PlayStation business swings to a £29 million loss in Q1

[mynd]

While the numbers may or may not be exact the pattern would be correct cause we all know the PS3 became profitable in 2010 for sony and the chart shows that. However its hard to find EXACT numbers when sony reports everything together like they have recently done. All i can ever find is full company reports nothing that breaks down everything dept by dept.

I dont think anyone doubts they turned the business around, breaking even on the console is not the same as breaking even in the department.
The PS3 could be making $50 on each one sold, but if your costs are higher then that, then your still struggling.
40-50 million a 1/4 sure I can see Sony doing that with the odd loss here and their.
And I think the current figures show us that.

Yeah I already said, I see what you're saying, no need to keep repeating yourself. Like I said, EVERYTHING has R&D, doesn't change the fact that Vita is in making money off the hardware which is better than their usual HW loss but make it back on SW strategy.

I hope you don't major in business, You are so wrong its not funny.

If Sony say we aim to make profit ,means they aren't.

What your trying to twist this is into ROI, which this is not.
If it was ROI, they would say ROI, but they don't.

You cant have your cake and eat it too.

You say "Sony make a profit off the PS3".
Going by your criteria they never will, because they lost billions and will never make it back.

When Sony says the aim is to make a profit on hardware sales of the new handheld PlayStation Vita in less than three years.
Do they mention software sells, do they mention overall investment?

No they are specifically talking about the hardware.

They will take any money hardware and software and offset it against their investment into it long-term.

/facepalm

They are profiting off it but overall its investment is still in the red. We are both correct.

There is nothing anywhere to back up your claims what-so-ever.
If you can find the phrase return on investment then you might be onto something.

[AaronSOLDIER]

In that case, MS isn't making a profit either.

[Sub-stance1]

In that case, MS isn't making a profit either.

I think they are making a profit on xbox as well as Kinect. Its one of the reasons why this gen is lasting so long.

[radgamer420]

I think they are making a profit on xbox as well as Kinect. Its one of the reasons why this gen gen is lasting so long.

gen gen? lol

[Sub-stance1]

gen gen? lol

oh crap...lol

[TGO]

Kinda weird seeing a 29mill lost, its usually 900mill or 500mill
29mill? I mean what is that? Someones music video, a advertising campaign for the new bond film? Thou advertising campaigns do seem a waste of money for Sony, you hear about these 25mill marketing campaign and we never hear or see them, just money down the drain
Still a lost thou, and we all hate them don't we

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[AaronSOLDIER]

I think they are making a profit on xbox as well as Kinect. Its one of the reasons why this gen is lasting so long.

Sony was profiting until this quarter then, can't have it both ways

[mynd]

In that case, MS isn't making a profit either.

On your basis, correct.
Or course that's not how business works.
Any loss's in a year are written down at the end of the fiscal year.
Every year is a "clean slate".

The only things that accrue are assets, those assets do include fiscal bank balance of course.
That's also why things like Gakai acquisition is not an "expense" and is not written into the profit or losses of a product. It's merely money transferred from "bank" balance to "assets" balance.

Changes in asset balance are what they call "write offs, or written down assets".

i.e. if next year Gakai was valued at 50 million less, then that get written down and adjusted on the balance sheet and adjusted on the profit or loss sheet, ut simply purchasing a product does not count as an expense.
Expenses are only things that have no fiscal value after you've spent the money. That's why even inventory is written into profit and loss.

eg, You purchase $1 million in parts to make 5 million consoles, but you manufacture only 2.5 million, you don't write off the million dollars as an expense, it split 500k as Cost of goods sold, and 500k as inventory.

And for the record, I did 5 years of accounting, 3 at school, 2 at university...but don't worry I got better.

Sony was profiting until this quarter then, can't have it both ways

We have no idea, outside of the 1/4 before which they have put in for comparison.I'd love to know where you guys get your figures from.

There seems to be this belief that they were making money in game, but we have no idea, because they hid it from us since FY 09.

[Sub-stance1]

On your basis, correct.
Or course that's not how business works.
Any loss's in a year are written down at the end of the fiscal year.
Every year is a "clean slate".

The only things that accrue are assets, those assets do include fiscal bank balance of course.
That's also why things like Gakai acquisition is not an "expense" and is not written into the profit or losses of a product. It's merely money transferred from "bank" balance to "assets" balance.

Changes in asset balance are what they call "write offs, or written down assets".

i.e. if next year Gakai was valued at 50 million less, then that get written down and adjusted on the balance sheet and adjusted on the profit or loss sheet, ut simply purchasing a product does not count as an expense.
Expenses are only things that have no fiscal value after you've spent the money. That's why even inventory is written into profit and loss.

eg, You purchase $1 million in parts to make 5 million consoles, but you manufacture only 2.5 million, you don't write off the million dollars as an expense, it split 500k as Cost of goods sold, and 500k as inventory.

And for the record, I did 5 years of accounting, 3 at school, 2 at university...but don't worry I got better.



We have no idea, outside of the 1/4 before which they have put in for comparison.I'd love to know where you guys get your figures from.

There seems to be this belief that they were making money in game, but we have no idea, because they hid it from us since FY 09.

o.k., now that you've broken it down I understand a little better how all this works. It also explains how MS makes all those huge purchases and still post profits. I didn't think sony's losses had much to do with Gaikai. It just didn't make any sense, especially since that purchase didn't even happen til after the first physical quarter. I really don't see why some are just denying what is right in front of their face. The way i see it, Sony is doing a lot better than they were a few years ago.

[mynd]

o.k., now that you've broken it down I understand a little better how all this works. It also explains how MS makes all those huge purchases and still post profits. I didn't think sony's losses had much to do with Gaikai. It just didn't make any sense, especially since that purchase didn't even happen til after the first physical quarter. I really don't see why some are just denying what is right in front of their face. The way i see it, Sony is doing a lot better than they were a few years ago.

We really dont know, because we havent seen anything more than 2 results, one a slight profit, one a slight loss, but I think we would all be surprised if it didnt stay more often in the black, than in the red, and certinaly I dont think anyone expects 500 million loss's like we used to get.

[Soldier 95B]

http://www.gamasutra.com/view/news/3..._Year_2011.php

[Sub-stance1]

http://www.gamasutra.com/view/news/3..._Year_2011.php

A year before that they posted 4.5 billion in profit and 16.4 billion in revenue. This was from their entire brand though.

http://www.engadget.com/2010/07/22/m...ase-over-last/

[mynd]

http://www.gamasutra.com/view/news/3..._Year_2011.php

Oh MS's ED division hasn't made a fiscal year loss for years. 07 in fact.

[The_Mack_Attack]

In the recent EA earnings call, it showed that PC made more for the publisher than PS3, Sony are going through rough times! But hey they have God of War and the last of us on the agenda, they will make a lot of money for the company.

[Sub-stance1]

In the recent EA earnings call, it showed that PC made more for the publisher than PS3, Sony are going through rough times! But hey they have God of War and the last of us on the agenda, they will make a lot of money for the company.

Yea, Sony should do well with those releases next year. I plan on buying both of those.

[DeviousOne]

MS has to be making a profit on the Xbox360 by now. I dont think they've lost anything in the past 2 years and they do have majority market share in the US

[mynd]

MS has to be making a profit on the Xbox360 by now. I dont think they've lost anything in the past 2 years and they do have majority market share in the US

They have been making profit on the 360 since 2008.
They have had the odd 1/4 loss, but its been due to things like Zune failures, or even the latest one, which was to do with paying Nokia a huge sum of money.

Cant be forgotten that Sony support an entire network structure for free.

[Sub-stance1]

They have been making profit on the 360 since 2008.
They have had the odd 1/4 loss, but its been due to things like Zune failures, or even the latest one, which was to do with paying Nokia a huge sum of money.

Cant be forgotten that Sony support an entire network structure for free.

2008? Has it really been that long? That explains why Don Mattrick is always smiling like a cheshire cat every time you see him....lol

[radgamer420]

In the recent EA earnings call, it showed that PC made more for the publisher than PS3, Sony are going through rough times! But hey they have God of War and the last of us on the agenda, they will make a lot of money for the company.

I'm buying both of those too.

[TDbank24]

When compared to the xbox360 only behind 3 or 4 million when microsoft had a YEAR head start is impressive....

However when you compare it to other Playstation Consoles

ps1: 100 Million
ps2: 150+ million
PS3: 64+ million

Its not meeting the bar previous playstation consoles have set. I firmly believe this has to do with the ONE year start microsoft had on ps3. If they were released at the same time it be a different outcome however in that first year the 360 established itself in the market and ran. The Problem is with PS3 vs xbox360 its MOSTLY your a PS3 guy or Xbox360 guy while YES some own both its in the minority population of gamers.

You have 2 consoles going after the same gamer now that microsoft is seen as a Market leader its going to continue to be an uphill battle for the playstation brand

You're comparing life time sales of the PS1 and the PS2 to the current PS3 sales. Once it's all said and done the PS3 will top the sales of its predecessors. Sony has never had the cheapest console this generation. Once the price drops everyone is going to buy a PS3.

[Sub-stance1]

You're comparing life time sales of the PS1 and the PS2 to the current PS3 sales. Once it's all said and done the PS3 will top the sales of its predecessors. Sony has never had the cheapest console this generation. Once the price drops everyone is going to buy a PS3.

It really doesn't matter because we play games, not sales.

[TGO]

It really doesn't matter because we play games, not sales.

Indeed, but you practice what you preach?

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[Nitey]

[AaronSOLDIER]

You're comparing life time sales of the PS1 and the PS2 to the current PS3 sales. Once it's all said and done the PS3 will top the sales of its predecessors. Sony has never had the cheapest console this generation. Once the price drops everyone is going to buy a PS3.

It'll top the PS1 but I doubt the PS2.

[Sub-stance1]

Indeed, but you practice what you preach?

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lol...well, someone was gonna say it anyway so I just put it out there.