Sony Faces Massive PS3 Losses [Archive] - hailRedskins.com Fan Board

LATrueRedskin

05-15-2007, 07:15 PM

http://www.gamespot.com/news/6170776.html?action=convert&om_clk=latestnews&tag=latestnews;title;4

They handled the release of the Playstation 3 horribly.

Bloomberg said responses from five of the analysts pegged Sony's game group as posting a quarterly loss of 121 billion yen ($1 billion), completely wiping out expected profits from the rest of the company's divisions. The gaming business more than offset gains from Bravia HDTVs and the box office performance of Spider-Man 3, according to the report.

Wow.

CarMike

05-15-2007, 07:33 PM

Anyone think the prices will plummet now? Atleast down to what the XBox costs?

$399 is way better than $599.

ryflan47

05-15-2007, 08:34 PM

oh so greedy...

PyroGenic

05-15-2007, 09:29 PM

Anyone think the prices will plummet now? Atleast down to what the XBox costs?

$399 is way better than $599.

I'd get that... maybe.... sony is screwed.

It's funny how something that accounted for roughly 50% of their revenue is now wiping out all of their other profits though x.x

LATrueRedskin

05-15-2007, 09:48 PM

I'd get that... maybe.... sony is screwed.

It's funny how something that accounted for roughly 50% of their revenue is now wiping out all of their other profits though x.x

I think it has something to do with the price. With PS2 and XBox, it was cheap enough to own both. Now, parents and other adults simply can't afford to own both. And since 360 was out waaaaaay before PS3, people have picked up their console and aren't going to buy another one. Sony dropped the ball on this one in a monumental way; so bad that they aren't making any profits from Spider-man 3, which is amazing.

urobm

05-15-2007, 10:39 PM

Anyone think the prices will plummet now? Atleast down to what the XBox costs?

$399 is way better than $599.

I think they will go down, it seems like that might not have a choice. Maybe I should not have gotten mine so quickly.

SkinsKY

05-15-2007, 10:55 PM

I'd get that... maybe.... sony is screwed.

It's funny how something that accounted for roughly 50% of their revenue is now wiping out all of their other profits though x.x

Sony's big mistake was believing that people would spend whatever it took to get a PS3. But, with Nintendo selling the Wii so cheaply and the 360 even beats PS3 by a lot, Sony had to lose. They did manage the whole thing poorly and I can't imagine they'll ever turn a profit on it. If they're not selling them now, when they're being sold well below Sony's cost to make them, selling them for lower prices, will only increase their losses. Sony ought to just stop the PS3 and work on an economical, but solid PS4. I think this battle is pretty much over.

RedskinsVision

05-15-2007, 11:03 PM

akhhorus

05-15-2007, 11:06 PM

Sony's big mistake was believing that people would spend whatever it took to get a PS3. But, with Nintendo selling the Wii so cheaply and the 360 even beats PS3 by a lot, Sony had to lose. They did manage the whole thing poorly and I can't imagine they'll ever turn a profit on it. If they're not selling them now, when they're being sold well below Sony's cost to make them, selling them for lower prices, will only increase their losses. Sony ought to just stop the PS3 and work on an economical, but solid PS4. I think this battle is pretty much over.

Agreed. Im waiting and getting a Wii, I thought about the ps3, but its really just a shiner version of the ps2 and only really offers better graphics etc. Nintendo understood that the graphics could be great, but the gaming market was hungering for a new concept, and thats why the Wii has been so popular. Sony should take a step back and come up with a Wii-like gaming console--maybe work on a workable VR system.

BurgundyNGold

05-15-2007, 11:19 PM

Shouldn't Syllable be in this thread saying that the PS3 is losing money because it's so awesome and XBox sucks? Ah, good times, lol.

BurgundyNGold

05-15-2007, 11:21 PM

Agreed. Im waiting and getting a Wii, I thought about the ps3, but its really just a shiner version of the ps2 and only really offers better graphics etc. Nintendo understood that the graphics could be great, but the gaming market was hungering for a new concept, and thats why the Wii has been so popular. Sony should take a step back and come up with a Wii-like gaming console--maybe work on a workable VR system.
That's where they're headed. They can't compete with Nintendo on the gaming experience that way. They're slicing a the same brisket at a different angle. The problem with the VR idea is that MS will be running there with them.

SkinsKY

05-15-2007, 11:51 PM

Agreed. Im waiting and getting a Wii, I thought about the ps3, but its really just a shiner version of the ps2 and only really offers better graphics etc. Nintendo understood that the graphics could be great, but the gaming market was hungering for a new concept, and thats why the Wii has been so popular. Sony should take a step back and come up with a Wii-like gaming console--maybe work on a workable VR system.

Yeah, the Wii carved out a great niche and surprised a lot of people. The 360 had some issues, but it delivers pretty well now and for half the price. Sony tried to bring the bleeding edge into the main stream and took too big of a leap. I'm torn between getting a Wii and a 360. I like the Wii a lot, but I'm leaning 360.

BurgundyNGold

05-15-2007, 11:56 PM

Yeah, the Wii carved out a great niche and surprised a lot of people. The 360 had some issues, but it delivers pretty well now and for half the price. Sony tried to bring the bleeding edge into the main stream and took too big of a leap. I'm torn between getting a Wii and a 360. I like the Wii a lot, but I'm leaning 360.
Sony game execs should have read this book:

http://www.amazon.com/Crossing-Chasm-Geoffrey-Moore/dp/0060517123

ace4ever

05-16-2007, 12:39 AM

http://www.gamespot.com/news/6170776.html?action=convert&om_clk=latestnews&tag=latestnews;title;4

They handled the release of the Playstation 3 horribly.

Wow.
When I first found out the price, I knew this would go horribly for Sony. They might still be making money from the PS2, but the PS3 costs more to make, plus pinning their hopes on the blu-ray disc thingy will cause them to lose much more before they gain. Their limited library of games also contributes to it. Supposedly(?), the PS4 is coming out sooner rather than later. That confused me until I saw this. Good find.

Fathead

05-16-2007, 01:01 AM

Shouldn't Syllable be in this thread saying that the PS3 is losing money because it's so awesome and XBox sucks? Ah, good times, lol.

Don't forget about how the Wii is going to have massive lag issues.

The brilliant minds at Sony thought the market would be craving a $600 console that launched with only a few mediocre titles. Meanwhile Microsoft launched a year ahead and Nintendo found an entirely new audience to add.

I can lose money as well as these idiots can. Give me that job please.

SpicyMcHaggis

05-16-2007, 03:13 AM

Well, maybe making it so expensive that only 5 people on the planet can afford it wasn't the best of ideas (especially if one of those people if Bill Gates, who's definitely not gonna buy it)...

Carmelo

05-16-2007, 06:09 AM

Well, maybe making it so expensive that only 5 people on the planet can afford it wasn't the best of ideas (especially if one of those people if Bill Gates, who's definitely not gonna buy it)...
but will bringing the price down now really help or just broaden their loss of profits? They are already selling the machine at a loss in profits hoping to make it up on game sales...

This is one war they definitely just lost. Like it was said earlier, I had long since had my 360 when this came out so my need for a ps3 was nil. Also, the deciding factor that always made sure I had both machines was always grand theft auto. Plan and simple, if GTA4 was only for ps3, I'd have a ps3 before it came out. Now that it comes out on both, I couldn't care less about ps3

SpicyMcHaggis

05-16-2007, 06:19 AM

but will bringing the price down now really help or just broaden their loss of profits? They are already selling the machine at a loss in profits hoping to make it up on game sales...

This is one war they definitely just lost. Like it was said earlier, I had long since had my 360 when this came out so my need for a ps3 was nil. Also, the deciding factor that always made sure I had both machines was always grand theft auto. Plan and simple, if GTA4 was only for ps3, I'd have a ps3 before it came out. Now that it comes out on both, I couldn't care less about ps3
They are screwed. I really don't think there's anything more they can do right now except pray. Once people realized that the PS3 was just a PS2 with better graphics, they quickly decided that there were better things to do with 600 dollars than buy a PS3.

Carmelo

05-16-2007, 06:38 AM

They are screwed. I really don't think there's anything more they can do right now except pray. Once people realized that the PS3 was just a PS2 with better graphics, they quickly decided that there were better things to do with 600 dollars than buy a PS3.
That's the thing, it's NOT just a ps2 with better graphics, reason being is because ps2 had many more games and lots of exclusive titles which meant I had to have it if I wanted to play some of my favorites. Without the exclusive hits and the extensive game library, what good are they.

Some of it isn't even their fault. Microsoft deliberately went out and courted game makers to make sure that ps3 wouldn't have the exclusives that they had last time around and they also pumped out a lot more games to compete. PS3 was just unprepared for this generation of gaming. They walked into the board meeting with no pants on.

SpicyMcHaggis

05-16-2007, 06:56 AM

That's the thing, it's NOT just a ps2 with better graphics, reason being is because ps2 had many more games and lots of exclusive titles which meant I had to have it if I wanted to play some of my favorites. Without the exclusive hits and the extensive game library, what good are they.

Some of it isn't even their fault. Microsoft deliberately went out and courted game makers to make sure that ps3 wouldn't have the exclusives that they had last time around and they also pumped out a lot more games to compete. PS3 was just unprepared for this generation of gaming. They walked into the board meeting with no pants on.
Yeah, I forgot to mention that the PS2 had much more games.

Dolla Bill

05-16-2007, 07:40 AM

It has always come down to games. Look at the 360 library vs. the ps3 library. Its absolutely pathetic. Conceivably you could have a 360 and a Wii for the price of a ps3.

Carmelo

05-16-2007, 07:55 AM

It has always come down to games. Look at the 360 library vs. the ps3 library. Its absolutely pathetic. Conceivably you could have a 360 and a Wii for the price of a ps3.
and a lot more bang for your buck too

ObiWan1278

05-16-2007, 10:56 AM

I think nintendo is what is doing sony in. I do not think sony thought nintendo would compete as they have. Nintendo putting out a new concept at a cheaper price just hurt whatever momentum PS3 was going to get. I think what Nintendo has done with the Wii vs the Gamecube should be followed with anyone looking to suceed. They took something they have always been good at and realized and were okay with having to change. Now we will see if Sony has the ability to do that as well.

CarMike

05-16-2007, 02:03 PM

Keino

05-16-2007, 03:58 PM

Anyone think the prices will plummet now? Atleast down to what the XBox costs?

$399 is way better than $599.

The thing is, when you factor in the stuf that comes standard with the PS3 verse the add-ons you have to pay for on Xbox, the Price is very close to the same.

PyroGenic

05-16-2007, 07:28 PM

The thing is, when you factor in the stuf that comes standard with the PS3 verse the add-ons you have to pay for on Xbox, the Price is very close to the same.

yeah but microsoft gives you the option, which is great (kind of).

This whole "a ps3 is a ps2 with better graphics" argument is dumb to me. What else would it be? Wasn't it the same with a PSone and the Ps2? Or a Xbox and a 360? That's what games traditionally do over time, they get prettier and are able to do new things with greater detail. Nintendo went the other direction with a different way to play games and that's fine, it doesn't really appeal to me but I acknowledge why it's so popular (it's cheaper, doesn't look ugly, and is a cool new way to play a game -- which is also why the DS is a lot more popular than the PSP).

bfauble83

05-16-2007, 09:37 PM

but will bringing the price down now really help or just broaden their loss of profits? They are already selling the machine at a loss in profits hoping to make it up on game sales...

This is one war they definitely just lost. Like it was said earlier, I had long since had my 360 when this came out so my need for a ps3 was nil. Also, the deciding factor that always made sure I had both machines was always grand theft auto. Plan and simple, if GTA4 was only for ps3, I'd have a ps3 before it came out. Now that it comes out on both, I couldn't care less about ps3

Yup, I would have a PS3 if it were the only way to get GTA4...but now I'll either get it on wii...or get a 360.

PyroGenic

05-16-2007, 09:47 PM

Yup, I would have a PS3 if it were the only way to get GTA4...but now I'll either get it on wii...or get a 360.

its not coming out for the wii... congratulations on your new 360 :D

don't get the core model

urobm

05-16-2007, 09:54 PM

When I first found out the price, I knew this would go horribly for Sony. They might still be making money from the PS2, but the PS3 costs more to make, plus pinning their hopes on the blu-ray disc thingy will cause them to lose much more before they gain. Their limited library of games also contributes to it. Supposedly(?), the PS4 is coming out sooner rather than later. That confused me until I saw this. Good find.

Thats an important point, as far as their limited library of games. I expected big things out of the PS3 and eventhough the graphics are pretty nice, its definately isnt a must buy. Im not going to say I shouldnt have purchased it, but as a PS lover, this system is much more hype than promise. Its still baffling to me that at $600 for the system, they dont make enough games to satisfy the user. I know I waited forever for them to release the College 2k7, and the only thing that made me feel a bit better about the wait is that the game is pretty good. All in all Sony has to get on the ball.

PyroGenic

05-16-2007, 10:10 PM

Thats an important point, as far as their limited library of games. I expected big things out of the PS3 and eventhough the graphics are pretty nice, its definately isnt a must buy. Im not going to say I shouldnt have purchased it, but as a PS lover, this system is much more hype than promise. Its still baffling to me that at $600 for the system, they dont make enough games to satisfy the user. I know I waited forever for them to release the College 2k7, and the only thing that made me feel a bit better about the wait is that the game is pretty good. All in all Sony has to get on the ball.

I think it has more games than the wii... consoles can't come out with a bajillion games when they first launch, its never gonna happen. Even though everybody is always complaining about the # of games, it should be the quality that they're worried about. The only game for the 360 I still own is fight night. Gears of war (which is great if you've never seen it before) had its moments but it got boring and nextgen madden sucks hard. Just because the 360 has a larger library doesn't necessarily mean that its better --- even most of the 360's launch titles are glimmering piles of crap (Perfect Dark... i hate that game). All I'm really looking forward to is Halo 3 and GTA4... I don't think I'm tempted to buy anything else. Also take into account that M$' platinum series isn't exactly cheap, hopefully when sony brings back the greatest hits it'll drive down the cost of games.

That being said, if God of War comes out on the Ps3 I'm gonna seriously consider getting it, hopefully the Ps3 will be cheaper by then ... and they'll have fixed the controllers :D

Carmelo

05-16-2007, 11:33 PM

I think it has more games than the wii... consoles can't come out with a bajillion games when they first launch, its never gonna happen. Even though everybody is always complaining about the # of games, it should be the quality that they're worried about. The only game for the 360 I still own is fight night. Gears of war (which is great if you've never seen it before) had its moments but it got boring and nextgen madden sucks hard. Just because the 360 has a larger library doesn't necessarily mean that its better --- even most of the 360's launch titles are glimmering piles of crap (Perfect Dark... i hate that game). All I'm really looking forward to is Halo 3 and GTA4... I don't think I'm tempted to buy anything else. Also take into account that M$' platinum series isn't exactly cheap, hopefully when sony brings back the greatest hits it'll drive down the cost of games.

That being said, if God of War comes out on the Ps3 I'm gonna seriously consider getting it, hopefully the Ps3 will be cheaper by then ... and they'll have fixed the controllers :D
Did you play gears online often? I found that I built up a good set of friends and that game never got old for me... in the rare occasion I got tired of it, there was always some arcade game that would gain my attention.

PyroGenic

05-16-2007, 11:36 PM

Did you play gears online often? I found that I built up a good set of friends and that game never got old for me... in the rare occasion I got tired of it, there was always some arcade game that would gain my attention.

I did after you and I think some other person was raving how fun it was. It just didn't suit me I guess

bfauble83

05-17-2007, 08:00 AM

its not coming out for the wii... congratulations on your new 360 :D

don't get the core model

I thought i read that it was coming out for wii, but i wasn't sure. So, yeah I guess I'll be getting a 360 next fall...I'd love to see a price drop in the meantime...

MEOWMIX

07-06-2007, 03:50 AM

I don't play much anymore but I had the PS2 which I traded in and bought a 360. I was thinking of buying the PS3 but the price absolutely turned me off. So I'll stick with the 360 and have been trying to buy the Wii for my neice and nephew. Forget the PS3. Unless they trim their price down to match xbox.

Good idea..My ps3 is just a dust collector unless i am watching blu ray movies.Other than that its pointless...I have a few games for it but the 360 just owns in available games..Plus i like the achievements that the 360 offers.But the sad part is that i mainly bought the ps3 for socom 4...So when that game ever comes out my ps3 will be for that and blu rays...

Carmelo

07-06-2007, 06:28 AM

Good idea..My ps3 is just a dust collector unless i am watching blu ray movies.Other than that its pointless...I have a few games for it but the 360 just owns in available games..Plus i like the achievements that the 360 offers.But the sad part is that i mainly bought the ps3 for socom 4...So when that game ever comes out my ps3 will be for that and blu rays...
yeah, my friend just mentioned the other day how upset he was that his ps3 turned into a very expensive dvd player.

MEOWMIX

07-06-2007, 06:36 AM

yeah, my friend just mentioned the other day how upset he was that his ps3 turned into a very expensive dvd player.

In due time the ps3 will be putting out exclusive titles and be worth it.Also the blu ray player is top notch!But for now its not much a=of a gaming machine but it does look pretty:devil2:

Carmelo

07-06-2007, 06:48 AM

In due time the ps3 will be putting out exclusive titles and be worth it.Also the blu ray player is top notch!But for now its not much a=of a gaming machine but it does look pretty:devil2:
Once I heard that grand theft auto 4 would be on the 360, my need for a ps3 vanished.

smoak

07-06-2007, 07:01 AM

I'm surprised Nintendo is doing as well as they are. I don't know about you guys, but I used to laugh at people for owning a Nintendo. lol

Yeah, they really fell behind after NES, but they had their loyal fans and IMO came storming back with the Wii... They managed to open up the market a little more to include more than hardcore gamers.

Carmelo

07-06-2007, 07:17 AM

Yeah, they really fell behind after NES, but they had their loyal fans and IMO came storming back with the Wii... They managed to open up the market a little more to include more than hardcore gamers.

I think that's the key. Their platform crosses borders and grabs at the casual gamer and kids. Those that have a problem with fps, using the two joysticks simultaneously are at ease playing tennis with a bunch of friends in a party setting.

MEOWMIX

07-06-2007, 07:34 AM

Once I heard that grand theft auto 4 would be on the 360, my need for a ps3 vanished.

But not that it really matter but when games are cross platform the ps3 version may have extra content than the 360 version..or vice versa.As for madden i have it on the 360,ps3, and the Wii...only becaause i like to own the noobs on both XBL and ps3 online...but the Wii madden is just fun...

PyroGenic

07-06-2007, 07:46 AM

But not that it really matter but when games are cross platform the ps3 version may have extra content than the 360 version..or vice versa.As for madden i have it on the 360,ps3, and the Wii...only becaause i like to own the noobs on both XBL and ps3 online...but the Wii madden is just fun...

so far, 360 users are being charged for newer content while the ps3 owners dont.

bfauble83

07-06-2007, 07:51 AM

The PS3 is going to drop $100 in price...

http://www.cheapassgamer.com/forums/showthread.php?t=143618

MEOWMIX

07-06-2007, 07:55 AM

so far, 360 users are being charged for newer content while the ps3 owners dont.

in the ps3 store is where u buy the extra downloadable content...But when i say extras on one playform and not the others that can range from different levels to anything else...The playstation network is terrible due to 3 reason..
1) Its free
2)its new
3)online servers are shotty
With free online services like the playstation network u have SOOOOO much more cheating..glitches out the you know what!
With XBL there is not anywhere near that amount of cheating going on like the playstation network.
But what content does the ps3 have on madden that the 360 charges for?I will check into that one..

Torresa

07-06-2007, 09:13 AM

The PS3 is going to drop $100 in price...

http://www.cheapassgamer.com/forums/showthread.php?t=143618

I heard about that, from same site. No other site I seen picked it up like IGN or 1up yet. May just be rumored? Something like that would be big new. I think maybe they are announcing it at E3, just a guess. I don't think 360 will drop now since Halo3 is coming out. People will buy the system just for that game. after that game is release, closer to x-mas i see M$ dropping their prices. This whole 3 year warranty thing is good move by M$ but really costing them.

MEOWMIX

07-06-2007, 09:19 AM

I read awhile back that the price will drop due to sony is going to stop putting the emotion chip in the console.The european ps3's are being produced with out the emotion chip.Just for those that dont know what the emotion chip is,its the thing that allows you to play your ps2 and ps1 games on your ps3.Which wouldnt bother me due to having a next gen console and really not wanting to go back to the ps2 games.Which i was a HUGE fan of socom but i wont pplay it until it comes out on the ps3..which was the main reason i bought the ps3, was just for that game.