PS3 wipes out PS2 profits
- Posted August 20th, 2008 at 08:16 EDT by
- 25 Comments
It's a 10-year plan, we all know that, but the latest PlayStation 3 financial statistics make for some eyebrow-raising figures nevertheless.
Speaking at Leipzig, Shiny Entertainment's Dave Perry highlighted DFC research pointing to the fact that Sony has now lost more money manufacturing and selling the PS3 than it recouped during the five most popular years of PS2 sales.
Total loss estimates are up to USD 3 billion, with Sony unlikely to turn a profit on the manufacture of PS3 for another couple of years. Only the Wii has been able to make money out of the gate.
None of which is surprising, but the severity of the figures would suggest the necessity of a decidedly elongated hardware cycle even by Sony's standards. Expect Playstation 3.5 in 2011 then, and the PS4 in 2016.
Some would argue it's a small price to pay for a console that works for more than a couple of months at a time, of course.
- 3:22am EDT - August 20th, 2008
Does anybody know how much they are losing on each console at the moment? Production yield and costs should both be showing improvement by now. (1stttttt)
- 3:47am EDT - August 20th, 2008
Im having a hard time to believing this.. why should a guy from Shiney know anything about Sonys internal production costs, this sounds like a cry for attention
- 3:53am EDT - August 20th, 2008
- 4:01am EDT - August 20th, 2008
Holy cow!! Wiping out the PS2 profits! That's insane!
Well, at least SONY is a big company and can take a hit like that...
- 4:02am EDT - August 20th, 2008
This is all unsubstantiated.
- 4:06am EDT - August 20th, 2008
Pfffffft what a load of tosh, 3 billion USD is probably a drop in the ocean to SONY
- 4:13am EDT - August 20th, 2008
The PS3 has only begun. They will get rich(er), eventually. But maybe, if this is true, we can understand why Sony doesn't want to make another pricecut right now. :P
- 4:19am EDT - August 20th, 2008
If thats true then that is alot of money.
- 4:23am EDT - August 20th, 2008
All what this says to me is that the next Playstation console will be a long way off because they need to get profits out of this one first. Maybe SONY will end up having to support the console for 15 years not 10, which isn't a bad thing because you can do alot more with it than the PS2. There should always be more unique games to the console (PS3) than the same sort of shooters, driving and fighting games of last gen because it is capable of providing something new e.g. Little Big Planet so it could easily last longer than 10 years as long as they bring up fresh new genres of games.
- 4:38am EDT - August 20th, 2008
Rumours thats all. If it's true, then better for us gamers as Sony will have to pull out the stops and release some top notch games to recoup the wonga.
- 5:02am EDT - August 20th, 2008
"Some would argue it's a small price to pay for a console that works for more than a couple of months at a time, of course."
- 5:06am EDT - August 20th, 2008
Hopefully in the near future there would be alot of games to buy.
Increase of sells would have advantage.
- 5:12am EDT - August 20th, 2008
ps3.5? ps4? does this guy know what hes talking about? plus 3 billion probably isnt too big a loss for sony. it would be nice to see some actual figures because i dont believe him. why does he care anyway?
- 5:17am EDT - August 20th, 2008
All I can say is the is a machine of many things. You can get updates like crazy, they can give us an update every month if they wanted us to. It takes time. I do have to give Sony a big ups for not just pulling the rugs from under people that has a ps2. They are real for that. On a nother note, you have xbox........who did pull the rugs from under their fans with the first xbox. I mean as soon as the 360 was release there wasnt anymore games going out, no more live cards or nothing. And they force everyone to buy a 360, thats the only reason why the had the sells that they have right now. And it was cheap, so people wasn't going to buy a ps3 at first because of the price and about half of the fan base was saying that they will wait until they go down in price. xbox is like having a sega right now and its sad. So to all you dumb a.z.z microsoft fans who always say microsoft is better then sony....your stupid. I wouldnt support anybody who do anything like that. my son ask for a 360 (which RROD is at a 68% right now) and I told him no, if you get one it will not come in my house.
psn id: I95SOUTH <--- I will ride or die for my ps3 until the top comes off.
nqwazi | nqwazi
- 5:32am EDT - August 20th, 2008
I think that Mr Perry is just looking for attention as per usual. His simplistic point of view takes no account of software sales and now PSN sales + Blu Ray.
- 6:17am EDT - August 20th, 2008
"a small price to pay for a console that works for more than a couple of months at a time" BA-ZING! Nice jab!
But you have to consider that the PS3 was an investment to help Sony win the HD war, and in the coming years Blu-Ray is going to be a HUGE source of income for Sony. I'd consider the 3 billion a smart investment, not a loss
- 6:30am EDT - August 20th, 2008
Not as bad as Microsoft though CVG posted an article a few weeks back saying 07-08 was the first profitable year for the Xbox brand
- 6:43am EDT - August 20th, 2008
Damn, I hope that's not true. I love Sony for their Playstation systems so I'd like to see them making more money than those Wii and Xbox bastards.
Alti | alti
- 7:32am EDT - August 20th, 2008
last paragraph. burn.
- 7:32am EDT - August 20th, 2008
Wow, this really has thrown people here for a loop. PS3 has erased PS2's HARDWARE SALES.
Thank FSM that Sony's main draw of money was from the games not hardware.
This will permanently ban this user and delete all associated comments. This action is irreversible, are you SURE you want to do this?!