, they lose another 3 billion freaking dollars. No it's not the same as MS.

MS has billions of dollars laying around at the bank, doing nothing. Sony is in red marks since years already. Sony don't have cash, they just got a multimillion dollar bank loan last year to finance the PS3. They are cutting on shipments of PSP's to get funding for the PS3. TV market share they just lost massive to Samsung, Philips and Panasonic...

I guess you don't see the worrying part of these amounts of money when you say 2 billion dollars is a small fee to establish BR as a format winner. Pushing the BR in the PS3 won't make the movies sell if those people are mostly into gaming. It just isn't. And what if the next gen format is streaming/downloading HD content? Like XBL Movie marketplace? I am enjoying HD movies right here, right now, without any drive that needs to spin...

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60°

Final Fantasy X 25th Anniversary Website Launches With New Nomura Artwork and Merchandise

Square Enix launches Final Fantasy X 25th anniversary site, revealing new Nomura art, books, music releases, and merchandise.

Read Full Story >>
twistedvoxel.com
-Foxtrot21d ago

Look I know VIII has its issues and all that but how on earth can the do big anniversary events with new artwork and merchandise for VII, IX and X yet VIII got sweet f*** all.

They could have given it something during its 25th anniversary yet all it got was a single Happy Anniversary post on their social media.

solideagle20d ago

they should know that we are OG fans of VIII as it sold truckload as well. not as much as VII or X. I personally didn't like IX but X and VI are my personal fav.

Shadow Hearts 2 covenant is another game I love. I hope one day someone can make remake, I would be delighted

Relientk7720d ago

Final Fantasy VIII is great and you are always the first to defend it in the comments

40°

15 Years Ago, Mortal Kombat (2011) Saved Gaming’s Biggest Fighting Franchise

A brutal reset, a smarter story, and a return to what made it great—Mortal Kombat (2011) revived the series.

Read Full Story >>
fortressofsolitude.co.za
italiangamer29d ago

"Gaming’s Biggest Fighting Franchise"

Press X to (seriously) doubt.

DarXyde27d ago

Underrated comment. I used to hate that game so much that any time my siblings asked me to play it, I just picked Hom and shut myself down mid-match.

Soy28d ago

And then MK1 killed it again.

DivineHand12527d ago (Edited 27d ago )

15 years went by so fast. I remember playing through the story mode at launch.

90°

PlayStation legend Shuhei Yoshida says Jim Ryan fired him because he didn't listen to him

Why did Sony push Shuhei Yoshida out of his role leading PlayStation's first-party games? He'd overseen some huge successes. Well, apparently, he didn't listen.

Read Full Story >>
eurogamer.net
Relientk7729d ago

Yeah I can see that for sure. Shuhei Yoshida should have been in charge not Jim Ryan.

Cacabunga29d ago

It should be free highway for him now.. but Sony are too stupid to see this, especially that moron Hulst

S2Killinit28d ago (Edited 28d ago )

Wtf why all that anger. PlayStation is dominating on every level. Besides I think there is a little more to hiring a CEO than just who is available. Its not like its a athlete your team wants to buy.

neutralgamer199228d ago

S2Killinit

live service failures, chasing trends, closing studios. yes dominating

Cacabunga28d ago

Sony is Dominating because competition is not existing. Compared to previous gens this is the poorest in terms of software offerings.

Last gen we got Uncharted 4 Lost Legacy and TLOU2 from ND alone.

This is so far a remasters gen, with no competition to lift up the quality

1nsomniac28d ago (Edited 28d ago )

..."PlayStation is dominating on every level"....

...Really???

PlayStation are soon heading into a new generation in the not to distant future. They currently have the worst customer satisfaction they've ever sustained as a company. The company is heading for a huge crash while at the same time they'll need to be planning how they are going to try and win back that favour and the build up to their new releases.

Yes financially they're winning but they're going to have to ride out this complete public corporate disaster. No one has faith in the company or the product anymore. They've damaged their public image so much this generation. Greed can kill anyone.

medman28d ago

Hulst is a disaster......

+ Show (2) more repliesLast reply 28d ago
blacktiger28d ago

He would've done the same thing and fire Jim Ryan and Shuhei would be the villain. Why?
Because Elite creates the narrative and distraction for gamers, users and citizens.

Outside_ofthe_Box29d ago

More confirmation that Jim Ryan is the culprit for what has happened to Sony. Hulst needs to go too. What sucks is that a lot of the good top heads at Sony are no longer there. I wish that guys that were forced out prematurely by Dumbo Jimbo like Shuhei and Layden came back.

robtion28d ago

Yep. Yoshida was responsible for bringing one of the best games of this generation to playstation (Stellar Blade). He is an actual gamer and is in touch with what gamers want (creative, fun games, not GaaS and agenda pushing). He also seems like a genuinely nice guy if you watch some interviews. Of course they got rid of him.

darthv7229d ago

Makes you wonder if MS even thought about hiring him after Phil and Sarah were leaving. He certainly couldn't make their situation any worse.

Agent7528d ago

Microflop. After Windows XP and Xbox 360, it all went floppy.

S2Killinit28d ago

Floppy 😆
No pun intended

badz14929d ago

Yoshida for President! Jim Ryan was and always be a hack! Sony should get Shu back

Lightning7729d ago

All the gamer/consumer lead heads are gone across PS and Xbox. shuhei gone phil's gone (questionable) but gone. The future of gaming is somewhat uncertain across the board.

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