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Sony Has Lost More on the PS3 Than it Made on PS2

1up:

"Speaking at the Games Convention Developers Conference this afternoon, industry veteran Dave Perry (most known for his studio Shiny Entertainment and its games Enter the Matrix and Earthworm Jim), gave an overview of the games industry as he sees it today."

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sonarus3739d ago

So in other words. PS2 only made 3 billion in its entire lifetime...from hardware sales that is

I would like to see those stats

Drekken3739d ago

I dont believe this article.

chasuk083739d ago

Yeh i dont belive this one bit. Smells like bullshit if you ask me

Jamie Foxx3739d ago (Edited 3739d ago )

.. unless you bought one of those fake ps22s from china

C_SoL3739d ago

it don't matter.........

Sony knows how to feed it's customers.........

NegativeCreep4273739d ago

but besides that obvious mistake, the so-called "fact" that the PS2 has only produced a profit of 3 billion dollars in its 8 year+ lifecycle is totally ludicrous.

Is hating on the PS2 and spewing B.S. about the PS2 now the new trend of the month or what?

juuken3739d ago

I call double bullsh*t.

Lost_My_600_Dollar3739d ago (Edited 3739d ago )

PSX was Success
PS2 success
PS3 , maybe $ony in the right route or maybe not

Time will tell

@ Juuken

I agree , but at least they can hold on FF13 as a Timed exclusive

juuken3739d ago

True, but I don't think Sony could have outbid Microsoft to hold on to those exclusives.

La Chance3739d ago (Edited 3739d ago )

dont know if this guy is right or not but te PS3 is a financial flop.

Commercial succes but a financial disaster.

They might be first and stuff right now and stuff but before launch they were expecting more and faster.

They didnt and couldnt foresee the Wii's succes , they never expected the 360 to put up such a fight etc.
The CELL cost more than they thought it would , software sales were lower than expected for exclusives in 2007,japan buying far less PS3 compared to PS2 at same period etc.

But when you look at the price point theyre selling their machine at and that its outselling the 360 worldwide its a commercial succes but a fianacial "trap".

EDIT : at all those disagreeing , Im not talking about the xbox because that would be going off topic but the xbox was a finacial disaster for MSFT too.What I said was nothing bad , simply the truth.
You are going to disagree but its the truth.Alot of products are like that they sell alot but dont bring in cash, so the firm has to count on the long run.Like what MSFT did with the original xbox and Sony with the PS3.

@juuken : you know what ? Tell me where in my post Im wrong.You seem so confident.Im waiting for your answer since YOU seem to know what youre talking about.

@eagle21 : you dont have to sell the most to make money.A couple of months ago GM was selling the most cars on planet earth but werent making any money at all.Toyota use to sell less and make alot more profit than GM.

eagle213739d ago

Well if you believe that (LOL) then xbox will always be a flop for Microsoft. They will never "win" a war. :)

juuken3739d ago (Edited 3739d ago )

*stares at LaChance's comment*

...*blinks*
...*shakes head*

Um...do you know what a financial flop is LaChance? Do you have any idea what you're talking about?

Did I say that you were wrong? I just asked if you knew what you were talking about because your comment baffled me.

Jamie Foxx3739d ago (Edited 3739d ago )

sometimes you act like a rabid fanboy and sometimes you make ok comments please stop the schizophrenia,the ps3 has cost sony we can all agree on that but your forgetting the shelf life the ps3 has,sony WILL make a profit on the ps3 not just yet,hd is taking off faster than we imagined now and what better bluray player is there than the ps3?not to mention the 1st party games

never thought id do this but i just gave you a bubble even though your getting major disagrees which should be a lesson,act like a fanboy and make nonsense comments to flame and people will always see you as a fanboy,ever heard of the boy that cried wolf?

wetowel3739d ago

You gotta spend money to make money.

DaKid3739d ago

He just wants 15 more minutes of fame, lets move along and not give it to him.

LossTheEarthbreaker3739d ago (Edited 3739d ago )

@La Chance - People are disagreeing because you're saying 360 is putting up a fight, which they disagree with in terms of games even though you're talking about hardware sales.

Sony pays more to produce a PS3 than they sell it for, therefore they lose money every time they make one. Microsoft just started turning a profit and it's been like 2 and a half years.

http://blog.wired.com/games...

"Sales of Sony's PlayStation 3 have resulted in losses of $3.3 billion dollars since the system's launch, reports Forbes.

Key to the company's losses is the "strategic pricing" initiative it has adopted in an effort to catch up with Microsoft's Xbox 360, a console which hit shelves almost a year earlier.

Under this scheme, the system is sold to consumers at a loss, though the idea is that software sales and the fruits of being an eventual market leader would counteract these early-term losses."

Similar to this article from 2005:

Forbes: Xbox lost Microsoft $4 billion (and counting)

http://www.joystiq.com/2005...

"Forbes takes stock of Microsoft and asks what the behemoth is gonna do about some of its woes. The biggest problem facing Microsoft is its size. At 60,000 employees and $40 billion in revenues, the company isn't as nimble as it once was, and newer products are not yet earning the company much money. The Xbox division in particular has lost Microsoft $4 billion in four years according to Forbes.

Forbes also says that the Xbox division isn't yet in the black, but we've seen evidence to the contrary. Well, one thing's for sure, the launch of the Xbox 360 is going to cost Microsoft dearly. If the Xbox division managed to eke out a profit in a previous quarter, it's certainly not in the black now, what with the cost of hiring fly booth babes and all."

plain rice3739d ago

Sure Sony is losing out now but do you guys seriously think Sony will stop from here? They took the risk and invested heavily into the VG market this generation. The PS3 will only go up from here on out.

gambare3739d ago

But no one talks about how much money microsoft has lost with the 360, just the money lost on the replacement of the 360 that went RRoD. Full hardware replacement, warranty value, transportation, lost pieces and many other things that cost a LOT of money in every single replaced 360. And not counting the discount on the price of the original machine.

BiggDaddy3113739d ago (Edited 3739d ago )

Ok, all this article is saying is that Sony has lost 3.3 billion on hardware folks. They do not talk about how much Sony has made back from software and Blu-ray sales. They started making a profit on the PS2 hardware about 5 years ago and the money that they made from the Hardware sales of PS2 has already been gulped up. This is not the end of the world they projected this would happen.

OK so to clarify, Sony games division is not 3.3 billion in the hole right now!! They make money on their Published games (1st and 2nd Party games) and the sale of Blue-Ray. They are projected to make a profit meaning that the 3.3 billion (or whatever it is by that time) lost on console cost will be returned in software sales by next summer!

So just sim-a down-now! They are going to be fine! All the money they made on GoW and Grand Turismo and R&C etc.. is not gone now!

Sitdown3739d ago

To quote the Perry, "Sony has lost more money selling PlayStation 3s than it made selling PlayStation 2s during the entire five years of its peak. So basically, all of the money Sony made on hardware last generation"

So looking at the statement..no where did he say that the ps2 only made 3 billion during its lifetime...but he was saying 3 billion is the figure believed to be made across the ps2's 5 year peak. Now lets do some simple math, 140 million units sold in 8 years would make 17,500,000 units per year...therefore roughly 87500000 in a five year span. Now in order for Sony to have made 3 billion off a rough estimate of 87500000 ps2s they would have needed to turn a profit of $34.29. Now the only thing missing is how much sony makes off each console, and whether or not we are just talking in terms of hardware......with that said, I do not find such figures to be so hard to believe when broken down in such a manner.

One of these days people will stop going into blind rages because somebody says something against their console of choice....and perhaps open up to different possibilities.

sumfood4u3739d ago (Edited 3739d ago )

He sucks an deserves the finger from your truly!

yanikins1113739d ago

sorry are my eyes not working or did someone just have a dig at sony for losing money on new hardware? They lost 3.3 billion on developing the ps3? hell ms lost a third of that due to rrod problems. I dont get it.

BiggDaddy3113738d ago

I think some people need to get hooked on phonics. Because most of you just don't know how to read! The 3.3 billion is only in lost console sales. and the article is comparing the money that was made from PS2 hardware sales when it was sold at a profit. The PS3 may not be sold at a profit for another 2 years or ever.

If you have been following the industry we all know that in Q1 of this year sony games division made a $55-120 million dollar profit. Ok this was not do to Hardware sales! This was due to the fact that Sony sold 23 million units of SOFTWARE! That is not 1st party games guys, that is the sales of every game that came out from January to the beginning of April. Sony makes profits from 3rd party games by way of a royalty fee associated with blue-ray it is a small fee. Remember John Carmack complaining about the royalty fees associated with MS discs, that he would have to put Rage on 2 discs because of royalty fees where higher for 3 discs? Same thing with Sony ok. Please read this column again with some common sence for once.

+ Show (23) more repliesLast reply 3738d ago
militant073739d ago

wow
thats mean 7 year work of ps2 and all that sucses gona cuse of ps3 fail !, thats really sad. ifits countinue like this they will lose more than they got on PS1+PS2+PS3+PSP .

PS.MY ENGLISH S.U.C.K.S

Vicophine3739d ago

Your English is not the only thing that sucks.

Sonics0203739d ago

I wouldnt call it a failure. It has been selling pretty good recently and it is giving us some great games that you don't see anywhere else. It is also a Blu-ray player and very reliable piece of hardware. I think it is a bit harsh to call it a fail.

kazuma3739d ago (Edited 3739d ago )

1 - learn how to write, everyone else says "thank you"
2 - i lol'd @ 2.1
3 - learn ur facts first. ps2 is on it's ninth year and sold 140 million. the ps1 sold 102 million and was around for 11 years. i can pretty much say that sony made more than 3 billion in hardware + software last generation with the ps2, way way more than that. you shouldn't be worried about them.
4 - now scooping down to your level, do you know that the original xbox didn't even give ms a profit? did you know that they only made a profit on their gaming division last year? *gasp* that's like 6 years of straight loss. 4 to 5 billion losses! now add that 1 billion for extended warranty. omg!
5- please return to your 360 section to post non-quality comments.
thank you, everyone at n4g. bubye

La Chance3739d ago

I cant believe you guys are making fun of his english,its pathetic.
Alot of people on N4G arent from english speaking countries , me included but we do our best to speak in proper english.

You guys act like i dont know what.I dont know if its his english that pissed you off or if it was the content of his post.

kazuma3739d ago

if u even look at his past comments u can CLEARLY see that he can write adequate english -_-

+ Show (2) more repliesLast reply 3739d ago
silverchode3739d ago

h the title is misleading he said that the 3 billion the ps2 made in its first 5 years was spend to sell the ps3 at a lost.

TheHater3739d ago

glad you got that. It seem people are going to alter their titles just to get hits or degrees on this site.

silverchode3739d ago

xbox fanboys will be here soon.
*hides*

Lord Shuhei Yoshida3739d ago

Xbox fanboys will be here soon

*takes out rocket launcher*

juuken3739d ago

Xbox fanboys will be here soon.

*takes out bazooka*

zo6_lover273739d ago

They are already here

(look down)

He's even saying the ps2 failed

TheDeadMetalhead3739d ago

*Takes out double Sawn-Off Shotguns*

I approved this story, just so ya know. :)

AIi_The_Brit3739d ago

Xbox fanboys will be here soon..

*takes out plastic bottle filled with vinigar and soda*

wait.......

Doh!

Gam713739d ago

I have to laugh at you lttle girls.

I'm not going to comment on the story as some of the things he says don't add up and the whole loss thing was reported months ago but i will comment on the defence force above.

You all just proved what i have been saying about you ps3 fail trolls.
Any ms story whether good or bad you are immediately there in droves to attack attack attack. You know like someone whos insecure and is trying to justify their purchase.
Enjoy what you bought, you have 1 good game to play on it now i hear.
Yet when its a sony story you all actually have to line up and "wait" for the xbox fans to come on.

Just lol at you all and your double standards.
Next time you're trolling a ms thread remember how you are all on the gamer section here and i read a whole page without a hijack from xbox fans.

You're attitude actually reflects more on your choice of console than you.

+ Show (5) more repliesLast reply 3739d ago
Vicophine3739d ago

They'll make a lot of $$$ make regardless if this article is true or not on BD licensing =D

TOSgamer3739d ago

It will probably be the movie division. Even though the gaming division will take all the losses for PS3 development.

Sitdown3739d ago (Edited 3739d ago )

just like all the other companies....even Microsoft found a way to get in on the boat.

Edit The funny thing is that as I was posting, they had a answer on Jeopardy in which Microsoft was the question.

This company "zune" after digital music after going "360" for gaming.

Sonics0203739d ago

He also said that he believes PS3 will be first in Software sales at the end of the generation.

INehalemEXI3739d ago

no doubt. PS3 has looooong legs.