Sanzee

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Analysis: How Much $$$ Sony Lost in November

This Blog is not intended to lash out against the PlayStation 3 nor against their fanbase. I am only analyzing how much money the PS3 cost Sony in the month of November.

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How much debt did Sony Computer Entertainment of America accumulate in the month of November?

It cost $800 to manufacture each PlayStation 3 in 2006. Now It's dropped to about five or six hundred dollars per console. The PS3's cheapest bundle is $400.00

Losing even one hundred dollars per console must have some serious effects. If the PS3 sold 388,000 consoles in November, and each sale costs them 100 dollars, this means they essentially lost...

388,000
x  100
-----------
$38,800,000

Holy Sh*t

orakga6277d ago

Always involved losing money at the front end.
If memory serves me well, the PS1 was underpriced for about 30 months before they started making money from it.

That said, I believe Sony has already stated that they are BREAKING EVEN with each PS3 sold now. (read: they are not losing money on it anymore)

But that is exactly the problem: They SHOULD be willing to continue losing those monies in order to penetrate the mainstream. THEN capitalize on their install base. Sony's failure is really due to shortsighted business planning, and the lack of understanding of the console videogaming business.

hfaze6276d ago

"and the lack of understanding of the console videogaming business."

Really? PS1 and PS2 say hello...

When you take a look at the kind of hit that Sony is taking across the board (all of their business units), it makes sense why they are trying to get as much out of this price point as possible.

Does keeping the price where it is help with sales? Nope... But if it is helping Sony corporate stay afloat, then you can't blame them for trying to get one more holiday season at this price point.

Now if they still haven't done anything about the price by say July of next year, then that would be a "lack of understanding of the console videogaming business."

No worries... the 45nm Cell/65nm RSX PS3's are coming next year, which means lower production costs (and much more of a chance to see a price drop).

orakga6276d ago

@ hfaze:

"Really? PS1 and PS2 say hello... "

LOL... you don't even realize that you are agreeing with me.

MUNKYPOO6277d ago

also they are making money with the games they are producing. a lot more this year than last.

RelloC_ReBorn6277d ago (Edited 6277d ago )

I am So Tired of seeing this crap...
Back to Why SONYS FAILING or GOing under.. and then theres the X-box is doomed ... im SO sick of seeing this Crap.
BOTH SYSTEMS WILL BE HERE THE ENTIRE GENERATION!!!!!

Any Moron can see that. On top of that.. i read months ago Sony actuly making money from there systems. And even if they were Loosing a lil money. And id like to know for real how much fixing the 360s cost M$

But it dosnt matter... because stupid peopl elike this are now saying sony selling 388k ps3's is a bad thing lol... its just to much.
It seems no matter whats going on People will still find ways to say either company is Doomed for ever..

Even if they were loosing money on ps3... Think about the last time u watched a VHS movie? now i remember going to blockbuster back when they first got DvD's in... it took for ever for that to pick up and push VhS out the door. I think its only a matter of time before
blu ray dose the same thing... Now were this guy thinks Playstations loosing them money... They then make money on every blu ray ever SOLD
ALL OF THEM.. not sony movies.. EVERY MOVIE EVER MADE!
think of 10 years of that! before Supper MEGA HD dvds come or sumtin

i know dev costs make new things expensive... But some how there still selling Playstation 2's if the more u make of something the cheaper it gets.. then they should be making ps2's for damn near no Cost.

kraden6277d ago

wtf are you a ps3 producer? and you work inside sony ? that u know how much costs? u could get fired dude

Nathan Drake6277d ago

LittleBigPlanet managed to sell 1 million copies to date.

$60.00 per copy multiplied by 1,000,000=$60,000,000.

So don't be concerned about how much they lost :)

NineteenSeventyNine6277d ago

So, you're cutting out the costs of producing the game, shipping it and promotion? They've made far less off of LBP than 60 mil.

Nintendo is really the only one actually making money these days.

Jack Meahoffer6276d ago

Yep every cent someone pays for game goes straight to profit because games are created by magic. Idiot

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