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270°

Sony Aims for PS3 Break-Even This Year

Sony currently incurs an estimated $200 loss on every PlayStation 3 sold, but an exec from the firm said today that loss could be eliminated this fiscal year

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next-gen.biz
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actionjackson6118d ago (Edited 6118d ago )

has nothing to do with break even. If anything, a price cut hurts the bottom line (break even point). Break even is dollars not quantity. To break even, you are manufacturing/shipping/selling /marketing the product equal to the current sale price. Read the article, it's talking about reducing manufacturing costs. This is actually great news for sony if they can make it happen. They will shave off $200 from the cost of making and selling the PS3. That's a 25% growth on efficiency of manufacturing.

Syko6118d ago

How will they break even with the whole RRoD fiasco...Oh wait wrong console ;P

Seriously though I thought the RSX would reach 65nm at or before the Cell got to 65nm. This still dosen't put them in a good position to get in a price war with MS. So they might still end up taking loses, after the price cut that is coming soon to the 360.

DJ6118d ago

Almost every part of that console either had never been produced, or had never been produced on that scale before. Cell costs around $83, and RSX is about $98. Blu-ray Drives are $70 (after the diodes dropped in price). Right now their main concern is eliminating the debt they accumulated from the first million consoles, which were sold at a $200~240 loss per unit.

There's little doubt that Sony will break even this year considering how fast Production Costs for the PS3 are dropping, and how the system's popularity is rising. Well, ok, more than just a little doubt, but things are looking better for them.

Lightning Mr Bubbles6118d ago

If the PS3 gets in trouble again this holiday, I really believe they will have no choice but to cut the price again. It's not up to them, it's either cut the price or watch everyone buy the cheaper XBOX 360.

actionjackson6118d ago

what break even is. This is actually great for Sony. You are breaking even on a console that you were supposed to be losing $200 on. I'd say that is exceptional work to cut costs by that much percentage wise it's huge. If it is made and shipped for $800 (600 + 200), then a $200 decrease would be 25%. From an economic standpoint that is amazing for Sony. And I don't think the playstation is competing with X360. I think they are competing against themselves at the moment.

Anything but Cute6118d ago

That's why we expect another price cut, if they are close to breaking even, then it's possible and will be needed. I expect XBOX 360 to soar this holiday and for PS3 to be in heavy need of another price cut or die off.

So I understand indeed that breaking even is great news. They will need another price cut and if they are breaking even, it's obviously possible.

hazeblaze6118d ago

The 360 price cut won't be more than $50... it's not going to be significant enough to really mean anything to consumers. Especially not the ones that aren't 'turned on' by the type of games that come out on the 360.

On the other hand, we've already seen how effective the $499 price point is for Sony. And it'll be even more so this holiday with the stellar library of games the system will have by then. Sure, another price cut would help... but it won't be neccessary for them to enjoy a good holiday. In fact, might be better for them to save the next price cut for the release of MGS4 & KZ2.

aiphanes6118d ago

Remember the Xbox 360 does not include HD-DVD or bluray. Bluray is included in the PS3 along with wifi and a easy to upgrade 2.5 inch SATA harddrive. All sony has to do is make people know this and get all those awesome games out on time. They will own next year, with Infamous, Killzone 2, The Agency, MGS4....

Lightning Mr Bubbles6118d ago

The rumor is Microsofts Price cut is gonnna be $50 and there was a rumor of a 40GB PS3 for $399 from gameInformer. I belive both those rumors to be true.

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200°

Microsoft’s Surface and Xbox hardware revenues take a big hit in Q3

Microsoft just posted the third quarter of its 2024 fiscal financial results. The software maker made $61.9 billion in revenue and a net income of $21.9 billion during Q3. Revenue is up 17 percent, and net income has increased by 20 percent.

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darthv7215h ago

Xbox content + services up 62% while hardware down 31%... seems about right with the way they tout you don't need the hardware to play. People can play on their phones or smart tv or other means. I don't hardly play on my consoles directly since getting devices like the logitech g-cloud and ps portal. Which is to also say I have been playing more digital than physical because of these devices.

solideagle2h ago

you should apply in MS PR team buddy, I think you will do a great job in my humble opinion :)

Sonic18817m ago

I thought darthv72 and Obscure_Observer already work for Microsoft 🤔

Cacabunga2h ago

I can tell people like you are an absolute minority..

If service is up means their fans and fanboys accepted this model and subscribed to it. The near future you will see a big decline because the service is saturated.

shinoff21831h ago

But that's been ms for years. When things aren't going their way they try to change the way things are said. For instance console sales are down, they stop telling how many sold instead telling us how many hours spent in halo or headshots. So it makes sense console sales down just say people are playing on more devices then previous. What they won't say is how many xbox players jumped ship to ps5.

Cacabunga26m ago

Hardware sales are so bad that Sony and Nintendo are blowing the sales off the water with their hardware.

If Xbox are losers, others aren’t..
Xbox already tried everything with Xbox live then subscriptions went down so much that they had to find something else. Their fans subscribed then reached saturation rather quickly.

Hardware and exclusive games is where it’s at! Keep gamers excited, announce decent software and people will support you

purple1015h ago

Xbox hardware revenue tanks to lowest point of Xbox Series generation

Profchaos4h ago

I'm not surprised surface is struggling they aren't relevant anymore

XBManiac3h ago

Too expensive hardware when others offer the same or more for less? Good work, Green Team.

SimpleDad3h ago(Edited 3h ago)

"Despite some early successes for Xbox games on rival platforms, Xbox hardware is down by a massive 31 percent this quarter."
"Without Activision Blizzard, Microsoft’s overall gaming revenue would have actually declined this quarter."
"Xbox content and services would have only been up a single percent without Activision Blizzard..."
"It looks like next quarter is going to be a similar story for gaming at Microsoft, too."

That is crazy... so A/B/K is carrying the whole Xbox gaming.
Oh and Microsoft will be fine. Windows, Office and Cloud are growing with each pc purchase.

purple1013h ago

Activision: "we gonna need a bigger rucksack/backpack please"

Microsoft: "why's that"

Activision: "to carry yo' weak ass'

Profchaos2h ago(Edited 2h ago)

Top brass have also wanted to start seeing returns on the 100 billion they have put into various Xbox related moves so seeing more multiplatform games is highly likely especially from abk

It's basically saying that PlayStation is the reason Xbox is afloat right now thinks to Ps5 versions of COD

Kornholic1h ago

So basically PS and PC gamers' money is keeping Xbox on life support.

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140°

Why Monopolies In Gaming Must Not Be Allowed

As of right now, there are no monopolies in the games industry, and for the sake of the medium as a whole, they never should either.

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thorstein14h ago

Shouldn't be allowed in any field.

Inverno10h ago

And yet the biggest tech companies in America are essentially that. They buy up all the small comps only to kill them off and steal what they have, and if they can't buy em they bleed them to death.

jwillj2k49h ago

Eventually they’ll realize the value is with the employee not the company. Buying an IP means nothing if the people who contributed are let go. They’ll get it one day.

MrCrimson8h ago

tech is different because they buy threats and then kill them. Twitter bought Vine and did nothing with it. Despite people seemingly liking it. Could've had tiktok a decade before bytedance. go figure.

Zenzuu9h ago

Monopolies shouldn't be allowed regardless. Not just for gaming.

MrCrimson8h ago

They buy IPs not talent. That's why these buyouts never work and the IPs die. Right now it's too expensive to develop games - but I expect that to shift maybe as AI tools can make it easier. The best games have been indie games for awhile as big developers fuck their ips to death with "games as a service" -

50°

Mugen Souls Retro Review – Sexy Demon Space Adventure

Gary Green said: We have a juxtaposition of 2D and 3D visuals, flashy turn-based combat, quirky anime characters with cheeky dialogue with plenty of partial nudity; Yes, this is a Compile Heart JRPG. Whilst the engine is borrowed from Hyperdimension Neptunia mk2, Mugen Souls is more of a Disgaea spin-off. It’s not a strategy RPG as such, it merely sits within Disgaea’s ever-expanding universe (Multiverse? Netherverse? Your guess is as good as mine). You won’t find cameos though, since Mugen Souls is a franchise which aims to stand on its own two feet.

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