PlayStation business swings to a £29 million loss in Q1

[mynd]

Its not MY sheet its a sheet i found online im still searching thru forbes and creditable sites for up to date figures

Sorry for the poor english I was in a rush when I wrote that, yeah I relaise you found it online. Likely "skewed" by somebody trying to make out Sony have suddenly resurected themseleves.
At the end of the day we have no idea as they decided to "go dark" by entering the murkey would of network and products division at the end of FY09

[AaronSOLDIER]

Nintendo is fighting for the hand held market against smart phones and tablets Sony would be wise to pull out and focus on cloud gaming and the PS4. Its sad because Vita is really an impressive piece of tech that fact that it has TWO joysticks is just great for gaming but too pricey for that kinda money general population would buy an iphone or galaxy phone and NO im not comparing the vita to those phones just stating at the price what people would rather spend money on.

Vita is making $100 per unit...

[Old Man Gamer]

Vita is making $100 per unit...

But they're not selling.

There is also the R&D costs to recoup, ongoing marketing costs and continued support as well as dev support. There are more to the unit cost than just the manufacturing costs.

[DeviousOne]

Sorry for the poor english I was in a rush when I wrote that, yeah I relaise you found it online. Likely "skewed" by somebody trying to make out Sony have suddenly resurected themseleves.
At the end of the day we have no idea as they decided to "go dark" by entering the murkey would of network and products division at the end of FY09

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.

[DeviousOne]

Vita is making $100 per unit...

based on research ive done your amount is somewhat right because the raw cost of manufacturing it is around give or take 159 bucks. Like old man said its not selling also keep in mind Sony has already invested in R&D into the vita and would like to recoup that money which isnt looking like they may so in that regards Sony is losing money with the vita even tho they are making profits off each unit which is great. Its honestly just a bad price point and marketing because my impression is its a portable ps3? If i already have a ps3 why would i want another one. I dont feel it has content that i cant ALREADY play on my PS3. With my 3ds i have content that i cant play on Wii Which is why i own a 3ds.

[Soldier 95B]

For the record Vita is NOT making $100 "profit" on each one sold. The Vita product will lose money for the next couple of years.

[DeviousOne]

For the record Vita is NOT making $100 "profit" on each one sold. The Vita product will lose money for the next couple of years.

http://www.gamezone.com/products/ps-...ts-159-to-make

Sony isn't losing money on the actual hardware like they were with the PS3 in 2006 they are losing money because SALES of the console are not up to what they expected. IF sales don't pick up they may never make a profit on the Vita.

[Ghost-Rhayne]

For the record Vita is NOT making $100 "profit" on each one sold. The Vita product will lose money for the next couple of years.

Source?

I read in an interview AGES ago that they built the Vita's tech to a budget, so I find it hard to believe that they are taking a loss on it. I would be interested to read otherwise though.

[Sub-stance1]

For the record Vita is NOT making $100 "profit" on each one sold. The Vita product will lose money for the next couple of years.

This is true. Maybe next year is when they will start profiting on each one sold.

[DeviousOne]

This is true. Maybe next year is when they will start profiting on each one sold.

Sony isnt losing money from units sold cause they make a profit or at the least break even with the vita. They are losing money because it isnt SELLING if they drop the price then they will be selling it at a lose at the moment they are not. Like another thread on this forum bundling is going to be the most cost effective way for them to sell more vitas

[Sub-stance1]

Sony isnt losing money from units sold cause they make a profit or at the least break even with the vita. They are losing money because it isnt SELLING if they drop the price then they will be selling it at a lose at the moment they are not. Like another thread on this forum bundling is going to be the most cost effective way for them to sell more vitas

They may make money on each game sold but not on the hardware itself. Not just yet. Their refusal to disclose any vita numbers pretty much backs this up.

[Nitey]

[DeviousOne]

They may make money on each game sold but not on the hardware itself. Not just yet. Their refusal to disclose any vita numbers pretty much backs this up.

I get that concept (razor and shaver) however what im saying Sony has to recoup the cost of R&D and Marketing for the Vita as well so the small profit and games are what is currently recouping some of that investment they are still a long way away from being profitable. If trends continue in regards to sales with the vita than they may just lose on the vita in the end

[Soldier 95B]

Source?

http://www.reuters.com/article/2011/...17797020110607

But despite the competition, Sony's Hirai said the aim is to make a profit on hardware sales of the new handheld PlayStation Vita in less than three years.

[Sub-stance1]

http://www.reuters.com/article/2011/...17797020110607

[/FONT][/COLOR]

Here is another article stating the same...

How Sony will offset loss-making Vita

http://www.eurogamer.net/articles/20...ss-making-vita

[AaronSOLDIER]

But they're not selling as well as 3DS.

Fixed, they are selling, just not as much as they could/should be or compared to 3DS, which, by the way, is actually losing money.

For the record Vita is NOT making $100 "profit" on each one sold. The Vita product will lose money for the next couple of years.

http://www.gamezone.com/products/ps-...ts-159-to-make

Sony isn't losing money on the actual hardware like they were with the PS3 in 2006 they are losing money because SALES of the console are not up to what they expected. IF sales don't pick up they may never make a profit on the Vita.

Correct. Overall the Vita hasn't offset its whole R&D and whatnot, but its still had the best launch for ANY Sony platform, selling at a profit right out of the gate.

[Soldier 95B]

Sony's Hirai said the aim is to make a profit on hardware sales of the new handheld PlayStation Vita in less than three years.

selling at a profit right out of the gate

[Old Man Gamer]

Fixed, they are selling, just not as much as they could/should be or compared to 3DS,

No, based on the various links and posts, it's just not selling well.

All companies make mistakes and there is no shame in that and that does not reflect on any individual here. It just is what it is.

[AaronSOLDIER]

[/COLOR]

/facepalm

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

The only one out of the three that needs to do some serous work is MS looking at that chart, which they have been doing well for the past 2 years.

No, based on the various links and posts, it's just not selling well.

It's selling better than the PS3 was and the PS3 is doing amazingly worldwide now, Sony have nothing to be worried about, the games will come, just like they did for the PS3.

Bottom line is that the Vita is in a better position than any previous Sony console, and yeah of course its gonna take awhile to work off that R&D, that's how it is for pretty much any product.

[Soldier 95B]

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

I see what you are saying. They are still not profiting though. They are selling the handheld for more than it costs to manufacture it though (which is what you are stating). The parts might be $100, and they sell it for $200 (or whatever). They won't make a profit until revenue exceeds expenses. If it costs me 5 cents to sell a cup of lemonade, and I sell it for 25 cents, that isn't a 20 cent profit, UNTIL I pay off my $500 building, my startups, labor, and R&D costs.

Double facepalm? did I do that right?

[radgamer420]

I see what you are saying. They are still not profiting though. They are selling the handheld for more than it costs to manufacture it though (which is what you are stating). The parts might be $100, and they sell it for $200 (or whatever). They won't make a profit until revenue exceeds expenses. If it costs me 5 cents to sell a cup of lemonade, and I sell it for 25 cents, that isn't a 20 cent profit, UNTIL I pay off my $500 building, my startups, labor, and R&D costs. Double facepalm? did I do that right?

Triple facepalm no eraseys. lol

[AaronSOLDIER]

I see what you are saying. They are still not profiting though. They are selling the handheld for more than it costs to manufacture it though (which is what you are stating). The parts might be $100, and they sell it for $200 (or whatever). They won't make a profit until revenue exceeds expenses. If it costs me 5 cents to sell a cup of lemonade, and I sell it for 25 cents, that isn't a 20 cent profit, UNTIL I pay off my $500 building, my startups, labor, and R&D costs.

Double facepalm? did I do that right?

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.

[Old Man Gamer]

/facepalm

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

The only one out of the three that needs to do some serous work is MS looking at that chart, which they have been doing well for the past 2 years.



It's selling better than the PS3 was and the PS3 is doing amazingly worldwide now, Sony have nothing to be worried about, the games will come, just like they did for the PS3.

Bottom line is that the Vita is in a better position than any previous Sony console, and yeah of course its gonna take awhile to work off that R&D, that's how it is for pretty much any product.

You're comparing a home entertainment device to a handheld game machine. I don't really think there is a strong comparison between the two.

The PS3 is a do-it-all machine designed to be the center of a home entertainment center.

The Vita is mainly a device to play games away from the home. Being in Sony's target demographic for the Vita, I just don't see the demand for it. The PS3 on the other hand has mass appeal.

To say that it's selling more in it's lifespan than the PS3 and trying to extrapolate that to coincide with PS3 sales just doesn't work.

[AaronSOLDIER]

I didn't say it would sell more in its lifetime, but you can't deny its had a much stronger launch.

[Old Man Gamer]

I didn't say it would sell more in its lifetime, but you can't deny its had a much stronger launch.

You are correct.