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Sony Eyes PS3 Profitability

IGN: "PlayStation 3 has been out since 2006 and has sold millions and millions of units. Would you believe that Sony has been taking a loss on each of those systems sold?

We're only bringing this up because it looks like the losses are gong to disappear shortly. Sony Chief Financial Officer Nobuyuki Oneda told a press conference in Tokyo today that Sony has managed to get its PS3 losses down to somewhere between 10% and 20% of the system's retail price. It expects that figure to fall into the single digits before the end of the year, then turn into a profit some time during the next fiscal year. "

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uk.ps3.ign.com
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Persistantthug3276d ago (Edited 3276d ago )

Fortunately for now, the PS2's viability does help absorb losses.

But now with the new redesign and software sales for the PS3's now sizable continued growing userbase, profitability is an inevitability.
It always was, really.

RememberThe3573276d ago

This has been their model for so long and it has worked out so well that I don't see them changing it too much in the future.

Anon19743276d ago (Edited 3276d ago )

Analysts have said Microsoft loses money now that the 360 is so cheap. Microsoft has been very quiet on the issue, where Sony has always been upfront about the PS3 hardware losses.

I wonder what's really going on with the 360?

ABizzel13276d ago

So what happens when they start making money on hardware? More PS Home support, more PSN features, all PS exclusives = Uncharted 2 quality?

sikbeta3276d ago

After the last quarter financial report, PS3 is already profitable, everyone is like shocked with last lost but forget about Sony sold for 9 consecutive months the fat model at lost, then the price cut of the remaining fatties before the introduction of the Slim on September First and the decrease in the PS2 hardware + software sales related with the new Price point of the PS3 Slim and that is because of the people that want to make a big jump and go for the PS3

I'm getting tired to repeat the same all the time

Sony Profitability = More Quality Games For The Growing Fanbase

GAMERS FTW!!!

cheapndirty3275d ago

Sikbeta: You have not read the most recent report. Would you like it? I have the whole thing in pdf format. If you had read it you would see that the gaming division has posted another loss. That is not say they have not had profitable quarters. They have. That price drop is hurting them. If you guys want to help buy more software and accesories.

Darkride, I am surprised that someone that has worked in the financial markets would not know the latest on Sony. Since you are adept at reading these reports here is the link for ALL OF SONY'S REPORTS: http://www.sony.net/SonyInf...

This is not an attempt to try to undermine to quality gaming experience Sony's ps3 provides, but rather to keep the facts straight. I am astounded at how many people truly believe things that are not conclusive.

sikbeta3275d ago

You are investing time searching about news from Sony and It's profitability status, tell me you are not a fanboy /jk

You are looking as whole in that period

But the profitability trend start from now on, Profitability is already an achievement

Since the introduction of the PS3 Slim, the major issue that was the manufacturing cost is gone, even managed to reduce the cost 20% more, now every PS3 Slim sold represent profit and It will not be fully dependent on software and accessories like in the Faty Era

Maybe is really hard to see, when you look at those numbers ($), but after all that's what we call investment, is not like Nintendo that played well that ace (motion control), but even if it doesn't worked, the wii is sell at profit and is not like M$ either that lose money on the xbox division but gain profit from the windows OS and support every "in competition product" they make and lack of popularity, like zune

Sony built a new standard media format and being Part of the CORE members of the Blu-ray Disc Association will receive a % of every Blu-Ray on sale

The CELL BEA was created to become the new standard microprocessor architecture for electronic and computational devices

PS3 is expanding even more the Playstation Brand, maintaining the same loyal fanbase and adding more consumers to the Growing mass that support the Playstation Console

That's why I look at those numbers more as an investment instead of a loss and for everything you invest well, you'll make a gain in profit

GAMERS FTW!!!

cheapndirty3275d ago (Edited 3275d ago )

Ok you are entirely unwilling to acknowledge cold hard facts.

The Slim is still sold at a loss. Your 20% cost reduction does not refute the fact that Kaz and Sony themselves say the slim is sold at a loss.
Sony posted a loss in the gaming division this last quarter.

I wont even bother mention life to date losses since that is considered common knowledge.

So losses are now an investment?

OK in sikbeta fantasy land these things are true. Here in the real world they are not. Below are your thoughts on losses vs profit:
"
That's why I look at those numbers more as an investment instead of a loss and for everything you invest well, you'll make a gain in profit "

YOU may look at "those numbers more as an investment instead of a loss and for everything you invest well, you'll make a gain in profit " but EVERYONE ELSE including the SHARE HOLDERS, CEO, ANALYST'S and those WITH COMMON SENSE understand that a loss is a loss.

Your post history is filled with enough misinformation and cluelessness, not to mention you contradict your own posts that I have no choice but to write you off as another clueless fanboy. Sigh. You will probably respond with something ridiculous again..

sikbeta3275d ago

"EVERYONE ELSE including the SHARE HOLDERS, CEO, ANALYST'S and those WITH COMMON SENSE understand that a loss is a loss."

So losses are now an investment? =/= no pain, no gain

You really wish with passion Playstation quit the gaming industry, but you know is not gonna happen, came on, If M$ is in the game industry lol

You are searching in my post history lol, misinformation and cluelessness?, maybe you are right, I'm not in the front of my computer searching for bad news about other companies, my post history is filled with my opinions

You are not thinking that I support Playstation because is Playstation, right?
If you do, you are insulting me, look I'm not M$ fanboy XP

I support Sony because it give me the Games with the Quality I want to play, I give you an example, you know about Heavy Rain, If you don't search in this site, not popular articles or news as the others

Well, Heavy Rain is a complete new game and is really Mature and is not a super shooter/action/stealth games, is based on QTEs, don't like that idea really much, but I really love to play It, this game is something new and is 100 times better than Indigo Prophecy (same Devs)

But no, fanboys always say is a movie an bla bla bla, I don't care if is movie if I enjoy it, that's why I'm a GAMER

HR is something new, something that a Real Gamer will like to try and enjoy and is only on Playstation, NOW TELL ME WHAT OTHER COMPANY IS DOING THE SAME FOR GAMERS

The same goes with UC2, is an amazing GAME, but fanboys don't care, they just say teh salez and bla bla bla

I support the PS3 for the games MAN, I support Blu-ray because it can make my games more bigger than before and IT can fit 50gig of MGS4

Now, what could happen if Sony made a PS2.5, everything that I enjoy now never could happen, Sony could sell the same as the wii and the SHARE HOLDERS, CEO, ANALYST'S and those WITH COMMON SENSE could be really happy, but how the amount of consoles sold could help to improve my gaming experience, no it couldn't

You are pointing every time the LOSSES, but If Sony become profitable and recoup the money and at the same time invest in games I don't give a Damn about losses, because is supporting my gaming experience

If you see that I'm in a fantasy world, let me there, I'm never gonna leave this place to start a "Financial report fight"

If you see that I'm attacking Nintendo, I have a good reason, for me after the GC they don't produce consoles anymore

If you see that I'm attacking M$, well that's because is the same M$ XD

But there is something you cant see, I'm enjoy the games that never experimented before and can tell you as a FACT that the PS3 is my best choice

Death3275d ago

That means they haven't been profitable up to this point. They attribute the lack of profitablity to the rise in the yen and loss of the dollar, declining sales of PS2 hardware and software, and VAIO PC's not turning a profit.

As for the actual PS3 hardware, Kaz stated in an interview at the end of August that Sony takes a loss on each PS3 sold. It seems highly unlikely that the PS3 slim which Sony launched days later would make a profit when it retailed for $100 less. The slim should be cheaper to produce, but not cheap enough to off shoot over $100. I would imagine Sony looses between $40 and $60 on each unit they produce. You also have to remember retailers don't buy PS3's for $299 either. Sony sells them for less than MSRP to their retail pasrtners. That isn't a horribly bad number and is expected this early in a consoles life cycle. I believe them when they say they should start posting a profit in 2010. The reduction in loses over the past 3 years has been very significant.

As for the Xbox 360, it was rumored at the end of 2006 that the hardware was making a profit. isuppli was showing cost to be just under $325 for the 20 gig Pro. Three years later the costs have come down considerably.I will have to dig it up but a year or so ago I came across an article showing the Arcade costing $170 and the Pro at $230. Microsoft is making money on hardware. This shouldn't be a shcok to anyone ocnsidering the console has been around for 4 years now.

-Death

cheapndirty3275d ago (Edited 3275d ago )

Wow. Your response is not what I expected. As a launch 60gb owner I do not want Sony to quit the gaming business. I also want them to be profitable. My point is to keep the facts straight. There is so much misinformation and too many outspoken ,misguided people on this site.

As far as researching? Sir, I went to school to be a researcher. It is in my blood to understand HOW things work and why. I for one, want my opinions to objective and supported by plenty of facts. I am also an owner of two businesses and am fascinated with business operations as a whole. And yes, I am still a gamer in spite of this background.

Enjoy your ps3. I only wish that you bought the launch one so we would not have a slim with less features than MY launch 60gb ps3.

sikbeta3275d ago (Edited 3275d ago )

"Your response is not what I expected"

What do you expect:

"but, but I'm right because I'm a fanboy and I don't care what anyone is saying because I'm so blind enough to not see the truth"

No way, but really what do you expect, after all we are sharing opinions, not starting a WAR

"My point is too keep the facts straight"

You are doing more than that, keep repeating the word "loss" and is starting to lose sense... oh no I did it myself XP (head-explode)

I'm not saying you are not right, I'm saying is more than enough to say it one time

As for the sentence : "PS3 is already profitable" is a form to express myself as something that can be done in the future, but I state as something already done

Example:
"Bro: want to play MvC2?
me: I already won
Bro: you really think that?!
me: yes, is done
Bro: @$$ #[email protected]æßð#[email protected]½ µn!!!"

You can't take every comment so serious, If we go that way, what we have to do with the xbox fanboys lol

When I said Profitability is an achievement is because I'm thinking ahead, but not so far ahead

"I only wish that you bought the launch one so we would not have a slim with less features than MY launch 60gb ps3"

I had a Faty PS3 without BC next to my PS2 70000 whatever model, then I change for the PS2 90000 model, and now I have a PS3 slim next to the smaller PS2, with GOW collection available for PS3, the only games I want are The 2 MGS and RE4, and I'll put the PS2 in the box in a safe place next to the GC

Well, after all is really good to share opinions with someone that no respond with an insult

GAMERS FTW!!!

+ Show (8) more repliesLast reply 3275d ago
ultimolu3276d ago

*insert the PS3 is so doomed comment*

That's really good. Things are looking up for Sony.

Feral Gamer3276d ago

Sure, some d-bag always has to say "insert sonys doomed comment" looks like it's you this time. it's really getting old, just like the doomed comments themselves.

ultimolu3276d ago

Then the whole 'Sony is doomed' articles is getting old as well. This shows that Sony isn't as doomed as people made them out to be.

ReviewsArePolitics3276d ago

And another d-bag has to call out the d-bags, looks like it was your turn

evrfighter3276d ago (Edited 3276d ago )

It's been awhile since I've seen a ps3 is d00med comment from a 360 fanboy in the gamer section.

Grasping at straws

ultimolu3276d ago

evrfighter, was I referring to 360 fans? I was referring to the idiotic articles around here.

Just lol.

commodore643275d ago

no, you were not, ultimolu.

Your original post was clearly about a *sony is doomed comment*, not an article. You are just covering up now.

Feral Gamer had you pegged.
He was spot on.

Anon19743275d ago

Comment, article, what does it matter?

Despite the PS3 outselling the 360 since it's launch worldwide gaming media is constantly peppered with "Sony is doomed" comments and articles this gen when the 360 largely gets a free pass from the predominantly US games media despite glaring shortcomings, financial blunders, overpriced accessorises, shoddy hardware, etc while their bosses, CEO's of publically traded companies repeatedly run their mouths off at their competition.

Ever seen the head of Toyota hold a press conference slamming Honda? Ever see the CEO of Exxon do an interview where he takes shots a British Petroleum? Microsoft's games heads make me feel embarrassed to be a gamer. Thankfully, most of the world doesn't pay any attention to them.

Ultimolu's comments are justified because they're so often true. If they weren't there would be nothing to talk about here.

ultimolu3275d ago

Commodore, if I mentioned 360 fans, I would have said 360 fans.

Don't start, please don't. Sure, slam a disagree on my comment and give yourself an agree. You're not doing me anything.

+ Show (5) more repliesLast reply 3275d ago
Fleet Fox3276d ago

You're about 5 billion dollars too late Sony.

RememberThe3573276d ago (Edited 3276d ago )

But MS and Nintendo have gone threw very similar situations.

But when your talking about companies/subsidiaries that bring in 10 billion USD+ on bad years it is easy to see how cost cutting and/or reorganization can make those numbers turn positive over the long term.

Its_The_Truth3276d ago

where's the 360 fanboys at that post Sony's profits losses like its a big deal. Look Sony has lost money on all first launched Playstation Platforms, now this is where you fanboys are Ignorant Sony supports a console for as long as there is demand, look at the Ps2 for F**K's Sake its still selling they aint like M$ they dont abandon their products. The Original Xbox could of had more success had they not quickly dropped support to rush out one of the worst consoles on the market the XBox 360. Come on the RROD issues thats not next gen, who wants a console that will Malfunction 75% of the time. The only game I think that showed of true power of the 360 was Gears of War and maybe Fable series, but thats why i have a PS3 i haven't been let down yet. Plus i might buy a 360 (does anyone know when its gonna be $100) but thats only for Gears of War and Fable.

Hutch23553276d ago

There are hardley any ms fanboys in any of these articles. A far cry from the darkrides of the n4g world posting microsoft doomed articles even though unlike sony, they turned a 3 billion dollar profit last quarter. I think it is true that most of the idiot 360 fanboys have either been demoted to the open zone, lost all there bubbles, or have left this site. I would have to say its ps3 fans, not fanboys, 5 to 1 over 360 fans. There will always be morons that post ignorant comments about both companies, but for now I think the ps3 fans own this site.

bigrudowsky3276d ago

wow so you only play games because of graphical quality. I find that kind of sad considering not every game in the ps3's line up has the same quality graphics as killzone and uncharted 2. You must not play very many games.

n4gn4gn4gn4g3276d ago

wasn't as strong vs the Amercian Dollar...unfortunately most economists are projecting the US dollar to tank even more and this will hurt SONY's chances of turning a hardware profit in 2010 imo.

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