Sony boss Howard Stringer says the company will need to find profits from non-games related sectors, to offset the costs of PlayStation 3, now set to lose the firm $1.7 billion this year.
In a way to me its nice to know they spent so much money on a console. Just hope it doesnt bankrupt them in the process. In the long run they will be fine. The next 6 - 10 months are huge for Sony. Hope they dont have to many hardware problems because the media would eat that up and the Ps3 would be done (even if the 360 has way more) bad ps3 news spreads way faster than bad 360 news. Took them what 6 months to admit there was a problem with the 360's, oh its only 3 - 5 %, yea sure!
M$ has been doing this since the launch of the original XBox. No big suprise to me. Sony has borrowed a lot of money to put towards PS3, Blu-Ray, and Cell development. When you have high production costs coupled with the fact that the company loses money on each PS3 sold, it doesn't take a genious to figure out what needs to happen. This is why the software sales are so important! Oh and not to mention a HUGE battery recall may not help either!
I love how you guys think this is good news. This means less money spent on the on-line network, sony branded peripheals, First party games, and any planned extra goodies. Now how great does the news sound?
No wonder you have 3 bubbles! I am in no way defending Sony or the 360 for that matter. I own a 360 and I am very very pleased with it! Not to mention that I have no immediate intentions of purchasing a PS3 at this point in time. All I was implying was that this is what M$ has been doing all along with the XBox. Now Sony has to do it! Stop being such a fanboy and maybe you would have more bubbles!
MS's in a different boat. They have the cash for their losses. I think the point of the artical is Sony might be in a little trouble comming up with the cash to off set the losses. It's not the same thing Sony's trying to keep it's head above water while MS knows it will loss cash to take the gaming industry and isn't really worried about cash as they are tying to take the lead. It's a wonder why you have as many bubbles as you do with that pro logic. J/K!.
Yes it is the same thing. Sony didn't have to rely on other divisions of the company to make up for the losses in their gaming division. M$ has had to have other divisions cover their losses since the beginning of the XBox. It is very much the same thing. Only now, Sony has to hope that its other divisions can cover the loss. M$ already knew that the losses would be covered. That is where the difference is. But the process is still very much the same! No matter how you would like to spin it!
The problem, as power of green noted, is that's a lot of money to be losing. And if there's an unforeseen problem with the production, or manufacturing, that's a loss they're not going to be able to afford.
back in the dreamcast days,ps1 and ps2,companies lose a lot of money launching a system.i remember it around 500 million or more.then you make money on software.nintendo is the only company that wants to make money on the hardware and the software.and being that wii is just a gamecube with extra features and ram,they're going to make more money again.same with ds,gameboy advance,gamecube.nintendo makes money on hardware and software.sony,being a hardware company,thinks producing more units and shrinking the tech/combining it will make it cheaper.and you make more money.it's partly true but i think nintendo's way is better. here,read this and understand http://technology.guardian....
Spend money to make money. That's a hell of a lot though. R&D + $200 per console...yeah 1.7 Billion sounds about right. o_0
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