In their annual report for 2009, Sony stated that reductions on Playstation 3 hardware costs have "progressed according to plan."
how much was posted that they lost today again?
390 million according to this article: http://www.n4g.com/industry...
Lol. Noob thinks Sony's whole business is only making PlayStations.
looks like a noob doesnt know the meaning of a "net loss"
How much stock you have in MS again?
who me :D i own 10 or um 0.ooooooooooooooooooooooooo1%?
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. http://247wallst.com/2009/0... ____ 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. http://arstechnica.com/micr...
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
so its true they did shrink the chip. this could mean possible price cut or/and ps3 slim
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.
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.
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
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.
examiner.com 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 examiner.com 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. @bellow Sorry for the confusion, I just meant "neck to neck" comparing last quarter shipped figures. xbox=1.2 and ps3=1.1 (millions)
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.
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.
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
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)
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.
Your kind is not welcome here in the fun zone. Suggest you move your ass to <---- that zone.
When you don't have many games you just have to resort to argue about sales. =D
PR spin or actual plan....who cares, once I buy some of their stock i will :P
we will have to see how sony plays there cards but i think there will be a price cut
I certainly agree that 'eventually' we will see a ps3 price cut. The problem is, Sony has been losing $3-4 billion on the ps3 thus far. With their cost reduction, they have finally arrived at slim profit margins or at least break even. Thus, at $399 we can expect them to recoup, over time, some of the tremendous monies that have so far been expended in securing third place. However, if Sony drops the price again, this will set them back to 2007, whereby sales will undoubtedly increase, but so will the ongoing hardware losses. No one really knows what sony's plan is, but that hasn't stopped certain people expending huge amounts of time and energy speculating with scant evidence, much akin to the dubious practice of reading tea-leaves... Nevertheless, it will be tremendously interesting to see what decision is ultimately made with regard to the timing of the price cut of the ps3. As a side note, I wonder what level of cost reduction has been applied to the 360 manufacturing process? If the 360 has also benefited from reduced costs, will we see a further 360 price cut to match the eventual ps3 price cut? interesting indeed.
Sorry, but you don't know how much reduction Sony has implemented or about their profit margins for the PS3.
i think they will roll out a slim model with the same price range to minimize losses.
I'm stil working under the pretense: Slim will come out at current PS3 price Current models will be reduced to clear stock Slim will take up that price once stock is cleared.
True, as it would look odd having them sit side by side with the slim model priced cheaper than the original
are speculating on PS3 price drops/manufacturing cost asking for a price drop etc etc from Sony. People have been speculating asking for price drop for over two years now. Why not the x360?.
Because the 360 is cheaper. And it's retarded to as the second most expensive console to lower it's price instead of asking the most expensive.
Because if Microsoft likes money (more than customers), and they have consoles that cost less to make than to buy. Sony cares about customers (more than money) so they use higher quality parts and a good console.
a_squirrel, do you honestly believe that Sony cares about you as a person more than the money you put into their banks?
the elite is still $399. That SKU is more or less the direct competitor to the PS3. People are not asking for its price to drop. I can only guess that PS3 is on most peoples mind all the time. Price really is the only barrier left. @Vicious. Yes Sony does care about its customer. Thats why they make quality products. You can't care about money if your customers don't care about your company as you will basically won't have any money from them.
Marquis, he did not say you (or anyone) as a person, he said customers, which by this im guessing he means the quality of the product that is handed over to the customer.
Sony didn't revise their 13M forecast for the PS3 in their latest report, so they expect to have sold 13M units by the end of their FY. A $100 price cut is needed for that to happen. A slim is also basically confirmed.
The fact that they didn't revise their targets and are still sticking with a 29% increase year over year has to be a price cut. There's nothing else that it could be, and they don't make those sales estimates lightly.
Unless they are confident in their current sales that they will reach 13M at the current price. Though I do expect a price drop sometime this year.
I see them doing more bundles than a price cut.
@mrblac In fact KZ2 and MGS4 bundle is sold out at Best Buy, so this could perfectly support your theory. Another factor everybody is forgetting is FFXIII. Guys, do not underestimate the impact of FFXIII on Japan. I think it will be much bigger than the recently released DQXIV on the DS. Not to mention that GT5, with high probably, is debuting this december. I want to say that even w/o a price cut Sony will be doing quite fine, but I do believe a price cut is indeed coming.
"Another factor everybody is forgetting is FFXIII. Guys, do not underestimate the impact of FFXIII on Japan. I think it will be much bigger than the recently released DQXIV on the DS. Not to mention that GT5, with high probably, is debuting this december" I think you don't know much about Japan and DQ series vs FF. First it's DQ IX and here are the sale figure (final numbers) FF IX 2.86 m in Japan FF X 3.02M in Japan FF x-2 2.0 m in Japan FF XII 2.42M in Japan DQ VII 4.12M in Japan DQ VIII 3.68M in Japan DQ IX 3.24M in Japan ( 3rd week) I can't see how the PS3 with a much smaller user base than the PS2 had at the time of release will somehow sell better than Japans JRPG king on a system with a much larger user base. Unless you believe that a lot of people are waiting for it before buying the system. But a great deal of them did to get the demo from the special PS3 VII Blu pack. DQ > FF this is a fact in Japan.
I seriously think Sony will release a $399 Slim model and lower the "fat" model to $299. I don't know why but I don't think that the slim model will be cheaper, it'll just allow the current model to go down in price while preventing too much money loss. If the slim is cheaper and sold at 400 there will be more profits to be had no? Therefore the Slim could be the premium version (like xbox elite) while the "fat" model could be the normal (like the pro). Just my opinion.
Sony will sell the slim if real at 399 at profit to cover the cost of a price reduction on the fat model until they are out of stock. PS3 slim will sell like hot cakes especially when it launch and Sony would be stupid not to cash in on it. Once the old expensive models is gone then they will bring the slim price down to 299.
Not gona happen
The 360 only outsold the PS3 by .1 million this last quarter. A PS3 price cut will destroy the 360 unless Microsoft cuts the price of the 360 to free. :D
That would be better for Sony financially, but they are stopping production of the other models in clearance of the cheaper to make slim.......so if what you're saying is true - that price cut wouldn't last long. There will be a $299 Slim out this year, it's a given.
The PSP Go! spits in the face of that theory.
I'm pretty sure there is a lot of stock sitting in warehouses and with retailers. The previous old models took a few months to clear out. Without it being cheaper than the slim, the old 80gb models just won't sell. With a $399 slim, they have demand so can justify that price at least initially. My prediction is for a price drop of the PS3 slim about 3-6 months later, but maybe not to the same degree that the 80gb price is cut.
Microsoft SHIPPED .1 million more 360s than Sony did PS3's
Ah, who cares about details!?!
What about a $249 slim? I think 13 million is a stretch even at $299.
i think not. The fat PS3 could go down to 299 or even 349 if the slim is real.
$249 for a PSP Go or pay $50 more for a PS3. Why not have them equally priced and positioned? I see the phasing out of the 80GB already (bundles, etc) and no talk of the 160GB as a sign. The slim is supposed to be 120GB, right? So you have the slim at $249, and the 160GB bundled with 2 games or some other incentive and have it drop to $399. I just don't see them releasing the PS3 slim at a higher price, with Activision publicly crying and every blog/site whining about it being too expensive. I still think 13mil is a super aggressive number, but $299 imo is what it will be priced. Let's see what Kaz says at TGS :)
Okay so their plan from the beginning was to lose more than 5 BILLION DOLLARS on the ps3??? All of the ps2 profits wasted, all for the glory of last place. That was the "cost reduction plan??? Heads need to be rolling at sony headquarters. Kaz Hirai expected the ps3 to be profitable by AUGUST 2008 - OOPSIE!!!!! http://kotaku.com/382413/ps...
I'm just guessing but I think the 08/08 prediction was pre-RECESSION. When in a 12 month period up to 10% is out of work and everyone's nest eggs evaporated it can change things. Is it just me or is that a big DUH?
Slim would be great to see when release. I wonder if there will be a bundle.
99% chance of ps3 slim coming out this year
in order to keep psp lasting for another 5 year and hit that 100 million(psp is already over 50 million sold) like ps1/ps2,they are launching the new PSPGO. in order for ps3 to stay in the game,they will in my prediction,launch PS3SLIM to go with that relaunch of psp. it's interesting that some of sony's biggest fall games come out in october like uncharted 2.same with pspgo and mgs and gtpsp.not only that,they are launching new controller colors in red and blue. something is going on.and i think kaz will announce exactly what that is september 24.just before october which is interesting.and what is the headline for TGS 2009 for sony: "NEW TACTICS." slim is coming and and a whole lot of something else.should be interesting to see the results. as for cmoney,microsoft lost billions coming off of xbox at about 6-7 billion.they're no different in losing money.and unless you have common sense,we are in a "recession."but you must have been in a COMA for the past year and a half. apocalypse..............
WOnder if it`s a ps3 slim . How much would the price be ? $ 300 ? 350 ? I hope they do a bundle .
When I read the topic for Sony at TGS was " New Tactics " my head spun. It must mean that they are doing something different with their systems. New tactics for: PlayStation Network ( they consider it a platform ) A lot of independent development, reworking of the network, more features. PSP: Obviously the PSPGO and digital distribution ( Along with the long awaited release date of Kingdom Hearts: Birth by Sleep ). PS3: The PS3 slim with some announcements on some games for their motion controller and possibly a release date for GT5. Not trying to hype everyone up but i'm just giving some standards to Sony right now. Sony you better be reading this! Oh and give up on the PS2 already, its killing the PS3's sales. Casual consumers are probably asking themselves why they should buy the expensive PS3 when they can buy the cheap PS2, with all its family games.
well, they want to expand the PSN beyond consoles, so the integration of the viao/Walkman/Games division left us with clues. i have a feeling that PS cloud has alot to do with these "new tactics". they did saying that want full integration of that their products to talk to each other by 2010. @PshycoNinja They are going to kill the PS2 by 2010. they have to show people that the PS2 withstood 10 years as promised.
Your side is the one that has news of Sony losing money, you get the inferior version of Rage, Sony hiding the loss of the PS3, and hopes of and Splinter Cell PS3 were squashed. You lost Battlefield 1943 comparison, MS makes profit on 360, and that secret game from PXE extreem ended up being nothing. The PS3 is still being outsold by the 360 worldwide, the PS3 is still last, and the PS3 has lost more excusives this gen than Nintendo and Miccrosoft combined. 98% of all multiplatform games look and run better on the 360, you still only have text chat, and you don't even have one game to cross the 5 million mark.
"The 360 only outsold the PS3 by .1 million this last quarter. A PS3 price cut will destroy the 360 unless Microsoft cuts the price of the 360 to free. :D"... lol... yeah... only one million and let's forget completely about the other 8 million or more console lead the xbox 360 had over the PS3 as of last year in the US alone. You do make one valid point... "Unless Microsoft cuts the price of the xbox 360...." Last time Sony drop the price two times... the PS3 started to pickup and once Microsoft reacted with a price drop the PS3 sells went right back down.... which means, Microsoft price drop nullified Sony's price drop and left Sony only with loses on each PS3 sold. Here is the funny part that many ignorant here fail to see... The xbox 360 in comparison with the PS3 does not have an expensive Cell CPU nor an expensive blu-ray drive. So, if cost reduction is happening to the PS3 one can only imagine what kind of reduction cost is happening to the xbox 360 who's parts are manufactured in standard computer-part-alike assembly lines. Both the PS3 and the xbox 360 will reduce cost as they get older... If Sony manages to cut price there is no reason why microsoft shouldn't be able to do the same. I think right about now with the console lead it's obvious that Microsoft is able to turn lots of money on game royalties which means they can break even on the hardware and still make money.
Ok . So what if Microsoft does do a price cut , you think it will effect sony that bad ? The lowest priced xbox 360 is 199 . They can drop it to 150 but that wouldn't be ]effect sony`s ps3 sales too much . They probably have a slim coming next year or this year .
Can't wait for TGS.
And the plan is: PS3 Slim by TGS.