Not really surprising when they have to sell it for £300+
I thought most consoles made losses and re-made it on the games they released? Wasn't that the downfall of SEGA?
Anyway - It may take around 5 years for them to make any profit on the PS3, but the more franchise games (like they say, MGS4 and GTA4) they release, the more monies they'll make!
I know, Once (If they ever do) make a bit of a price slash they will sell alot more consoles.... I would even buy one. I was reading before that they made the parts smaller and more cost effective a few months back and as the pasrts are smaller could lead to PS3 Slim and also price cuts... I doubt it will be in 2008 though
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A drop in the bucket for Sony. Some things in life are about prestige rather than profit. The Playstation name alone gives their electronics brand a boost. Sometimes you can sell other products better because you put out a reliable product in another market.
It’s true the Wii appears to be a bit odd in making a profit for Nintendo from the hardware from the point of release. I wouldn’t imagine Nintendo’s research budget was anything like the scale of Sony’s either, but against that the Cell will doubtless be cropping up in all sorts of high end consumer gadgetry which will be making a profit. As others have said, the PS3 is a high profile way of raising awareness of the Sony brand as well as the Cell, though as a division the console side used to prop up the rest of the business (see here for an illustration of the impact slowing sales had) so Sony isn’t really capable of medium term losses of this nature.
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I think part of those losses is the fact that Sony's prices are often higher than some of its other counterparts due to their name and quality. In a time of economic downturn, the priciest items often find the least market. I'd imagine we'll have to start seeing declining prices across the board soon. Otherwise, that trend is sure to keep up.
Its happened before, it'l happen again, nothing new.
They'l recoup the costs when it eases into its prime, they've built a solid machine, things can only get better, especially with the price drop of HDTV's now *cough* bluray *cough*
Quite a shocker really. Especially the bit about "'strategic pricing' that sees the console sold under its production costs." No wonder......
Cant see why it is good news for Microsoft fanboys!! Maybe for Nintendo fans but as far as Microsoft goes they have made plenty of losses themselves (they lost 1 billion dollars only on the extension of guarantees alone).
As far as Sony goes they will definately make some profit soon. Dont forget PS3 wasnt just about the gaming market. It was also for pushing the Blu Ray toward victory. Which it did. So think about the profits Sony has/will be making on that.
PS3 Loses $3.3bn Since Launch
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