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Sony's game division losses double
- Thread starter Queasy
- Start date
Modeps
Lifer
With the lack of any real AAA titles this holiday for them as well, I can't see it getting much better. Ratchet and Clank seems to be the only big one. I thought for sure GTA4 would bring them back, even though its not an exclusive anymore but the delay of it for both systems may hurt the PS3 more than the 360.
Of course it's good for the industry. Consumers are voting with their wallets and Sony is losing. Nothing wrong with that. If there was one main video game system, things would be simpler for everyone. It's no different from Microsoft dominating the operating system sphere or your local utility company dominating your region. Sometimes more competition isn't good between environment but better within.
blurredvision
Lifer
I'm not stunned. They've made some very poor decisions with their launch of the PS3, some of which were expected, some of which were hindsight. They didn't give any consideration to the console market in terms of price and competition, and they are only starting to realize that with their more aggressive pricing. They are only now getting their shit together a year after launch, and luckily for them, I don't think it's too late.
However, in the long term, I think they'll be alright. Including blu-ray in the PS3 could be their downfall in current financial status but a boon to their business for future considerations.
Being late to the game AND having the most expensive/complicated hardware out there I'm not surprised they are so far in the red. They better hope the PS3 has a 10 year life span, as it looks like it might take them that long to be profitable.
I've not seen any numbers, but isn't Microsoft always losing money on the Xbox as well?
I've not seen any numbers, but isn't Microsoft always losing money on the Xbox as well?
Oyeve
Lifer
Yeah, but MS has enough cash that they could replace every single 360 and still make an annual overall profit. But, it does suck that Sony cant get their crap together. I was so excited when the PS3 was first announce but I am glad I did not get one. Too much money and not one game I would play. Having a blast with the 360 on the otherhand.
herkulease
Diamond Member
Yes Microsoft has always lost money on the Xbox venture. however unlike Microsoft, Sony expected the PS3 to sell like hotcakes and do what the ps2 did and more with blu-ray. Microsoft only hopes the 2nd time around would be able to get them a profit.
Windows makes so much money each year that few hundred million in losses in the home and entertainment isn't a big hit. That whole division hasn't made any profit since it first started.
You can say the same with Sony and their television and movie business but the movie business is up and down every year, and television market very competitive. Its gonna be a long time before anyone challenges Windows dominance.
RagingBITCH
Lifer
I don't think he's arguing that simpler is better, but simple fact is, Sony fvcked up this console round. Consumers voted and Sony is losing, big time. They're not going anywhere and you can bet there'll be a PS4.
Aikouka
Lifer
MS probably would've had low losses this time around or made a profit... but the whole 1.2 billion set aside for RRoD repairs is what killed their profits.
Somewhat related... I was in Gamestop yesterday after I bought Ratchet and Clank at Gamestop (there are two in the mall, the one used to be EB Games). This group of girls were in there and they ended up buying two PS3s. I was curious to ask them what made them buy one (not trying to disenchant them from the PS3, but out of curiosity) or in this case, two. But then I realized that would involve me talking to someone of the female species so I just quietly huddled looking at some random video game instead 😛.
Somewhat related... I was in Gamestop yesterday after I bought Ratchet and Clank at Gamestop (there are two in the mall, the one used to be EB Games). This group of girls were in there and they ended up buying two PS3s. I was curious to ask them what made them buy one (not trying to disenchant them from the PS3, but out of curiosity) or in this case, two. But then I realized that would involve me talking to someone of the female species so I just quietly huddled looking at some random video game instead 😛.
mugs
Lifer
Nintendo had no real competition in handheld gaming during the GBA's life. Cell phone games? Meh. They still put out the innovative Nintendo DS. I have no doubt there would still be innovation and advancement in console gaming with only two competitors, because
1. There were only two real competitors for years (Nintendo/Atari, Nintendo/Sega, Nintendo/Sony)
2. Console manufacturers are motivated by the need to sell GAMES, not just systems. You have to make a good system to sell the games.
3. If all else fails, there is competition from the PC.
The upside to fewer competitors is you don't have to buy as many consoles to buy all of the best games.
Just counting the consoles and accessories and not including any games, I'm up to about $1000 between my Wii and Xbox 360. That's for systems, controllers, batteries, etc. I'd rather not lay out another ~$500 for the bare-bones model + accessories to get the PS3 just to play PS3 exclusives. But I will... eventually.
tatteredpotato
Diamond Member
The bad news is Playstation is bleeding money, but the good news is that Sony has managed to get it's other businesses in check enough that they can stomach this loss for now. Microsoft has lost a ton of money on the Xbox, but they are shooting for profitablity in FY08. If they can bring the Xbox division in the Black this year they won't be in too terrible of a position.
Still, Sony's last two quarters of losses, although massive, are just about what MS just had to spend on defective 360s.
Sony got themselves into a pickle. They launched late, expensive, and lacking in compelling reasons to steal business from the competition. Profits are made late in the consoles cycle, but they need to get enough systems into the market so that developers don't give up on the PS3. So now if they want any chance of making it they need to sell their console at a much lower price point than they would like. All the juggling Sony has been doing with prices and configurations seems like a desperate attempt to appeal to broader market than PS Loyalist and HT Enthusiasts looking for a nice BR Player.
I can see Sony trying to get to the next gen much earlier than usual if they can't improve things on the PS3 front, because after all, losses are the reason MS jumped ship on the Xbox as soon as they did.
Still, Sony's last two quarters of losses, although massive, are just about what MS just had to spend on defective 360s.
Sony got themselves into a pickle. They launched late, expensive, and lacking in compelling reasons to steal business from the competition. Profits are made late in the consoles cycle, but they need to get enough systems into the market so that developers don't give up on the PS3. So now if they want any chance of making it they need to sell their console at a much lower price point than they would like. All the juggling Sony has been doing with prices and configurations seems like a desperate attempt to appeal to broader market than PS Loyalist and HT Enthusiasts looking for a nice BR Player.
I can see Sony trying to get to the next gen much earlier than usual if they can't improve things on the PS3 front, because after all, losses are the reason MS jumped ship on the Xbox as soon as they did.
It has been an ugly year for Sony for sure. Not enough quality games in addition to consumer unfriendly prices didn't help PS3's cause. However, a poor year for gaming division was expected.
If we are having the same conversation next year, then I would be worried. Additional price cuts and great games should help the console considerably.
If we are having the same conversation next year, then I would be worried. Additional price cuts and great games should help the console considerably.
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