Tag: sony losing money

      Playstation 3 still losing money on hardware

      February 6, 2010 /

      PS3 eating money.The Playstation 3 just reported a hell of year. Sales are up almost 50% over last year, from 4.5 million units to 6.5 million. That’s a huge jump this late in the generation, though according to the Wall Street Journal, the important numbers are on the loss chart.

      Sony’s baby is still losing six cents on every dollar of hardware it sells. That’s not as bad as it was at launch – not by a long shot – but it’s bad, again considering where we stand in the lifecycle. The company’s CFO, Nobuyuki Oneda, says he can deliver a 15 percent cost reduction, but not until March of 2011. At that point we could start to hear rumors of the next generation of consoles, not to mention the addition of expensive motion controlling hardware.

      As much progress as Sony made this year, it’s a long way from being a profitable division of the corporation as a whole.

      Source: Wall Street Journal

      News, PS3

      PS3 Slim Will Lose Money For A While

      August 26, 2009 /

      Kaz Hirai.Everyone knows the console hardware business is not the place to make money. Not at first, anyway. After the cost of the internals start to come down you might see some profit, but even then, it’s small. That model holds true for Sony’s new PS3 Slim, a leaner version of the PS3. Sony exec Kaz Hirai told the Times Online that the PS3 Slim will lose money, just like the earlier model.

      That really doesn’t come as a surprise. Sure, the technology is a few years old, but the size is not. I think anyone reading this blog knows that shrinking an existing technology is the most surefire way to increase the cost.

      Hirai’s response when questioned about profitability is certainly strange, though.

      If you’re just talking about the hardware alone, the quick answer is yes. That makes good headlines, but I don’t actually know that that’s the true nature of the business that we’re all in, whether it’s PlayStation, Xbox or the Wii. I think the better indicator is to look at the business as a whole platform, to ask: are you profitable in terms of the hardware, software and peripherals. And the answer to that question is yes on a gross profit level since the last fiscal year.

      I’m not sure when this kind of news made for a great headline, but I am writing about it, so I suppose what he says is true. I just think it’s odd that he words things like this is a new concept to anyone who would be inclined to read the article. We know that, and sometimes we read about stuff we already know.

      News, PS3

      PS3 Is 70% Cheaper To Make Than At Launch

      July 31, 2009 /

      The Playstation 3.During a conference call, Sony corporate CEO Nobuyuki Oneda said the PS3 is now some 70% cheaper to make than it was at launch. Most estimates suggest the PS3 was around $800 to build in the beginning, which puts the console at just $240 now.

      The obvious question – does this mean we’ll see price cuts some time soon? I’m inclined to say no, since Sony seems to be losing money everywhere, but that might be a great way to get a leg up on the Xbox 360. Sure, no one likes to be losing money on hardware this far into the product cycle, but imagine getting a PS3 for $250! I’d probably go buy one tomorrow out of pure disbelief, especially if it came with a decent hard drive. Microsoft’s cheapest console is so pared down I couldn’t really justify buying one.

      Sony could keep prices where they are to try to recoup some of their recent losses, but why let the world know the price has gone down so far? So we know how much is headed straight to Nobuyuki Oneda’s bonus check?

      Mobile Gaming, News, PC, PS3

      © 2026 Fearless Gamer

      Theme by Anders Noren — Up ↑