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Xbox 360 and PS3 losses total $8 billion, ex-Sony employee paints grim future

Xbox 360 and PS3 have cost Microsoft and Sony a combined total of $8 billion, according to industry veteran Ben Cousins.

According to Cousins, Microsoft has spent some $2.996bn on Xbox 360 since it launched in 2005, while Sony has fared worse, spending $4.951 billion on PS3. Both figures are a loss, and you can see an overview of both company’s losses in Cousins’s financial table here.

Cousins, who has worked at a string of high-profile studios over the years – including Sony EA and Lionhead – has shed serious doubt on the future of the home console as we know it, citing Sony and Microsoft’s plan to sell each console at a loss as a reason for such poor fortune. It’s a poor strategy he says, as even with a combined total of 70+ million consoles sold, both companies are still losing money.

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iNathan1358d ago

MS made alot of money with the 360 in the last 3 years but they lost alot in the first years on the market.

Still what really matters is that right now is making money and isnt going away anytime soon.

Next Gen will lose money at first its normal, these things will be powerfull, technology is expensive and they cant sell Consoles for 1000$. But with time, games sales, Live etc... it will make money for them.

Riderz13371358d ago

What really hurt Microsoft is the RROD. I think this time around consumers might be watching Microsoft more carefully because of the disastrous launch of the 360 which was caused by the obsession to launch ahead of the PS3.

darthv721358d ago

disastrous? generally, disasters are tough to overcome but they managed to do quite well on their 2nd outing in the console market.

Hardly what i would consider "disastrous". Problems happen but many would rather concentrate on the nature of the problem more so than the efforts put in to resolve it.

Its a matter of selective recollection. only choosing to look at bits and pieces instead of objectively looking at both the bad and good to come from it.

Riderz13371358d ago (Edited 1358d ago )

@darthv72 Yeah it was disastrous because they had to keep replacing Xbox's which is why they lost a lot of money this gen from the Xbox. Also who knows what future disasters it could have on Microsoft. Maybe people won't feel safe buying the Xbox at launch...maybe they will. Hard to determine right now.

darthv721358d ago

but i'm not the kind of person to hold a grudge if something isnt working. UNLESS there is no effort to resolve the issue.

customer service is the main thing that keeps most consumers coming back. How a situation is taken care of can actually do more for the consumer confidence than the situation itself.

My PS2 laser died a year after having the system. It cost me $150 to get it fixed and yeah i was a bit miffed but not to the point where I would chastise sony out of spite.

im a gamer first and as such I fully know the costs and risks involved with this expensive hobby. Where as many shunned MS in the event of the RROD, they made good on trying to fix it at minimal to no cost to the consumer.

Some say they HAD to but they could have charged a minimal fee of $75 if they wanted to. Hell, nintendo charged me that when the sound chip went bad on my Wii after a year. Many will hate on MS because of who they are regardless of personal experiences.

Like i said before. Problems happen but how they are handled is often times more important to the consumer.

edonus1358d ago SpamShow
morkendo231357d ago

wiil consumers REALLY pay attention this time?? or only gamers will. will people buy xbox next after seeing signs of possible RROD again we dont know.

my crystal ball say:
lets wait and see.

violents1357d ago

@ darthv72

I agree it was disatrous. A 72% failure rate cant be called anything less in the eyes of the manufacturer.

My launch Ps3 60gig lasted 6 years before it finally ylod on me. I know people that went through 3 xboxes in a week. One only lasted for like 2 hours. I would definitly consider that a massive fail.

+ Show (3) more repliesLast reply 1357d ago
dedicatedtogamers1358d ago

And yet people still say "we need better graphics! And we need more voice acting!"

The rubber band is going to snap. Most developers can't keep up with the rising cost of AAA games, and next gen will be even worse.

Plus, we don't have a strong worldwide economy. The name of the game next gen will be "profitability". Who will be able to stay in the console race? It won't come down to number of studios. It won't come down to exclusives. Heck, it won't really come down to sales, either. It will come down to how profitable each game and each console is.

Christopher1358d ago

*** It’s a poor strategy he says, as even with a combined total of 70+ million consoles sold, both companies are still losing money.***

On hardware. All companies are raking in dough on software.

You don't sell hardware to make a profit on hardware. You sell hardware to sell software.

Why do we keep getting idiotic analysis of things that don't matter on their own?

doctorstrange1358d ago

Exactly. If these consoles were such catastrophic failures as he suggest, then they wouldn't make another gen of them.

Ace Killa 081358d ago

Because the source works within the mobile market and tries to convince the reader consoles are dying while mobile market is the next way to go.

1upgamer991357d ago

Microsoft sold more after the price cut, as did Sony. Therefore once the console began to turn profit-Price was cut and the profit was no longer there. Allot of people are starting to turn away from Live, seeing as how Sony and Nintendo are not charging the premium fee. Live is great but I am not going to pay to play BOPS2 online when I do it on Wii U free. I no longer support Microsoft Xbox. PS3, Wii U, PC for me. "making money isn't going away anytime soon" Well I am not sure about that seeing as the Xbox will be launching this year, and more than likely sold at a loss. How much first party support will 360 have after this year?

+ Show (1) more replyLast reply 1357d ago
iNathan1358d ago

Thats must be 30 years from now.

Consoles arent going anywhere son, stop dreaming.

Belking1358d ago

They will go away but not for a while. The time will come when you won't need to buy a console to get content and game makers won't need them to deliver their software. I would love to have them forever but I know it won't be.

miyamoto1358d ago (Edited 1358d ago )

Ouya, Game Stick, NVidia and Valve have just announced their new gaming consoles and this guy spew FUD doom and gloom.

So he is saying these guys are stupid and did not do their R&D?

I bet this guy is spewing these crap for his own vested interests.

awaiting a Sony, Nintendo and M$ response...

ElectricKaibutsu1358d ago

I actually think that was his point. Those "consoles" you mentioned are really just computers that you hook up to your TV. The Ouya and Steam Box won't have a proprietary operating system like the Big 3 do. Valve said you can even install Windows on their's. As it becomes more common to hook PCs up to TVs I could see consoles becoming more niche. I'm not happy about that, btw, but it makes sense.

miyamoto1358d ago (Edited 1358d ago )

Oh and its from Kcraptaku!

I should have known!
Nothing from that site is ever positive news worth reading.

darkride66 you should have known better not to bring that garbage here on N4G

Seriously

Anon19741358d ago

It was based off a guest column from Kotaku. Generally I have zero use for Kotaku or their articles, but this wasn't from one of their in-house hacks. Ben Cousins is a developer with some impressive credentials over the years from his time with Sony, Lionhead, EA, Dice and I feel his thoughts on the issue are valid and wildly shared.

We all know that MS/Sony sells consoles at a loss, but if software doesn't make up the difference as is suggested, why would they continue to do this? MS themselves stated way back that the next gen could look nothing like this gen due to costs, stating a low-cost, digital hub may be a better alternative.

Whether we agree or not, these are the discussions that are being had behind closed doors regarding next gen. When return on investment isn't there, you have to start looking at different strategies. This gen they weren't exactly racking it in except for Nintendo, and even then their strategy with the Wii imploded quickly and may not work again.

We've seen studies indicating that the young are turning away from traditional consoles in favor of mobile apps. There's evidence for his argument all around even if you don't agree with his ultimate conclusions. If you think it's garbage, why not pick a point he makes and explain why you don't agree?

Hicken1358d ago

He HAD credentials, but now he's firmly entrenched within the mobile market, and his articles more than show what he thinks.

He- apparently- has little faith in the console market, so it's no surprise. Check out the other articles he's had published at Kotaku... if you want to bother suffering through that.

His opinion is hardly unbiased, so that makes it a lot harder to take his words at face value.

EddieNX 1358d ago

Ouch , that's pathetic. Do they even know what they're doing ? The gamecube was arguably more successfull than the os3 and 360 BECAUSE Nintendo never LOST money on it , they MADE a PROFIT on every unit and game sold.

Sony lives in dreamland trying to show off like the big man with ''UBER TECH'' when they can't even afford to deal with ''UBER TECH'' they're just lying to themselves.

It's like a car salesman buying cars for 4K and selling them for 3K . You can't afford to sell those cars like that LOL.

This is Why the PS4 and maybe 720 is going to be a dissapointment to you drones because the MOST they can do is sell it at breaking even.

Sony need to make some Money or they will be the next Sega.

I know , the truth hurts.

Nintendo is currently by far the most successfull competitor in the Video Games sector.

pedroyamato1358d ago SpamShowReplies(2)
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