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Sony: Profitability More Important Than Passing Xbox 360

The Xbox 360 and PS3 are only a few million apart in global installed base now, despite a year's head start for Microsoft. A number of analysts have predicted that Sony's console would "soon pass the Xbox 360 for good," but Sony itself doesn't seem to concerned about topping Microsoft.

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MintBerryCrunch2824d ago ShowReplies(3)
NYC_Gamer2824d ago

its all about profit not what so called place your machine holds

-Alpha2824d ago (Edited 2824d ago )

Yup! Companies never care for it because their goal is profitability. Your position doesn't determine that.

The Wii is the ONLY clear success here.

-Xbox 360 has been plagued with RRoD and hardware faults

-The PS3 sold at a loss

Both have had dark struggles, but the Wii is the only console to have had such smooth sailings.

Sales don't matter if you are selling at a loss or selling a broken product that needs 3 years of warranty support.

Codeman4202824d ago

agree with the wii part but now they are paying for it cause they have no software just like the gamecube.

Sharingan_no_Kakashi2824d ago

"The PS3 sold at a loss"

All consoles do initially. The Wii did also. Sony MS and Nintendo do this in hopes of making up the profits in game sales.

Bathyj2824d ago

How can you say the Wii is the only success?

Every console has always sold at a loss at the start. Its the way the industry is structured. You sell them cheap (cheaper than it costs to make them) and get your money back on games and hardware by the end of the generation.

Ok, bravo to Nintendo, they brought out cheap hardware because its barely improved from the Gamecube, they sold it expensive, (expensive compared to how much it cost to make) and were lucky enough to convince the masses to buy it in droves.

They might have struck pay dirt, and I'm glad because they were going the way of Sega for a time, but I'm still glad other companies like Sony and M$ still tried to progress hardware and give us the best they could put out, and they probably knew full well at the beginning of this gen that life cycles would have to extend to not only give more time to recoup those losses, but also tap out the hardware which is significantly more advanced than the Wii..

Nintendo might be well on top from a business point of view but in all honesty Wii is my least favourite console of all time from a gamers point of view and I started on Nintendo with Game&Watch. I dont care how much money they make, but if thats all you meant then I guess you can disregard my whole post.

Just take away my point that as a gamer I consider PS3 and Xbox to be successes too.

-Alpha2824d ago (Edited 2824d ago )

The Wii is the clear success in that it was the most successful, I didn't mean to say that the other two consoles did not succeed but they had bumps along the road.

Yes, maybe other consoles sell at a loss, but Sony took a particularly hard fall this gen. PSN wasn't making them much profits either and Sony as a whole wasn't doing well as I recall.

Alpha_Gamer2824d ago

The Wii is the only success?

Hmmm, I`m not sure we`ll be singing that tune in a few years. Lets see how it can stand the test of time against the PS3, it won`t be easy.

kaveti66162824d ago

wii sold at profit at launch.

r1sh122824d ago (Edited 2824d ago )

@Alpha-Male..
Youre right.
Its always going to be about money first, before anything else becomes a factor.
Even with Sony at 3rd they wont care, they are making bags of money from blu ray royalties. They want to make a large profit margin on the ps3's just like they did with the ps2. How long was it before the PS2 actually got a price drop?
Even when the PS2 slim came out it was still pretty expensive, I remember when I got my 360 (Arcade) that the slim ps2 was £30 cheaper....
Sony will not drop the price, if stores do they are doing it to drum up sales for themselves..Eg cheap ps3 but no games, so you buy a couple of games and the store makes a larger margin on them than the ps3 itself.

siyrobbo2824d ago

This generation is good all round, which other generation had each major competitor at a minimum of 50 million units? Especially before the Asp even went below $199 in case of ps3 \ 360.

malandra2824d ago

they're just saying that because they know for sure that it will happen, so they say it's not big deal

+ Show (7) more repliesLast reply 2824d ago
Ravage272824d ago

We all know it is only a matter of time. As a gamer though, the only thing i care about is the games and Sony has been killing it this year.

We are experiencing an avalanche of must-have games at a rate of one exclusive per month. LBP2 is already a candidate for my Game of Forever.

The upcoming price cut will bring a new wave of ps3 owners. Right now though, Sony is doing a fantastic job coaxing money from the current 41+ million base.

kreate2824d ago

but i do feel sorry for Sony.
since they lost the most money this generation out of the 3 console makers.

nintendo making the most. microsoft also making a grip load from their xbox360. i mean.. a DVD drive only cost 20 bucks at walmart. microsot probably makes a crapload from xbox hardware.
on top of that... all the idiotic consumers who pay for xbox live. microsoft is also banking.

but sony... poor sony... lost millions of dollars. even if they make a little now from the ps3 hardware. it hasnt covered all the cost they already spent previously.

madjedi2824d ago

@kreate You do realise sony is much larger than playstation right, sony music, sony movie studios, sony tvs ect.

"but sony... poor sony... lost millions of dollars. even if they make a little now from the ps3 hardware. it hasnt covered all the cost they already spent previously."

And you and all these other analysts can prove this with what financial reports exactly, last i heard sony was making profit albiet small on the slim versions or shortly before. Sony has royalties from br movies/games, their music ect.

Ms had to set aside either 1.3-1.5 billion for rrod/hardware repairs, then spent another half billion on kinect advertising.

Why would you feel sorry for sony, it's not like the playstation brand or blu ray movies/games are going to vanish tomorrow, sony will continue to make money as long as br movies and ps3 games ect continue to sell.

kreate2824d ago

@madjedi

yea ur absolutely right.
but im talking about their gaming division.

and sony did get hit with the recession and closed down a few factories. re-structured the company. so did microsoft to be fair.

but their gaming division has still lost money and hasnt gained it back yet. probably within the next 2 years they should recoup all the cash they put into it and start banking. but until than... i still feel bit sorry for them.

i mean.. i'll try to support'em all the way cuz they're the only one who is really catering to the core gamers.

and for some reason.. here in america. people just hate the ps3.

they use all sorts of propaganda. from gaming magazines listing multiplat games and only show the xbox logo. check this site out.
there's news of a multiplat game and the tag i see shows xbox360.

gamestop shows many ads of sales and it shows only the xbox logo. and in tiny words.. it say
'also on ps3'.

although this isnt always the case, the situation is generally in favor of the xbox360.
game companies are scared of microsoft so they cant even come out and outwardly speak against the xbox either.

microsoft holds a lot of power in the american industry. its just how it is.

and that's why the xbox is out-selling the ps3 in america while every other country in the world buys the ps3.

malandra2824d ago

PS3 total sales 47.9 million in 4 years
360 total sales 50.7 million in 5 years

PS3 average is 12 million a year
360 average is 10 million a year

and even with Kinect and its 500 million ad campaign PS3 outsold the 360 last year including the holiday season

so by late 2011 or early 2012 PS3 will be ahead, and that's a long time before the next generation arrives, so PS3 will have plenty of time to strech the gap

El_Colombiano2824d ago

Class. With Sony, it's all about the class.

ChristianGamer2824d ago

Microsoft say they want to profit: boo! Greedy money hungry SOB's!
Sony say they want to profit: You stay classy SONY.
*blind fanboyism facepalm*

another_jackhole2824d ago (Edited 2824d ago )

but they've got the best products and highest tech.

they're the best, too.

agreed MrBeatdown vvvv

MrBeatdown2824d ago (Edited 2824d ago )

Why do fanboys always take one comment from one guy, then act is if that guy is speaking for every PS3 fan and agrees with everything every PS3 fan has said previously, as if the commenter is being hypocritical?

Edit: I lol'd at the disagrees.

RememberThe3572824d ago

You know thats a great point, I do that too sometimes. It's a false way of making a weak point.

gypsygib2824d ago

There's a difference between making profit by selling great exclusive games and making profit by over-charging for everything, not releasing games and relying entirely on marketing to move systems because you believe people will buy whatever you tell them to, or tie in with celebrities.

Gamers profit too in the former (Sony), gamers gain nothing and lose in the latter (MS).

360 was great, not as much any more - but I'm still happy I have one.

GoldPS32824d ago

I have to agree but the difference is MS makes money selling some crappy products like Vista and early launched consoles. Most of Sony products are high but you are getting a quality product that will last years.

Rainstorm812824d ago

Fanboy calling out fanboyism in fanboys...

That is the meaning of a Paradox kiddies

NS2824d ago

Is not just about what they say. Its also about how they say it in which case MS indeed don't have any class.

+ Show (4) more repliesLast reply 2824d ago
SoapShoes2824d ago

Luckily they will be obtaining both goals in the near future.

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