1UP:Speaking to Reuters Japan this week (via Hachimaki), Sony Computer Entertainment President Kaz Hirai described the PlayStation Network as "in the red" but believed that it would turn a profit during the next fiscal year.
so PSN in profit next year as well as the console. no wonder they just bought that factory back @Ziro: PSN is free. Sony only make profit from PSN from things like HOME and virtual goods. of course they have PS+ now, but that won't be the only reason they are making profit. it's simple: Sony have over 60 million people on PSN and EVERY PS3/PSP owner has somewhere to store purchases
Sony has been making a profit on PS3 ever since the Slim was released in 2009. PSN is just another goal to work on for Sony to grow profit.
Actually Sony didnt start posting profits on the PS3 until about febuary.
Spenok, you obvisouly don't count millions of ps3 games, right ? :)
(and blurays !!)
Edit: Look at the Lolfanboyz, they are, like many times, trying to spin a good news, in bad news, sony is making a profit next years with a free service, and they only remember "in the red" ...denial/delusional much ? :)
@KoolNo Actually, I believe what Spenok was saying was that Sony didn't make a profit on the actual PS3 by itself. We all know that they make up for it with software, etc, but in terms of actual profit off of hardware, it WAS around February when they actually started selling in the black. I love the PS3 and couldn't live without it, I'm just trying to get facts straight!
Well like i said, PSN could have waaaay more profit if they make an ID change feature like we requested like only 2 YEARS AGO!! 5-10$ for every name change, but Sony hates money.
Sony hates money? Are you crazy! How much do you think it cost to make the PS2. They are making a killing of those alone. Now the PS3 has been making them money ever since the slim was released. Also Sony just purchased the Toshiba Cell chip plant back. They will then terminate the partnership between NSM. Thats called cutting out the middle man. This will save them a lot of money, and will be very cost effective. This in turn will allow them to to produce the cell chip for a reduce rate. In turn it will cost less money to manufacture the PS3. Now they could do one or two things, maybe even both. 1. Continue selling the PS3 for 299.99, and continue to have a huge profit 2. Drop the price of the PS3 enough that it sell more because its cheaper, and still yeild a profit. Sony doesn't hate money. They showing you how they make money.
Haha, Clarence, I think he was joking. He's just saying that charging for a name change would be an easy way to make money for Sony. A joke. You know, like SE hates money for not remaking FFVII? Of course they don't hate money, it's a joke.
Yeah Clarence and then quality will drop like every Sony product now
$5 - $10 a change? This isn't XBL, get those gouging prices out of here.
sony gives away to much stuff to turn a profit
Yeah everybody should love Activision or MSFT where customers are really just that, money I really don't get it why people wants SONY games division to turn into one of those...I really don't...guess Playstation have never touched their heart with any game :(
I don't subscribe to PSN+ because I truly enjoy my free online playability. I always thought I was a scrooge when it comes to buying PSN games and DLC. But since it's the end of the year, I looked back at my expenses on PSN in 2010 alone and I can't believe I spent $200!
That's exactly what psn+ is for. It provides reduced prices on a lot of items on the playstation store. It might cost you $50 dollars a year but for someone like you it could save $100!
yet no one cares that sony makes a jackload from there lineup of exclusives ._., or ppl just forgot...
... They do?
pretty sure that a lot of people care about exclusives
Now, you SONY Super Fans should understand why XBOX LIVE is $50 a year. Also, LIVE has sales & cross game chat.
We all pay for goods & services, there are people working & someone has to pay for their hard work. This is how things work: people work, they get paid for their work.
60 million people on the PSN?
SONY games division must be headed by REAL gamers that own a PS3 themeselves, it doesn't matter if numbers were red or black, they have been producing new IPs and tons of 1st Party games since launch It's at that level where we customers are really affected by those figures at corporate level and one must say that PS3 owners can give a crap about it! as a customer I don't notice a sh*t! Thank god for the Playstation brand!
making profit with out charging 60 bucks a year
Still can't see why they're charging for XBL.
Sony will make a small profit, for about half of the 360's sold, MS make atleast 60 a year off them. MS makes large profit. Not to say they aren't cu*ts while doing it
"Still can't see why they're charging for XBL." You sound like Sony! duhhhhhhhhhhhhhhhhhhhhhhh
Because Microsoft knows they can get away with charging it's customers $60, then brag about how much they made off of those customers.
"Still can't see why they're charging for XBL"
Why do people go to Star buck and pay $5 for a coffee when they can can get it at Burger King for $1.
Why do people buy Lambos when they can get a Civic for a hell of alot less.
Why do people pay $500 for a hooker when they can get it free form the wife.
"Why do people pay $500 for a hooker when they can get it free form the wife."
you dont understand marriage or havent been married long.
Talk about flawed logic. In each of the cases you mentioned there is a massive different in quality (not sure about the prostitutes vs. wife though haha) which warrants the premium price. In regards to PSN vs. XBL however, the massive difference in quality is simply not there and the price difference, as a result, is not warranted.
"Still can't see why they're charging for XBL." Because they can its that simple. We could argue all day if it's worth it or not but the fact is they came out first and forced people to play online and once they had that initial install base it was all easy street from there. They could increase XBL tomorrow to $100 a year and people would pay it.. Why? Because it's a better service?? No because you have no choice if you wan't to play half your game as nowadays theres more in the online part of games than offline. They got people in a corner and they holding all the cards. People can either drop it and go PS3 (which a lot don't want to as they actually enjoy Halo/Gears etc..) or pony up every year/month.
you cant? let me help:
"Still can't see why they're charging for XBL."
Hmmm, let me say this as simple as possible...
Because it's a BUSINESS.
Sony isn't making a profit yet still "in the red" Look ^ up. Did you guys just skip that part or does your mind just block it out?
they are using the new SDF 5000 glasses ...its some new sony tech it hides sony's failures from you in 3D!!!. sick shyt man... i tried getting em but couldnt find my size.
The fact they are still in the red is a failure?? How thick are you?? Anyways on topic it's making a profit but they are in the red purely because until all those millions of consoles were sold and PSN started to become a dominate horse like it is now (not comparing anything here or knocking XBL) they spent a lot of money hosting all those demos and actually building the service money they have to make up. It's not free to host an online service and until you actually get the service to a standard to make people buy the products on it they was gonna go downhill. Also the fact they will be making a profit next year shows that they still won't probably be charging for it.
or did you miss the PSN part of the title as well ? it's not like the Gaming division as a whole is making profit since the PS3 slim was released , right ?
we won't know until their fiscal year is up....March 31, 2011. That's just for the record.
"making profit with out charging 60 bucks a year"
But aint thats what the psn plus subscribers doing, paying yearly to keep the stuff you brought?
lol i make it sound like a scam.
you keep the things you buy/got discount on, but not the free games.
i love these xbox responses. Its a typical misinformed pre-teen.
Must be due to PSN Plus why they are making a profit. Quite shocking that they have been in the red all this time vs MS who makes $1bn a year on XBL.
That's because XBL charges just to use the Online services
If Microsoft doesn't even make any profit from Xbox Live, then it would be sad. Sony could easily make a billion a year from PSN too, if Sony charges us to play online. However, Sony isn't like that. And that, is a great thing for PS3 gamers. Zir0, I don't know why you are so proud that Microsoft is charging you to play online just so Microsoft can make 1 billion profit a year. That's just sad. It's like you are proud that you got rip off.
It's a shame that sony don't make a lot of money from the ps3. I feel so bad for them. Hopefully they make a lot over the next few years. _____________ Sony 'til I die
I guarantee Sony has been making money from PS3. SCEE probably lost some but that's due to the fact Blu-ray one the battle and Sony no doubt make a pretty penny from licensing.
more like the Playstation Network because it cost money the maintain yet its free to users
Here's how much profit/loss Sony, Microsoft and Nintendo have been making. This is from their own financial reports by the way. http://neogaf.net/forum/sho...
That is a bit too general to show how much M$ is making from 360. This is why some investor were asking M$ to make Xbox a seperate company. The contribution or losses of the 360 are not shown in profit and loss statements. You have Kin and Zune tied in with 360. But even with those losses, the devision still is profitable because of 360. PS3 has has been making back some money since the slim and is also ofset by still good PS2 sales.
They would take a bullet for us customers ____________ Sony 'til I die
Gamers remember so trust me people will take everything into account when they make a purchase next gen. This generation should not end until they have truly drenched every last drop from the systems. Naughty Dogs next project should be to release a launch title on the next console whether it is the PSP2 or PS4. Sony should try and have more first party software at launch.
Really, we have no idea how much Sony makes from the PS3, so it's a bit premature to say that they "don't make a lot of money from the PS3". Back in August before the slim was launched, Sony confirmed that as a platform the PS3 had been profitable for some time. What we don't know is how profitable. The PS3 is only part of a larger division that handles many products, just like Microsoft's Entertainment Division that oversees the Xbox also covers things like phones, Office for the Mac, Zune, etc. When the company's roll out their fiscal updates, they give us the division as a whole and don't break it down other then throwing investors key highlights. We know the PS3 is profitable because Sony flat out confirmed it was. With the 360, we actually don't know if it's profitable or not. The division turns a profit from time to time but we don't know what part of that, if any, is due to the Xbox itself. In fact, just about a year ago, analysts at Caris and Co commented that Microsoft was still losing money on the Xbox even though the division was turning a profit. It's very possible that that's the reason for the 360s - that the old consoles were simply not cost effective either due to their failure rates or due to contracts with the suppliers over the costs of making the 360. We saw Microsoft sever ties with one of the 360 makers a couple of years ago due to costs, and now we're seeing Microsoft and Motorola go head 2 head as Microsoft no longer wants to pay Motorola's fees for using their tech in the 360. This sounds like a product with some cost issues going on in the background, just like Caris and Co said. My point is to make a comment like "it's a shame Sony doesn't make more on the PS3"....well, we really don't know the breakdown for either company when it comes to what they make off each console. The exception, of course, is Nintendo. Games are pretty much all they do so when they unveil their numbers we can see exactly what they're bringing in from the Wii, or the DSI. In that case, portable gaming, not the Wii, is what floats Nintendo's boat - but the Wii is certainly no slouch when it comes to bringing in cash.
I'm surprised they're not already making a profit considering the prices of the PS3 games that are available on the store. £19.99 for MAG? £31.99 for Prototype? Pfft. =/
They need to make the best offers on the store more "in your face". I like the store but most of the time you can't see if there are any amazing offers because everything is hidden away. In the EU store anyway.
I don't think Sony has much control over Activision, but Sony do get money from the sale.
Yeah certain games do seem pretty pricey considering what they are(I think I once saw a chess game for like 20 bucks). I'm just surprised that the pricing on the video store hasn't come down yet. 4 dollars for a digital copy rental that expires in 24 hrs after you start it is too much with netflix and redbox around. Then again psn does get almost every major film when it actually releases, unlike netflix and redbox.
I think once they are out the red and into the green they can start to make even better offers rather than relying on 3rd partys to make the best offers.
A profit is written in black not green
He was thinking in Christmas colors.
but psn is still free and a quality service. that shows that they care about the fans. if Sony didn't give a fuck, they would have already charged for psn.
Or just shut it down like MS did with the original Xbox.
Agreed. Sony is a pretty damn awesome company. And i am glad to own a PS3. Some of the best times i have had with gaming.
PSN will become the premium online service for all gaming.. Right now they are still growing. Let not 4get XBL has had a 5 year head start AND was created by ppl that understand how to make a operating system and HOW to make money of it
They are planning for the future. I bet you home will be seemless on the next gen console and more intergrated with all things PSN. They have alot of work to do on intergrating all their services. You should be able to go to the cinema in home and watch any paid movie with friends. They have a good platform but the intergration is just not there. If the PSP2 is powerful enough to run home they should make home a choice over the xmb so that home actually makes sense. I really like what Sony has done but all the loading and the lack of intergration hold it back from its potential to be the outright leader. Nothing needs to be upgraded or changed in home. It is a very beautiful place. Online connections are an issue but the power of the future console should offset the loading of different spaces at least. They should have every game that you can get on the store accessible through home with background download and everything etc... Home could have been something really special and since they could litterally transfer the assets to the next system.
damn get over it already! just because microsoft knew that online gaming would be huge and done it right before sony doesn't equal a "head start" if the japanese company, sony, put more care and worth in the future of console gaming, meaning online gaming, then no one would have a "head start". i guess then since this is ms 2nd console and sony's 3rd, sony has a " head start" since 1995. everything that has done better than anything sony to you guys is EXCUSED by the bullshit "head start" i guess since samsung t/v's are seen as better quality, then they had a head start as well. get a clue.
i thought there was an xbox before the 360.....
or are you saying the ps2 could connect to psn ??
ok yes the ps2 had "online" but there again is it microsofts fault that sony didn't have a network? and that they created one with live. it is also obvious that psn wasn't even fully ready when the ps3 was already out- why else do you think you see so many firmware updates to make it better? why do you think the 360's xbox live use is so much more refined and integrated over the ps3/psn? common sense. sony didn't believe that online was going to be huge. live released last gen, and with the "starter kits" also sold well, and when the xbox was gaining steam, micro knew that with the deal with nvidia its days were numbered. during this time MS already knew where it was going to go with live with the 360, and they did. it's success especially in the U..S is mainly because of live. starting last gen the reputation that the xbox brand gained from it's online experience crushed any rep sony had with "ps2 online" really simple. many today that i know still regard psn as "crap" even when i tell them its not to bad, and it's free. whatever. come ps4 when sony's online is a lot more like live in ease of use, and more feature rich, then come back and talk to me. competition fuels ALL industries, and even i think the dumbest of fanboys- even on n4g should understand that. "head start" or whatever BS excuses they make are just that BS. i guess ford has the biggest "head start" in the auto industry in the U.S. i guess the horses should be pissed off lol.
"common sense. sony didn't believe that online was going to be huge." You know they have a company called SOE right? SONY ONLINE ENTERTAINMENT. They were the ones who made everquest which was the biggest mmo before WOW. They've probably been more successful at PC games than Microsoft. (neither one of them is doing much right now on pc)
They've probably been more successful at PC games than Microsoft hahahahahahahaha that's some funny shit right there. please tell me how many games sony has made and or published for the pc? the only response to you dude is WTF! also sony online entertainment isn't the same as a network. psn= playstation network, xbox live= microsofts network for 360. all that i have posted is 100% true. MS knew they couldn't compete against sony and it's game studios. they seen only one hole in the playstation and it was online. they jumped onto it and it's the reason why the xbox brand is as popular as it is today. with the inclusion of games like halo of course, which if we look back halo 2 on live was a MEGA hit for xbox live, nuff said. sure ghost recon, rainbow six and others shared success on live but halo 2 kicked that service off in high gear. funny how ps3 fanboys have such short memories when it comes to anything xbox related. go ahead and disagree more with the facts i don't care. most of you we're pretty young even back then lol. the rest of us weren't.