PS3 cost reduction "progressed according to plan"

In their annual report for 2009, Sony stated that reductions on Playstation 3 hardware costs have "progressed according to plan."

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jack who3308d ago

how much was posted that they lost today again?

lloyd_wonder3308d ago

Lol. Noob thinks Sony's whole business is only making PlayStations.

jack who3308d ago

looks like a noob doesnt know the meaning of a "net loss"

Obama3308d ago

How much stock you have in MS again?

jack who3308d ago

who me :D i own 10 or um 0.ooooooooooooooooooooooooo1%?

Raoh3308d ago

Revenue from the Microsoft’s online operation dropped from $837 million in last year’s calendar second quarter to $731 million this year. The loss from the division was even more troubling. It went from $485 million last year to $732 million in the quarter of this year. Microsoft’s “appendix”, its devices business, which is dominated by its Xbox products, lost $130 million. Revenue at the division dropped from $1.59 billion to $1.19 billion, which raises the question, once again, of why Microsoft is in the device business at all.


Online services were brutalized, with the operating loss widening to $730 million. That's up from $575 million last quarter, and a 50 percent increase of the loss seen last year. Ads are way down, with the possible exception of Microsoft's own campaign for Bing, and the impact was obvious. Entertainment was down by a quarter in revenue terms, and lost about $130 million, about $100 million worse than last quarter. Console sales were up, but discounts and promotions meant that those Xboxes earned less for Microsoft. In news that will shock no one, the Zune continued to struggle.

gambare3308d ago (Edited 3308d ago )

It doesn't matter how much both companies lost, it means less jobs for the workers of both companies, both things affects the wallets of the people who works there, and both companies were hit hard, sony were hit in the gaming division (that's why they are working in reducing the cost of production of the console) and microsoft lost on every field except gaming.

In fact, microsoft were hit harder than sony, because sony can fix their problem by reducing the cost of production of the ps3, but microsoft is hanging on their gaming revenue, but in any case is bad, I have friends working on the design office in california.... I hope things go well for sony and microsoft

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Nitrowolf23308d ago

so its true they did shrink the chip.
this could mean possible price cut or/and ps3 slim

umair_s513308d ago

while I am not ruling out the possibility, a price cut is unlikely as profitability comes first considering their current economic position. I think Slim is more probable.

jmare3308d ago

Actually, if the slim does come out a price cut is likely as: 1. It helps build and sustain the momentum created by the new hardware; and 2. Hardware gets smaller because the parts are smaller and the number of parts is reduced. Smaller parts take less raw resources to manufacture and are therefore cheaper. Fewer parts and cheaper remaining parts means the cost to manufacture the PS3 comes down and in an interest to boost sales, Sony will lower the price without adversely affecting profitability because it will be cheaper to produce the slim, if it exists.

OnlyOnN4G3308d ago

I reckon there will be a price cut/Slim, I dont see how else they'd meet their target of 13 million units sold by fiscal year end

Chris_GTR13308d ago

why do you guys keep saying its probably a ps3 slim? weve already seen the videos and leaked pictures, it IS a ps3 slim. no need to try act like it might not be.

raztad3308d ago (Edited 3308d ago ) at it again:

"Hopefully, the cost reductions can turn around the bleeding Playstation 3 business for the sake of Sony and the fans of the system." <--Classic.

That quote seems to come from a 360 fan. It's almost like: Sony is dooooomed, will the cpu shrink save the PS3? LOL. Those guys at forgot Sony is more than just "the bleeding" PS3 business, and both PS3 and xbox360 are neck to neck WW.

Good to see those technical improvements, less parts/less size means less heat production/less energy consumption, translating in
a quieter and fresher console. Most probably those shrunk parts will help Sony to reach that 13 million consoles shipped by the end of the fiscal year.


Sorry for the confusion, I just meant "neck to neck" comparing last quarter shipped figures. xbox=1.2 and ps3=1.1 (millions)

mrblacknut3308d ago

7 mil units ahead of the 360 is not neck and neck. Oh if you are qouting the 100,000 difference in SHIPPED numbers yeah okay I guess that is somthing to hang onto. Or the difference that one company made profit and the other didn't. Yeah that is neck and neck. Nice spin.

Erotic Sheep3308d ago

I'm pretty sure Raz means neck on neck if you dont consider the first year the 360 launched without competition. If you look at the total sales since the PS3 launched, then yes, Xbox 360 and PS3 are neck on neck. I doubt Microsoft is gaining much profit either when they lost a lot on RRoD cases.

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FlipMode3308d ago

people on this site are starting to argue their company's profits and net losses like they are invested or care instead of just games

its like
"my console makers are profiting and your not ha ha ha you lose!"

wth is going on

Nitrowolf23308d ago

its not even funny to read there comments.
from both sides " hahaha your company losing money"
like you said its not like they invested in either company (well not many). i think article like those will just start a flame bait and give a side something to use against the other. that pretty sad considering it doesn't have to do with gameing (well it does sort of but not enough)

Sibs3308d ago (Edited 3308d ago )

I guess their minds are too weak to think qualitatively. Numbers are easy to add and subtract, making it easier for them to grasp. Have you even seen their grammar? It's enough to make the English language cry. Just looking at some of their posts can show you that their IQs are way below 100.

cmrbe3308d ago

Your kind is not welcome here in the fun zone.

Suggest you move your ass to

<---- that zone.

Gue13308d ago (Edited 3308d ago )

When you don't have many games you just have to resort to argue about sales. =D

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