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PS3 Losses May Top $2 Billion

According to UK technology site vnunet.com, Sony are looking at a total loss of US$2 billion from the cost developing and manufacturing their PS3 hardware. As it currently stands, the company has already lost more than US$1.65 billion.

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TheMART3856d ago

OMG

"While this might sound like more doom and gloom for Sony's besotted next-gen system, it should be noted that Sony make significant profit from software, rather than hardware; any refinement of the manufacturing process will also stem these large losses. Of course, this also makes a price reduction in the near future less likely."

No they don't with an attach rate @ launch of 1.5 game per unit... My god. 2 Billion dollars and no income. Not on games, not in online service. Bad business model!!!

techie3855d ago

Dude...the attach rate of 1.5 will begin to change with the entrance of more games in March. I only buy one-two games with my console when I first buy it - in fact I know lots people who just bought the Wii with the Wii-sports included.

Secondly - PS2 software!? they make a hell of a lot out of that 100million installed fan base you know.

TheMART3855d ago

So dude. As you tried to make a smart remark, you're failed and proved my case.

The attach rates history:

PS2/Gamecube 1.9 game average per unit
XBOX 1 had 2.4 game average
XBOX 360 had a massive 4.5 game average per unit @ launch (at this point in time 5.3)

So if the 360 had 4 times the higher attach rate @ launch, it means a couple of things. The 360 had:

1. Better launch games (average review scores on 360 games are over 80%, PS3 games are what 65% or so)

2. 360 users have more to spend or just spend more

So actually you're saying out of all the games that are available for the PS3 (more then the 360 had @ launch) only one or two games are worth it. So waiting untill March? Waiting again? Wii is another story, Nintendo already makes profit only on the unit, not loosing 300 dollars a unit like Sony does...

The 100 million fanbase could be a 50% rebuy. And PS2 users don't buy so many games with the console too bad...

FirstknighT3856d ago

$2 BILLION??????????????? WOOOOOOOOOOOOOOW, that's insane! Talk about having a bad day!

bung tickler3856d ago

how do i appove a story its all grayed out... this has really been pissing me off.

bilal3856d ago

only contributors, moderators and administrators can approve a story...so u first have to become a contributor........

AuburnTiger3856d ago

This happens to Sony every time they release a new system. However, after the 1st year is where they make up they money that was lost. Sony has been stating for the longest that the ps3 is a long term investment and it is a trend that has proven correct for the previous 2 systems. Sometimes you have to take a step back to move forward.

TheMART3856d ago (Edited 3856d ago )

And sometimes one takes the wrong step.

If I'm right, MS lost 4 billion dollars in total over the XBOX 1 life span. That's 4 billion in like what, 5 years or so. At least they sold games on the thing and XBOX Live came up and brought some money.

The PS3 launch attach rate of games is 1.5 game per unit. Even the PS2 and the gamecube had a higher rate at 1.9 game per unit. The original XBOX had 2.4 games per unit @ launch. The 360 had 4.5 games per unit @ launch. At this point in time it has 5.3 games per unit attach rate. Plus XBOX Live makes money.

The PS3 ain't selling games and don't earn on the online service. Which is free, but also not a premium service like XBL. So tell me. Taking a step back, with the view of above, doesn't seem a good investment, does it

@ True Gamer just below this post

2 billion in what, 2 months time that the PS3 is here, compared to 4 billion in 4 to 5 years of the XBOX 1???

Nice comparing there! You know with every 1 million PS3's sold, Sony looses another 300 million dollars, right? If you want to save Sony, don't buy a PS3, you'll be only bringing them into further problems ;-)

But for real. If they are able to sell let's say 10 million in the coming 1,5 year, they lose another 3 billion freaking dollars. No it's not the same as MS.

MS has billions of dollars laying around at the bank, doing nothing. Sony is in red marks since years already. Sony don't have cash, they just got a multimillion dollar bank loan last year to finance the PS3. They are cutting on shipments of PSP's to get funding for the PS3. TV market share they just lost massive to Samsung, Philips and Panasonic...

I guess you don't see the worrying part of these amounts of money when you say 2 billion dollars is a small fee to establish BR as a format winner. Pushing the BR in the PS3 won't make the movies sell if those people are mostly into gaming. It just isn't. And what if the next gen format is streaming/downloading HD content? Like XBL Movie marketplace? I am enjoying HD movies right here, right now, without any drive that needs to spin...

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