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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.

<hr></hr>

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

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orakga6360d 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.

hfaze6359d 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).

orakga6359d ago

@ hfaze:

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

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

MUNKYPOO6360d ago

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

RelloC_ReBorn6360d ago (Edited 6360d 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.

kraden6360d ago

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

Nathan Drake6360d 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 :)

NineteenSeventyNine6360d 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 Meahoffer6359d ago

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

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70°

Microsoft Gaming Revenue Drops 7% Year-on-Year, Content and Services Down 5%, Xbox Hardware Down 33%

Microsoft announced its financial results for Q3 of fiscal year 2026, including an update on its gaming Xbox business and more.

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simulationdaily.com
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Jin_Sakai17d ago (Edited 17d ago )

Not looking good. Hopefully Asha Sharma is able to turn Phil’s disaster around.

dveio16d ago

To me it's still quite remarkable how they can cash-in 5.3bn in revenue in a single quarter, since their hardware is basically dead.

Jingsing16d ago

The stock mark is what makes Microsoft remarkable, They have convinced every institutional and retail investor to just keep piling money into them. Like many big tech giants they are just a big growing pyramid scheme. As long as people keep dropping money into ETF's that cover the market Microsoft will always be liquid. At the same time it is completely stifling innovation and competition. People need to start being more discreet in how they invest their money as it's killing the system.

Tanktopmaster9216d ago

Once they re-evaluate exclusive all will be fine….

S2Killinit16d ago

Riiiiight because people will just flock back to them for one or two games per year.

Jingsing16d ago

15+ years of bad performance is what they call irreparable in business. It is time for them to sell off the assets and get out of entertainment.

Tanktopmaster9216d ago

These declines are on the back of extra revenue received from releasing games like Forza horizon 5 on PlayStation. So I’m being sarcastic here when I said they should go back to exclusives. Killing off a revenue stream from Ps5 sales will only make things worse

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40°

Games Done Quick is coming to Europe for the first time with 3 days of Gamescom speedruns

The charity event will be streamed live from Gamescom in August.

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50°

Report: Injustice 3 in Development at NetherRealm Studios

Thanks to the slip-up of an artist working on the title, we now have more evidence that a new Injustice game is in the works.

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