50°

Stringer: PS3 Dragging Profits Down

Sony boss Howard Stringer says the company will need to find profits from non-games related sectors, to offset the costs of PlayStation 3, now set to lose the firm $1.7 billion this year.

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next-gen.biz
highps36380d ago

In a way to me its nice to know they spent so much money on a console. Just hope it doesnt bankrupt them in the process.

In the long run they will be fine. The next 6 - 10 months are huge for Sony.

Hope they dont have to many hardware problems because the media would eat that up and the Ps3 would be done (even if the 360 has way more) bad ps3 news spreads way faster than bad 360 news. Took them what 6 months to admit there was a problem with the 360's, oh its only 3 - 5 %, yea sure!

Ravenator5296380d ago

M$ has been doing this since the launch of the original XBox. No big suprise to me.

Sony has borrowed a lot of money to put towards PS3, Blu-Ray, and Cell development.

When you have high production costs coupled with the fact that the company loses money on each PS3 sold, it doesn't take a genious to figure out what needs to happen.

This is why the software sales are so important!

Oh and not to mention a HUGE battery recall may not help either!

ASSASSYN 36o6380d ago

I love how you guys think this is good news. This means less money spent on the on-line network, sony branded peripheals, First party games, and any planned extra goodies. Now how great does the news sound?

Ravenator5296380d ago

No wonder you have 3 bubbles!

I am in no way defending Sony or the 360 for that matter.

I own a 360 and I am very very pleased with it!

Not to mention that I have no immediate intentions of purchasing a PS3 at this point in time.

All I was implying was that this is what M$ has been doing all along with the XBox. Now Sony has to do it!

Stop being such a fanboy and maybe you would have more bubbles!

power of Green 6380d ago (Edited 6380d ago )

MS's in a different boat.

They have the cash for their losses.

I think the point of the artical is Sony might be in a little trouble comming up with the cash to off set the losses.

It's not the same thing Sony's trying to keep it's head above water while MS knows it will loss cash to take the gaming industry and isn't really worried about cash as they are tying to take the lead. It's a wonder why you have as many bubbles as you do with that pro logic. J/K!.

Ravenator5296380d ago

Yes it is the same thing.

Sony didn't have to rely on other divisions of the company to make up for the losses in their gaming division.

M$ has had to have other divisions cover their losses since the beginning of the XBox.

It is very much the same thing.

Only now, Sony has to hope that its other divisions can cover the loss. M$ already knew that the losses would be covered. That is where the difference is.

But the process is still very much the same! No matter how you would like to spin it!

+ Show (1) more replyLast reply 6380d ago
Islandkiwi6380d ago

The problem, as power of green noted, is that's a lot of money to be losing. And if there's an unforeseen problem with the production, or manufacturing, that's a loss they're not going to be able to afford.

ApocalypseShadow6380d ago

back in the dreamcast days,ps1 and ps2,companies lose a lot of money launching a system.i remember it around 500 million or more.then you make money on software.nintendo is the only company that wants to make money on the hardware and the software.and being that wii is just a gamecube with extra features and ram,they're going to make more money again.same with ds,gameboy advance,gamecube.nintendo makes money on hardware and software.sony,being a hardware company,thinks producing more units and shrinking the tech/combining it will make it cheaper.and you make more money.it's partly true but i think nintendo's way is better.

here,read this and understand

http://technology.guardian....

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90°

10 Weirdest Video Games of All Time

Plenty of unforgettable games have completely messed up their players throughout the years, all the way back from the PS1 days to the dark recesses of the modern internet.

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culturedvultures.com
JonTheGod19h ago

Why are the Katamari games not on the list??

130°

70 percent of devs unsure of live-service games sustainability

With so many games fighting for players' attention and interest losing out over time, time sink games are at risk of eventually losing steam.

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gamedeveloper.com
thorstein1d 15h ago

It was worrisome to begin with.

It's a niche genre with only a handful of hits that can stand the test of time.

Cacabunga18h ago

I like the sound of that!! I will for sure never support these gaas games.
Sony must be shocked at gamer's reaction, making them cancel a few of these and hopefully go back to the good heavy hitters they had us used to..
now bring on that PSPro reveal and show us some SP 1st party awesomeness.

CrimsonWing691d 15h ago

What’s to be unsure of!? Look at the ratio of success to failure!

DarXyde22h ago

It's pretty ridiculous.

Imagine having a breadth of data at your disposal to see the statistically low success rate of these games, only to be laser focused on the exceptional case studies.

shinoff21831d 13h ago

Yes. Stop all the live service bs.

jznrpg1d 13h ago

Only a few will catch on. You need a perfect storm to be successful in GaaS and a bit of luck on top of that. But a potential cash cow will keep them trying and some will go out of business because of it.

MIDGETonSTILTS171d 13h ago

Helldivers 2 manages just fine…

Keep production costs low… don’t just make custscenes until the mechanics and enemies are perfected first.

Make so much content that you can drip extra content for years, and the game already feels complete without them.

Most importantly: make weapons, enemies, levels, and mechanics that will stand the test of 1000 hours. This might require more devs embracing procedurally generated leveled, which I think separates Helldivers 2 from Destiny’s repetitiveness.

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60°

The Battle Pass Is The Worst Thing To Happen To Modern Gaming

Nameer from eXputer: "Some exceptions aside, I don't think the battle pass is a net positive for gaming with how they're implemented in most live service titles."

got_dam1d 17h ago

Battle passes AND meta gaming both.

DivineHand1251d 15h ago (Edited 1d 15h ago )

I like the way Helldivers 2 does battle passes. It allows you to make purchases on each level of the battle pass and gives you the option of choosing which item to unlock first. The more purchases you make using medals the further you progress. There is no timer and you can earn medals towards purchasing stuff via personal orders and Major orders.

I haven't played much live service games that have battle passes but I remember some games that have battle passes where you progress through it linearly using an exp system. What makes it really bad is that the battle pass will have like 50 or more levels with the cooler stuff being closer to the end. They also have an in-game shop that sells exp boosters so you can reach the end of the pass before it refreshes. Everyone ilse will have to grind their way through.

lucian2291d 14h ago

battle pass in fortnite is perfect; buy one and it buys the rest for every other season as it gives you more money than the first cost. so 8.50 and season ends with you getting 13.00, it pays for the next and you have some pocket change to save up for cash shop. All of which is optional