Login

Sony Lost Over $3 Billion To PS3 Cost

javie

16 year(s) ago

[quote]Pricing the PlayStation 3 below its production cost caused Sony to lose $2.16 billion in 2007 and $1.16 billion in 2008, the company revealed today. Sony's fiscal 2008 annual report delineated potential risk factors to its investors, outlining that "the large-scale investment required during the development and introductory period of a new gaming platform may not be fully recovered." The loss figures were provided as an example of the "significant negative impact" introducing a new platform can cause at first. "In the past, large-scale investment relating to capital expenditures and research and development for the manufacture of key components, including semiconductors supplied for [PlayStation 3] was also recorded within the Electronics segment," the company said. In order to stay competitive, said Sony, it had to invest large amounts of money in research and development to introduce the PlayStation 3 into the market, and these sorts of expenditures don't always get recouped, especially if a platform "fail[s] to achieve such favorable market penetration... resulting in a significant negative impact on Sony's profitability." Even if it can recoup its investment, Sony said, it's still possible to have lost large amounts of money on the platform's introductory period, and even a successful PS3 might take a while to replace what it cost to produce. These possible outcomes are currently a risk for the company, Sony said.[/quote] http://kotaku.com/5018899/sony-lost-331-billion-to-ps3-cost-pricing-imbalance Man, I kinda feel sorry for Sony so far.

BrotherReed

16 year(s) ago

Not me. Sony can kiss my you know what.

javie

16 year(s) ago

Well I'm a huge Nintendo freak, but just look at what Sony did to themselves. I bet you anything that Sony will just bust out a huge fundraising concert to save their backs. :laugh: Yeah, its going to be like those concerts that those environment movements do. But without the environment people. I mean if it weren't for Sony putting in Blu-Ray players in their system, they probably wouldn't be in this situation today. Shoot, Nintendo didn't need all of that stuff at all. They decided not to put in a DVD player in it because everyone already owns a DVD player. They didn't put in a MP3 player, because a majority of people are using iPods today. And it only cost them less than $5 to make a single Wii-mote.

serfofChrist92

16 year(s) ago

[b]BrotherReed wrote:[/b] [quote]Not me. Sony can kiss my you know what.[/quote] 1+ rating for you. ;) I read the thread title and thought "yess!" No me gusta Sony.

javie

16 year(s) ago

The PS3 to me is just nothing more but the biggest mistake that Sony has ever made. I mean first they thought about using motion sensor in their controllers, but people wanted vibration. The only reason why there was no vibration in the controllers to begin with is because there was no room in their controllers for vibrations. So they had to get rid of the motion sensors and put back the vibration in their controllers. I thought of that as a huge waste of money. The other thing about the PS3 that was becoming very disappointing was the list of games they had. I mean I looked at the graphics to the games they showed when they first announced the system and they were unbelievable! I mean the games were like something that you can't stop drolling on. But now you can play a majority of their third-party games on the 360. Why on the 360? Because their system cost less than the PS3. I mean Sony drops the price of their PS3 to $400, so now their are rumors today that Toys-R-Us is trying to lower the price of the 360 by less than $200. The Wii is now the best selling system because they gave us something new and fun with their remote. Its original and a classic way of playing games. Sony hasn't brought anything new to their system. I mean they wouldn't have lost this much if they didn't put in so much expensive hardware in it. I mean why did they put in a Blu=Ray player if they knew it would cost them a heavy price to all of their systems? I mean if you look up a chart of how many PS3's Sony has sold, you can see that the PSP's has sold way more than the PS3. Its a big downfall for Sony. And non of this would have happen to begin with if it weren't for its expensive hardware that they have. I mean I have a feeling that it would become worse later on.

javie

16 year(s) ago

Oh what am I saying, I had no care for the Playstation to begin with anyway. I mean FFVII was way too long for me, God of War was not just a short game, but it had a very perverted mini game in it. It just never gave me any interest to begin with.

serfofChrist92

16 year(s) ago

[b]javie wrote:[/b] [quote]The PS3 to me is just nothing more but the biggest mistake that Sony has ever made. I mean first they thought about using motion sensor in their controllers, but people wanted vibration. The only reason why there was no vibration in the controllers to begin with is because there was no room in their controllers for vibrations. So they had to get rid of the motion sensors and put back the vibration in their controllers. I thought of that as a huge waste of money.[/quote] Not to mention the whole motion sensor was a complete copy off of the Wii. Nintendo had announced it, so then Sony rushed to add it to their own system.

Lucario

16 year(s) ago

Well, it's about time. I say Sony did good before, but now I think Nintendo is taking over, especially with Brawl in the mix ;) And now, Sony is losing money. Probaly due to the Wii coming out, not the cost of the PS3 :3

Gamester4

16 year(s) ago

There was room in the controllers to put in the rumble according to the people who make to controllers. Also the Dual Shock 3 will still have sixaxis functionality.

XS (Extra Small) SM (Small) MD (Medium) LG (Large)