Why Sony, and the PlayStation brand, could be in more trouble than you think

Ben Kuchera of PAR writes: "The video game industry is competitive, and you often have to be willing to lose vast amounts of money before you begin to turn a profit. Sony, Microsoft, and Nintendo all have different strategies to deal with this reality, but Sony is in a uniquely poor position heading into this holiday season and may have already all but given up on the PlayStation 3. Of the three companies that are creating and marketing gaming consoles, Sony has the most challenges heading into the next generation.

Let’s dive into what Sony has to overcome in order to gain dominance in 2013."

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yesmynameissumo2217d ago

This dude really bugs me. Somehow, he's a business analyst. Only problem is he's not objective in the slightest (never mind not qualified either). It's doom and gloom. It's Sony spin. It's "Games perform better on Microsoft hardware". 2008. I wish more of the "journalists" would step into 2012 and report accordingly. Somehow, the opinion of a disgruntled ex-employee is news worthy. A $269 PS3 bundle isn't priced to compete with a 8GB, $300 Wii U or $400 360 Halo 4 bundle. Wha?! Ben, gimme the crystal ball you're looking into so I could pull the PowerBall numbers.

iamnsuperman2217d ago (Edited 2217d ago )

Your avatar compliments this comment very well. I agree with you. Problem with gaming journalist is they think they are very knowledgeable about everything gaming related with out being qualified in a certain field. For instance in actual journalism the journalist has a background in business if they are reporting on business related stuff

scotchmouth2217d ago

Recycled headline. Recycled logic

Hatsune-Miku2217d ago

Why Sony, and the PlayStation brand might be doing better than you think.

Strong gaming infrastructure, software, quality, core gamers,

andibandit2217d ago Show
pixelsword2217d ago

Isn't this the came site that put out all of those anti-PS3 cartoons?

I don't know if I could call them a balanced source.

DragonKnight2217d ago

Wow, as soon as I read this...

"This is spin, pure and simple. Sony has lost this generation, and there is no reason to lower the price and lose more money than necessary."

I knew that this article was going to be full of it. Immense bias exists in this article and no one should expect objectivity.

Funny, I didn't know that this gen was over. Have the big 3 all released their next gen consoles? No. Have MS and Sony announced their next gen consoles? No. So explain to me how anyone has won or lost anything in a race that isn't over.

All the people griping over Vita are hypocrites and need to shut up. Everyone clapped at the price of Vita at E3 and only started whining when Nintendo couldn't sell their marginal upgrade to the DS for the same price. Hypocrites the lot of them.

I usually would tear apart such an article but there is just too much fail to go over and I'm tired. Seriously, this is just the biggest fail of an article I've seen in awhile.

sikbeta2217d ago

I hope they (Sony) get over this, I don't want them to go down, this gen became pretty good for the simple fact that companies were "forced" to *compete* and that's a win for gamers, IF Sony really goes down, I'll have MS or Nintendo for my gaming needs, but the more companies fighthing for my bucks, the best for me.

UnwanteDreamz2217d ago

Ben Kuchera isn't qualified to forcast the future of SCE or its affiliates. Mr. Kuchera is an editor for a fancy game blog that features only stories written by him.

Amateur jurnos

2217d ago
Jazz41082217d ago

Its more of a problem with fanboys then jornalist as tbey both really dont have anything positive to say.

YodaCracker2217d ago (Edited 2217d ago )


This gen is all but over. Not much can change at this point. And the facts are:

Nintendo quadrupled GameCube sales with the Wii.
Microsoft tripled Xbox sales with the Xbox 360.
Sony halved PS2 sales with the PS3

It is very clear who the winners and loser of this gen are. Nintendo made a huge comeback while Microsoft solidified themselves as a real competitor in the industry with so much momentum going into next gen. Today, the PlayStation brand is nowhere near as powerful as it once had been. Xbox is the go-to console for the hardcore and Nintendo is reeling in all the casuals. Where does PlayStation fit in anymore? It seems Sony is going to have a real struggle in the coming years.

Ult iMate2217d ago

And that is what saddens me more in this gen: gamers shift from just playing good games to playing games of famous brands, famous franchises, big sales and big advertising campaignes. Noone care for a good game anymore, if it doesn't have any of mentioned features.

PS-Analog2217d ago

Sony have just released a re-model of the PS3, lower cost to make, kept the price pretty much the same and left themselves with room for (a) price drop(s).

I think Sony are in the best place they have been for a long time.

DragonKnight2217d ago

@Yodacracker: Nice spin there, very well done. Unfortunately the moment you posted this...

"Xbox is the go to console for the hardcore"

I decided that your comment was completely irrelevant due to your ignorance. Clearly the Xbox WAS the go to console for the hardcore, but it's not anymore. You see, your spin can try to paint this generation however you really want it to look but I can use spin to.

Nintendo quadrupled sales of the gamecube but lost 3rd party support and today the Wii is largely ignored.

MS tripled Xbox sales but cast aside the core audience that made the 360 successful in favor of following Nintendo's success and going casual. As a result they offer very little first party core exclusive titles. Titles that define a console. Instead they pay for everyone else's hard work instead of actually working on their own games. Content to squeeze out as much money as they can from a userbase that gets very little console defining experiences, MS has successfully brought their PC business model to consoles but with a far tighter grip.

PS3 sold half of PS2 but the PS brand is still the only brand to sell over 300 million consoles while only having 3 consoles from the brand. Sony have struck a successful balance of first and third party games and haven't let up in that approach. Sony started off slowly due to heavy arrogance but humbled themselves and proven they listen to what their audience, both core and casual, really want. The PS3 offers the most value for your dollar and offers so many discounts and free material it's insane.

So how do you want to define winners? Nintendo for selling just about 100 million Wii's (large part due to celebrities like Oprah) but having virtually no third party support.

MS for successfully convincing people that they have to pay twice to play online and thus making themselves a lot of money that they use to buy third party content rather than fund first party content?

Or Sony for being neck and neck with MS in console sales, offering the most console defining experiences, yet being "last" in total sales despite outselling the 360 at every opportunity globally and at a faster pace since the 360 actually had competition?

Up to you, but I think that I know what you'd say if you could. But given that you have one bubble, you can't reply.

creatchee2216d ago


You disregard his entire comment because of his claim that 360 is the go-to console for the hardcore gamer?

First, and this is just plain logic, just because you disagree with one part of somebody's argument does not mean that the entirety of that argument is negated.

Second, do you know what a hardcore gamer is? It's somebody who dedicates significant time and money to their hobby of gaming. It has ABSOLUTELY nothing to do with the type of games that they choose to play. You can be a hardcore Kinect or Move or even iOS gamer if you fit the specifications.

Finally, you cannot sweep 3rd party content under the rug as easily as you do and remain logical. The amount of 3rd party or multiplatform games outnumber console-exclusives at least by 90%. You could never play an exclusive and still be a hardcore gamer.

Exclusives and "hardcore" (as you're likely defining them) games are great, but they're not the only games worth playing or playing a great deal.

DragonKnight2216d ago

@creatchee: "You disregard his entire comment because of his claim that 360 is the go-to console for the hardcore gamer?"

I read his whole comment, but that one part of it told me what I needed to know and that was the bias he showed.

"First, and this is just plain logic, just because you disagree with one part of somebody's argument does not mean that the entirety of that argument is negated."

Never said that.

"Second, do you know what a hardcore gamer is? It's somebody who dedicates significant time and money to their hobby of gaming. It has ABSOLUTELY nothing to do with the type of games that they choose to play. You can be a hardcore Kinect or Move or even iOS gamer if you fit the specifications."

I used hardcore in the context he presented it. Blame him.

"Finally, you cannot sweep 3rd party content under the rug as easily as you do and remain logical. The amount of 3rd party or multiplatform games outnumber console-exclusives at least by 90%. You could never play an exclusive and still be a hardcore gamer.

Exclusives and "hardcore" (as you're likely defining them) games are great, but they're not the only games worth playing or playing a great deal."

Actually I can easily sweep them under the rug because 3rd party games aren't console defining experiences, which is what I said. Can you prove that MS have console defining multiplat games? No, of course you can't. If you're happy with the 360 being defined by 4 games, then by all means accept such small offerings. The rest of us will be over hear with too many console defining exclusive games.

2216d ago
DragonKnight2216d ago

@DK: The PS3 has 4 console defining franchises? LMAO! Wow, that comment right there renders everything else you say pointless. I knew you were ignorant, but I didn't know you were THAT ignorant. I could list all of the console defining experiences for the PS3, but then you wouldn't learn anything on your own. For now I'll give you ONE example and hope that you are smart enough to find the rest on your own. LittleBigPlanet.

If you want to be an MS spokesperson, just go to their site and apply for a job. Doing it for free here just makes you look foolish.

2216d ago
+ Show (15) more repliesLast reply 2216d ago
Blankman852217d ago (Edited 2217d ago )

That's Master Chief and Mario you're up against though. Those all stars are great and all, but none of them have individually sold a single game that sold over 10 million.
Master Chief has. Mario's been doing that since day one.
SONY don't have a hard hitting holiday line up as far as business is concerned.
N4G just likes to live in a bubble but in the real world not making money closes down studios even though you're "a gamer not a shareholder."
In the end, studios like Liverpool suffer and some people lose their jobs.
Remember when SONY said they'd be making 10K job cuts by next March but claimed the gaming department would not be affected? Naively, people bought this because they refused to stop living in their perfect bubble.
Same thing is gonna happen here. Bunch of people are gonna rip this guy to shreds and make a dig at gaming journalism and get massive agrees and well said's. People are gonna lull themselves into a false sense of security until the next studio shuts down. At which point we'll hear how they were not that great anyway even though the same people were probably praising them one one of their games the week prior. That's how N4G works. Now lets sit back and watch it happen

tokugawa2217d ago (Edited 2217d ago )

lol so true. bubbles up

below. snake is going to be multi from now on though

irepbtown2217d ago (Edited 2217d ago )

Master Chief and Mario sell well of course...

But so does Snake...
So does Drake...

BattleAxe2217d ago (Edited 2217d ago )

Tokugawa, so not true....bubble down for you :D

The PS3 has been the best selling home console for the lest 3 years at least. This year Sony has sold more than a million consoles over the 360. They continue to update their hardware, and they continue to offer something that the competition doesn't offer, which is a Blu Ray player and a console with the largest available HDD at 500 GB.

This holiday season they have Uncharted 3 bundled with their new PS3, and they have Playstation All Stars coming out this holiday season which should compete just fine with the WiiU and Halo4. What do Nintendo and MS have coming after the holiday season?....nothing, but the PS3 has The last of Us, God of War: Ascension and Beyond Two Souls, everything else is multi-platform. This is why Sony is outselling the competition, because they continue to invest in AAA hardcore games.

XBOX 360 is known for 3 things, Gears of War, Halo and Call of Duty. Halo will always sell well as Mario games do for Nintendo, but I think that CoD has already seen its best days, and Gears has become a tired series. Despite the fact that CoD seems to be synonymous with the 360, it sells almost as well on the PS3. Theres nothing new coming out for the 360, and thats why I believe that the number of consoles that MS will sell over the next year will look similar to how the Wii has performed over the last two years.

As for Nintendo, the Wii has taken a nose dive in the sales department, and the WiiU isn't even out yet. All the big news about the WiiU involves either old games that have been out for at least a year already on other consoles and PC or 3rd party games that will be released on all platforms.

Now, looking at the Playstation brand, I would say that it is in the best position going into the next generation. I say this because of the following reasons:

- depth of Sony's exclusive games lineup

- continuing development of AAA exclusive games on the PS3

- Acquisition of GaiKai to compete with services like Netfix

- Sony's vast ownership of intellectual property through their companies such as Sony Pictures Entertainment, Sony Music Entertainment, Sony Music Publishing and Sony Computer Entertainment

- Playstation Mobile for Tablets and Smart Phones

- The Sony Entertainment Network ecosystem which will be available through Sony Bravia TVs, PS3/PS4, PS Vita and PC through GaiKai

With all of Sony's resources and renewed leadership, you'd have to be a complete fool to say that Sony is in trouble going into the next generation. Microsoft will do well with Windows 8 and Windows Moblile, but Nintendo is a two trick pony, all they have is the WiiU and the 3Ds. If either the WiiU or 3DS under-performs, Nintendo is screwed. Nintendo is essentially bringing a knife to a gun fight for the next generation. I think Sony is probably one of the best positioned electronics/entertainment companies in the world at this point, and frankly, I believe that they will become a major challenger to Apple's market share 5 - 10 years down the road.

zebramocha2217d ago (Edited 2217d ago )

@ndivhu the studios being shut down,while sad were necessary because they weren't profitable,the 10k job cuts were done so Sony could reverse the damage the buisness model that they used to put them in their current situation and focus on emerging market and newer technologies so they could make money and halo,Mario should have no barring on the ps3 because they're exclusive and cod bo 2 seems to be the big ticket item this holiday season.

shadow27972217d ago (Edited 2217d ago )

It's kind of hard to put Gran Turismo into a fighting game...

Holiday 2012 does look relatively weak for Sony (which is the first time in a very long time, IMO), but Spring 2013 looks great for them. In fact, 2013 in general should be a very good year for the PS3.

pixelsword2217d ago (Edited 2217d ago )

"Master Chief and Mario you're up against though. Those all stars are great and all, but none of them have individually sold a single game that sold over 10 million.
Master Chief has. Mario's been doing that since day one."

Sony's exclusive games tend not to sell overly well because they always have a plethora of exclusive games at any once time; it's the blessing and the curse of the Playstation.

Microsoft really only has a handful of exclusive games and therefore more sales from those titles; so therefore they either space the games out, or you get a blowout of Halo and Gears of War.

Nintendo has more exclusive titles than Microsoft, but less than sony, but Nintendo has probably the best PR and ad team out of the three. Nintendo's Ad and PR teams know how to engineer shortages, and properly put out advertising to spur sales; they've successfully done it for years when they want to yank on peoples instinct to hoard (expect another "shortage" the first couple of years the Wii U is out too). Nintendo's think tank almost always knows how to sell a turd (so to speak), but they don't always know how to present the turd (the year when they got "executive mom" out to sell the wii along with that horrible Wii symphony game because they were trying to reach out to their newly-crafted old people + woman demographic only to discover that neither one cared about E3).

They all had really good presentations this gen, though:

Nintendo: "girls playing Wii while naked or barely clothed". For that to not be advertising would be a both a pity and a sure sign for the moral downfall of that civilization.

Microsoft: Bald guy tattoos dates on himself to schmooze with the more younger, gullible buyers. Brilliant. Microsoft should have done more stuff like that because that really made a connection. He was like that cool science teacher who did interesting stuff in class so you were both entertained and educated at the same time. The guy that came after him could not hold a candle to hims, sadly.

Sony: Kevin Butler. This was Sony's best ever ad campaign. I mean that. I hated their weird commercials, which seemed to be all of them except the Butler ones. Too bad the little kid didn't work for the PSP though; he had potential and I hope he becomes an actor because he had charisma, but he was a contrast to the Kevin Butler ads and that's why he didn't do well; if they dressed him up as a kid that wanted to be like Butler, he would have been even bigger than butler. The thing was that the kid wasn't a contrast to Butler, he was a clash; and since clashes only work if the older character wasn't liked in the first place, the kid didn't fit in.

Dee_912217d ago (Edited 2217d ago )

Lmao so 10 million is the standard now?
Do you know how many of those characters confirmed for All stars sold over 3million ?
Not to mention over 1million...
I guess you got your own definition for "hard hitting " huh?

tokugawa2217d ago

lol, you fanboys and sony soldiers can sit here all day writing walls of text. calling companies one trick ponies or saying that certain franchises are tired.

making excuses for why most sony exclusives tank "too many other exclusives" yet forgetting that cod and battlefield shift multiple millions. making lists of sonys strengths and such, in desperate attempts to make it seem like everything is rosy. when sony where in an even stronger position going into this gen.

and it still doesnt change anything in the real world outside of n4g. sony is in a whole world of trouble. their tvs and most of their electronics are way overpriced. and are nowhere the mark of quality that they once were.

google crosstalk 3d sony bravia to see the absolute rubbish tvs they knowingly put out in 2010/11. tvs not even capable of displaying 3d correctly, then telling everyone that they correspond with the specifications.. i should know, i was one of them also. and it took me over 2 months to get a refund.

sony was once a colossus, now they are barely hanging on. companies are not too big to fail! the gaming business which they dominated for 10 years is no longer theirs. tv, electronics, you name it, they have pretty much lost their dominance in everything..... it is just the idiotic fanboys on here that dont see it

+ Show (5) more repliesLast reply 2217d ago
srcBFMVBMTH2217d ago (Edited 2217d ago )




"That's Master Chief and Mario you're up against though. Those all stars are great and all, but none of them have individually sold a single game that sold over 10 million. Master Chief has. Mario's been doing that since day one."

Sony doesn't just focus on one franchise bro. It's not really all about selling 10 million units with one game to Sony. More like selling 1-5 million units with 20+ games. That way, it allows them to make profit but also discover new IP's without having to only worry about marketing with one. BTW, pretty sure that Gran Turismo sells in the 5-10 million range.

"In the end, studios like Liverpool suffer and some people lose their jobs"

Liverpool merged with Evolution.

"Remember when SONY said they'd be making 10K job cuts by next March but claimed the gaming department would not be affected? Naively, people bought this because they refused to stop living in their perfect bubble."

They bought Sucker Punch, Media Molecule, and Gaikai recently. The studios they've closed down were BigBig (A very small studio), Zipper (They've been making meh to crap games this whole gen), and Liverpool (Again, they've merged with Evolution). Not to mention they've expanded Naughty Dog and Sony Santa Monica.

Sony may not be doing too well. Moslty because of their T.V. branch. But I doubt they'd let go of the PlayStation branch that easily. Especially when it's still very profitable. lol

HarryMasonHerpderp2217d ago (Edited 2217d ago )

Exactly right.
People want to see Sony crash and burn and I don't understand why.
They make great games and seem to be the only company supporting their fanbase with their console at the moment and investing in new IPs which is the life blood of the gaming industry and great news for people who love to play games.

Seriously what is with people hating Sony this gen?

yesmynameissumo2217d ago

This really has been the theme this generation in regards to Sony and the business analysts/journalists that report their spin free, objective opinions. Since 2006, we've read similar sentiments regarding Sony as a company or the PS3 as a console. At some point, you've got to think they can do no right in the eyes of the folks paid off of site hits, not accuracy or objectivity. The mantra has gone from "The PSP is doomed!" to "The PS3 is doomed!" to "The PS Vita is doomed!" and will likely continue no matter what they do.

dubt722217d ago

@Harry. That is NOT fair. I hated Sony last generation too!

srcBFMVBMTH2217d ago


"investing in new IPs which is the life blood of the gaming industry and great news for people who love to play games."

AGREED. I freaking love when a new IP is announced.

I'm all for supporting old IP's and all. But when it's ALL YOU DO. That's when it starts to piss me off. lol

+ Show (1) more replyLast reply 2217d ago
Anon19742217d ago (Edited 2217d ago )

Yeah, I agree. Where the hell is this guy coming from? First off, "Sony has lost this generation"

Really, how do you figure? Is it in sales? Sales data shows the PS3 has been happily outselling the 360 since launch. Is it games? No again. While games like Halo/Gears tend to do amazing numbers and it's no secret that shooter games tend to perform better on the 360, the PS3 still puts up impressive figures spread across multiple genres, something the other guys seem to struggle with. I wonder if you asked him to back up that statement what he would say.

And then this nugget.
"Sony hid the sales numbers of the Vita in its financial report."

They reorganised divisions and now they're reporting differently. Suddenly this is hiding data? Grouping similar products when reporting financial data is nothing new. Is Sony also hiding sales of their high end stereo equipment because they group it in with other equipment for the purpose of earnings releases? Of course not. Now back when Microsoft started seeing year over year declines with 360 sales and they just suddenly stopped reporting sales for two quarters until they picked up - you could certainly make the case there that they were hiding data, but there was no reorganization or changes to reporting there. They simply stopped, then started again when figures improved.

"Sony is faced with no clear path to profitability in home electronics or games."
Sure they are. Stabilizing foreign exchange markets. One of the main reasons Sony has struggled these past few years has been the appreciation of the Yen versus western currencies, a fact quoted in Sony's statement used in this very article, and this is something they have zero control over unless they charge more for their products or lower production costs. S&P, which believes sluggish consumer spending will continue for the next couple of years is expecting that with the way the FX markets are currently heading, Sony should return to profitability this fiscal year with earnings per share set to increase 2067% for FY14. This guy is right, it's not all smiles and sunshine for Sony, but he seems wilfully ignorant of the reasons, instead choosing to bash on Sony's products and marketing decisions as the primary reason behind Sony's current woes.

The guy's anti-Sony slant in this article I feel really gets in the way of the points he's raising. Can you really argue the state of the PS3 without contrasting it to sales of the 360 or Wii? Do you truly believe that the Vita and 3DS are even being targeted at the same market? Given the PS3's sales the past few years, do you honestly believe there's a problem with it's price point versus it's competition? Is Halo really a hardware mover? Did 360 sales suddenly surge after Halo 3 was released?

I just feel overall the guy can't be bothered to give any credit at all to Sony. His final conclusion is that Sony really has nothing to offer. You don't get much more one sided than this and the article suffers for it. It's no different than all those "PSP is doomed, Wii-U is doomed, Blu-Ray is doomed, PS3 is doomed, Kinect is doomed, Move is doomed" articles out there. For once I'd love to see these guys not just recycle the same old, tired articles. Although, in the interest of full disclosure I honestly didn't see how Kinect had any chance at $150. I couldn't have been more wrong about that.

Edit below: Yeah, funny how we hold them responsible for the reporting they do and expect them to be objective. What's with that?

Ben_Grimm2217d ago (Edited 2217d ago )

It is funny right? Almost all these journalists saying the same thing and yet no one on this website believes it.

Ooops, let me stop, Sorry Dark I forgot, you might run and tell om me.

pixelsword2217d ago (Edited 2217d ago )

@ Ben

"All of the journalists" (and even "industry legends") said that the 360 was more powerful than the PS3, so where's that game that graphically and technically blows

Uncharted 3,
God of War 3,
Resistance 3,
Killzone 3,
or Gran Turismo 5

out of the water?

After seven years...

...still waiting.

pixelsword2217d ago

@ my comment above:

See? I get disagrees, but no list.


Prove me wrong.

Shut me up.


starchild2217d ago


Prove you wrong? It's an f-en opinion...nothing to disprove.

In my opinion, the fact that you think MGS4, Resistance 3 and Lair are graphical powerhouses proves that you don't have a freaking clue.

You console fanboys are funny. Somehow you can see huge differences between different console games, but then you turn around and say that PC gaming doesn't really offer much better graphics.

Games on the 360 and PS3 are essentially so close graphically that it isn't even worth talking about.

neogeo2217d ago

word of advice. damage control is less effective with a wall of text. People don't want to read all that crap.

Septic2217d ago


""All of the journalists" (and even "industry legends") said that the 360 was more powerful than the PS3"

Really? Where? As far as I knew, developers have always said that the 360 was easier to develop for, not necessarily more powerful. Talk about making sweeping statements (what a waste of 5 bubbles).

But lets see, by your ill-fated logic, the Xbox 1 is more powerful than the PS3! Why? 'Tenchnically', can the PS3 send voice messages? No. Then buy an Xbox 1.

Where is your list now?

king dong32216d ago (Edited 2216d ago )

yeah that pesky yen darkride.. i see it is causing the whole japanese economy to falter. i see every japanese firm struggling, and japan no longer the third biggest economy.

oh wait, that is not the case.

and honestly, so what if the ps3 sells 1 or 2 mil more a year than the 360. last gen the ps2 was selling 10 or 15 mil more units a year than the xbox!!

the sony in terms of marketshare are the biggest loser. not many people outside on n4g really care about most of their forgettable exclusives... and all the sales figures paint the picture

dont give me the "sales dont equal quality" rubbish. which is true. but sales do equal popularity, and are an indicator of what people want. and a plethora of mediocre exclusives is obviously not it

+ Show (5) more repliesLast reply 2216d ago
Ben_Grimm2217d ago

Funny how it's the jounalists fault in all these cases.

Outside_ofthe_Box2217d ago

So they're all right then?

Most of these "journalists" are nothing more than fanbloggers speculating. No different than people here at N4G that tend to act like they all have a degree in business.

shutUpAndTakeMyMoney2217d ago (Edited 2217d ago )

"Why Microsoft, and the xbox brand, could be in more trouble than you think" fixed..

Now put this on a gaming website in japan.

Ben_Grimm2217d ago


What could that possibly prove and would make anything better?

Rumplebumpkin2217d ago (Edited 2217d ago )

Why does Sony being in trouble make you happy Ben?
A major competitor like Sony leaving the game industry would be a massive blow and it would provide less competition between companies. Any gaming company having a bad time is bad for the gaming industry.
Try to grow up a bit.

fr0sty2217d ago (Edited 2217d ago )

Microsoft lost almost $6 billion on the first Xbox (and even though the 360 has turned a profit on it's own costs, they still have not made that $6b back). They're still here, and look to continue strong into the next generation. Sony hasn't lost that much on PS3, so the doom and gloom needs to quit. They're nowhere near "in trouble". Not doing well, yes, but not about to go belly up. The only obstacle Sony faces going into next gen is putting together a machine that is still powerful but won't break the bank. The reason there has been so many layoffs is Sony has always had very poor structure as a company, and now Kaz is attempting to unify things a bit, which means trimming the fat wherever they can. They may be bleeding red ink, but I don't see investors lining up to buy them out. When I hear of entire divisions (the more popular ones, like gaming, music, or movies) being put up for sale, than I'll start worrying about them.

gnothe12217d ago

frosty...first off MS didnt LOOSE 6 billion on the first xbox...that was the total invested in the system AND XBL then you say MS hasnt made that money back...theres over 60 million consoles sold..lets just say theres only 20 million paid subscribers at 6 years of XBL at 50 a year...thats 6 billion right therefore they've made that money back off XBL ALONE....does sony have that income NO!!!an it was reported that sony had lost all the profit made on the PS2 on the PS3 an blu ray...

Bon Scott2217d ago (Edited 2217d ago )

nice damage control frosty lol

and to your pal pixel sword above,you guys need to relax.
Sonyboys like pixel always pull the graphics card out.
Who cares about graphics......did you when the first xbox was WAY superior graphically to the PS2?

And the graphics are only a tad bit better on ps3 exclusives MAYBE(multiplats on 360 smoke ps3's 8 out of ten times)......and that's a tough maybe.
Are those graphics giving the playstation brand a victory this gen...?.....?
compared to the previous gens,
we can all agree on a big HELL NO!

I don't want Sony out of gaming because N4G would most likely seize to exist,
and I like to watch the SDF squirm on articles like this :)

Blankman852217d ago

Woah woah woah hold the bus there frosty! Xbox didn't lose 6 billion, forbes estimated it at 4 (3.7 actually) billion in 2005 before the 360 launched.
I think you may be confusing it with the recent 6 billion SONY lost last fiscal year.
PS3 has in fact lost more than the original xbox with a whopping $5 (4.7 actually) billion lost. Granted it is currently being recouped but it is a very slow process and they might not make it before they release the PS4.
Xbox Live alone on the other hand makes 1 (1.2 actually) billion dollars in revenue each year for Xbox 360 division, I'd say they are sitting pretty and their previous losses are but forgotten.

fr0sty2216d ago (Edited 2216d ago )

According to this business insider article, MS lost 4B, and has only made back 1B. Gnothe, you act like MS has not expenses in their business model, which is impossible. They have paid billions of dollars in advertising (one billion on kinect alone), server upkeep for XBL, and all the other operating costs they have. Profit is what counts, not total income.

The PS3 lost $4.7 billion, Xbox lost 4.2 billion (had to double check on that), as of it's first 4 years in existence. The PS3 at that point had indeed lost more, but the difference is, the system is still selling, unlike the Xbox which had it's plug pulled after 4 years on the market, and MS is still $3 billion in the hole from the first Xbox's losses. PS3 is now outselling 360, and has been for all of 2012. As such, if this trend continues, it could very well end up with a smaller overall loss than the Xbox division by the time PS3 stops being sold (look how long PS2 sold). I don't see either division getting out of the red this generation, but I do not see either of them in any kind of trouble. If Sony suffered the same losses next gen that they did this gen, then articles like this would have some sort of validity. However, no major console manufacturer (as in, has released more than one console) has EVER gone under after just one bad generation. Nintendo fell behind to last place 2 gens in a row, look at them now (however, even they posted an annual loss this generation). Sony may have had a rough generation, but they're not in any kind of trouble. You'll likely hear about a PS4 at next E3 or TGS, whether you like it or not.




+ Show (1) more replyLast reply 2216d ago
3-4-52217d ago

plenty of " Qualified " business analysts lose millions of dollars for people every year.

You can't just dismiss what he says.

Sony needs to get their S*** together.

They are a great company who has amazing first party games and gets a ton of great Jrpg's on their consoles and hand helds....

They need to find their center and re-harness their chi.

pixelsword2217d ago (Edited 2217d ago )

"You can't just dismiss what he says."

Yes I can.


Dee_912217d ago (Edited 2217d ago )

I just cant get over this paragraph

"1.This is spin, pure and simple. Sony has lost this generation, and there is no reason to lower the price and lose more money than necessary. 2.Sony’s focus is on next year, and its next generation console; they are aware that there’s little that can be done to fight off the competition this holiday season.Microsoft has offerings at a lower price backed with expected strong sales of the new Halo title, alongside a new Call of Duty game,3. a series that has historically performed much better on Microsoft hardware. 4.Sony’s own list of exclusives for the holiday season is weak at best, including a fighting game that all but demands you already be a Sony fan. 5.The next big-name Sony title is the Last of Us, which is arriving at some point in 2013."

1.Sony has lost generation. How? Its 3rd in sales? Coming out 3rd has nothing to do with this right?Please explain how it lost this generation.We all dont think biased enough to put 2 and 2 together.
2.So you mean to tell me that a new ps3 model 2 EXCLUSIVES 1 thats free cant compete with ANOTHER 360 price drop, another halo and a multiplatform game.Dont get me wrong I have nothing against the 360 but this is just pure BS.Your opinion is either poorly thought out or completely biased.
3.Performs better?Does it look better? does it have extra features?Does it some how magically play better ?No.And I hope he dont mean sales because that would be scrubbing the bottom of the barrel too hard.Im giving him the benefit of the doubt and assume he means perform in the way that performance actually matters.
4.revert back to 3.
5.So GOW ascension beyond 2 souls and Last guradian doesnt exist in his screwed up head I see.

Folks thats just 1 of 9 idiotic paragraphs from mr Ben Kuchera
Just write it off as another ps3 doom article and dont give them hits

nihonlight2217d ago

This joker and flamer who wrote this article forgot about the awesome games coming out for ps3 in 2013 and the ps4 in 2014 (ps3 support till 2015)

ALLWRONG2217d ago

"Only problem is he's not objective in the slightest (never mind not qualified either)"

and you are?

yesmynameissumo2217d ago (Edited 2217d ago )

Yes, yes I am.

Robtheghoul2217d ago Show
morkendo232217d ago (Edited 2217d ago )

Let’s dive into what Sony has to overcome in order to gain dominance in 2013."

word of advice. damage control is less effective with a wall of text.

azazel6652216d ago

Lol people like you are a joke. You disagree so you are baffled at how he's "somehow" a business analyst and say he isn't qualified for his job. He's getting paid, you are not. If you think you are more knowledgable, why don't you try to get a job in the industry then, bro?

+ Show (11) more repliesLast reply 2216d ago
DivineAssault 2217d ago

Well if they are in any trouble & keep pumping out games like they are, ill be there to buy em.. I doubt they would buy multi million dollar businesses & provide so much software if there were.. I got enough juice out of my PS3 & cant wait for the nx gen beast..

HarryMasonHerpderp2217d ago

Exactly, Sony have recently bought Gaikai for $380million.
Does that sound like something a company would do if they were in a financial crisis about to shut down all of their studios? I don't think so.

baodeus2217d ago

That is a must buy purchase from Sony, even if they don't have much money left, to stay relevant next Gen. Sony doesn't have the software capability like MS, apple, google so how do u catch up interm of online cloud service (which everyone else is moving forward too)? U think they buy it just because they have money to spend? Gaikai purchase is pretty cheap comparing to other companies purchase that goes up in to billion range, not million.

I would say Sony got a pretty good deal with that purchase though and it could really help them in the long run.

baodeus2217d ago (Edited 2217d ago )

*double post.

So did I say something negative about Sony or that they gonna die?

So Sony is already better in software front than ms, google, or apple (heck is Sony better hardware wise than apple, Samsung etcc..) going into cloud services prior to Gaikai?

Any explanation for disagreeing or was that the common syndrome on n4g?

I'm guessing it is the n4g syndrome. :D

Robtheghoul2217d ago Show
ALLWRONG2217d ago

Problem is you PS3 owners don't buy enough games. PS3 has been trailing last place in console and game sales. PS3 owners talk about PS3 exclusives then buy CoD instead. The majority of PS3's top 20 games are multiplatform, most of which all sell better on the 360. Most also look and play better as well.

I know what some of you say "this isn't 2008" but the fact is LoT and and H2H still show 360 games winning.

I know "the media is out to get Sony" even though this is the first negative article to come out all month. Front page is covered in Sony praise. All come out in defense and damage control mode when one slips through. I'm pretty sure some of you are already working a spin (check pending) and your 250th negative 360 and Wii U article.

So now that this one made it trough does that mean you guys are going to go off and spam Nintendo and Xbox news? What am I saying you guys do that anyway.

AsimLeonheart2217d ago

The WHOLE Sony Corporation is not running on the revenue from games. Sony runs several divisions including financial services, banking and insurance, manufacturing, consumer electronics, media entertainment, semiconductors, computer hardware and many others. The games division can shut down and the company will still exist just like it existed before entering the games industry. It happens sometimes. Companies have ups and downs in their life times. Just look at Apple before the launch of ipod and iphone and look at them now. Look at Kodak in the 80s and look at them now. Most recently look at Nokia less than a decade earlier and look at them now. The reason that Sony is laying off employees is because they are restructuring, trying to reduce costs and bring it back into black. It does not necessarily means that they are done for. Finally what will you get if they go bankrupt??? Why are the doom and gloom prophets insist so much that Sony is done for? There is nothing in it for you guys except for "Look, I told you so!"

ALLWRONG2217d ago

I never said Sony was done for. I don't know where you got that.

JBSleek2217d ago

Sony is in trouble that much is known as the company lacks the ability to make money, but that seems to be changing and from reports it seems the company as a whole can see profit in 2014 I do believe.

I'm a strong believer in the market will correct itself and if Sony isn't capable of being a viable company they will fall themselves.

chrisarsenalsavart2217d ago

Sony as whole needs of restructuring but nowhere near bankruptcy.
They are 3 billion down(not 6 billion like some idiot like have claimed) and their networth is estimated at 190 billion.
they could operate at loss for another ten years and still not have to file for bankruptcy .

baodeus2217d ago (Edited 2217d ago )

Were u looking at Sony back in 2000, net worth around 81 bil where as they only worth around 20 billion now.

Go here: http/ SNE+Balance+sheet&annual

math: total assets - total liabilities = Sony net worth.

2011, Sony net worth is ~30 billion, and it has been on decline still.

Where did u get 190 billion from? U mean to tell me Sony jump from 30 billion back to 190 billion in just one year while Sony still reporting lost every quarter?

7 people agree too, hahahaha it is really funny and tell u about how much people on N4g know about business.

Just for comparison

Apple (2011) net worth= 76 bil 690/share (current), but they currently worth a lot more
Ms (2012): 66 bil, 30.78/share
Google (2011): 58 bil, 749.38/share

Only fanboy would agree with number coming from someone as$ as long as it support their bais view.
Sony (2012): 25 bil, 12.36/share

smashcrashbash2217d ago

Another article trying to focus on how much trouble Sony is in. This is about thousandth article trying to say exactly what we have been hearing for months now. Sony is in financial trouble and they are attempting to fix it.But we have to hear it a thousand different ways while people on gaming sites try to pretend that they are more concerned about what is happening to Sony more then everyone else is. Sony is the one fighting to keep their company and all that they worked for and as usual people try to make it all about them. If they go down what do we lose? A few of their products? Their movies? Their music? And yet people constantly cry about how serious this is as if it is them who is going to lose if Sony dies. I don't want Sony to go down either but it is them who have the most to lose out of this, not us.So just waiting for the thousandth and one article trying to say 'Sony's in trouble'.