Sony PS3 loss 'to reach $2bn' by March

Sony's games division losses will be worse than expected and could exceed $2bn for the fiscal year ending in March, vnunet.com can reveal.

Executives told reporters and analysts in Tokyo today that they blamed a shortfall in sales of the costly PlayStation 3 video games console and the PlayStation Portable (PSP).

Sony's net profit fell more than five per cent to $1.3bn in the last three months of 2006. The games division suffered an operating loss of $455m during the quarter, a fall of almost $1bn from the previous quarter, according to Sony.

"This deterioration was primarily the result of the loss arising from the sale of the PS3 at strategic price points, as well as other charges associated with preparation for the launch of the PS3 platform," the company announced.

http://www.vnunet.com/vnunet/news/2173857/sony-loses-6bn-ps3

this is HUGE..
I hope that they will find a way to not fall in disaster
 
Wii has really put both consoles in a bind, but moreso the PS3 than the 360.

If Wii continues to be a success and goes on to dominate this gen, I hope that MS & Sony don't try to emulate the model by providing ps3.1 + remote and xb360.1 + remote. Then again I think neither would want to be left looking inept in comparison to the other.

I shudder at the thought though. :devilish:

Biggest lessons to be learned from how this gen is shaping up:

launch first = good
owning chip designs = good
affordable = good
dev tools = good
innovation = good*
 
Last edited by a moderator:
Am I missing something, or is that "news" piece just rehashed sensationalism? Seriously, what's new in there except some wild claims by some random people?


Uttar
 
Nintendo is sprinting, it won't last long the buzz is dying. My buddy at work was going to buy three Wii's for his family, but changed his mind after reading reviews.

Well see - Wii is still selling out everytime it hits shelves.

I don't see how Sony will avoid posting continuous losses in the next couple years. BOM goes down but so must their price which continues the (current) losses.

They need a Killer App asap. I hope the HS guys don't feel too much pressure.
 
Well see - Wii is still selling out everytime it hits shelves.

I don't see how Sony will avoid posting continuous losses in the next couple years. BOM goes down but so must their price which continues the (current) losses.

They need a Killer App asap. I hope the HS guys don't feel too much pressure.

Selling something as cheap as the Wii for a few months is pretty easy IMO. All consoles needs killer apps after launch, the 360 took until March 06 and the wii and PS3 are now waiting for their non-Zelda and non-RFOM games.

In the long term HDTV adopting is like wildfire right now, that only hurts the Wii (I personally know three non-tech junkies who bought 1080P LCDs in the last month). Will the controller continue to excite the pseudo-gamers and will developers make quality game and not just Far Cry or Red Steel type "look, you can aim at the TV, even know it's accuracy is poor and it hurts your arm after 10 minutes!"?

If you want cheap SD gaming pick up a GC for $50 and/or PS2/Xbox for $100 and chose from hundreds of AAA titles.
 
Well, Wii is aiming for a different demographic, and even if they dont win this gen as the top console, they certainly have won as every homes' second console, whereas the other two is fighting for the #1 spot.

So either way, its pretty much a win-win situation for them.
 
I don't see how Sony will avoid posting continuous losses in the next couple years. BOM goes down but so must their price which continues the (current) losses.
They're not married to each other. The BOM may drop by $250 within the next year, but that doesn't mean the PS3 *must* drop by that much either.

Plus I don't think this is as HUGE as the OP's making it out to be. There's a comment from some SONY exec's at the start, but the rest is filled with ANALysts wasting precious webspace!

And no, you can't compare this to the XBOX's $4bn loss - the PS3 will eventually become profitable, whereas the first XBOX venture was never gonna bounce back...but you guys already knew that, so I'll just shuddup!
 
Selling something as cheap as the Wii for a few months is pretty easy IMO. All consoles needs killer apps after launch, the 360 took until March 06 and the wii and PS3 are now waiting for their non-Zelda and non-RFOM games.

In the long term HDTV adopting is like wildfire right now, that only hurts the Wii (I personally know three non-tech junkies who bought 1080P LCDs in the last month). Will the controller continue to excite the pseudo-gamers and will developers make quality game and not just Far Cry or Red Steel type "look, you can aim at the TV, even know it's accuracy is poor and it hurts your arm after 10 minutes!"?
Pssst, here's a secret, the Wii already has a killer app, it's called Wiisports. In Japan, where there is about 1.3 million Wii units sold, over 900k copies of Wiisport has been sold separately. That's the kinda of attach rates killer apps aspire to get.

And HDTV sales aren't going to hurt the Wii as much as you think. Lots of us have HDTV's love the Wii. The sales of the Wii component cable exceeded Nintendo's stock for weeks after release. I just don't think HDTV's are the white knights some of you are expecting.
 
Selling something as cheap as the Wii for a few months is pretty easy IMO. All consoles needs killer apps after launch, the 360 took until March 06 and the wii and PS3 are now waiting for their non-Zelda and non-RFOM games.

In the long term HDTV adopting is like wildfire right now, that only hurts the Wii (I personally know three non-tech junkies who bought 1080P LCDs in the last month). Will the controller continue to excite the pseudo-gamers and will developers make quality game and not just Far Cry or Red Steel type "look, you can aim at the TV, even know it's accuracy is poor and it hurts your arm after 10 minutes!"?

If you want cheap SD gaming pick up a GC for $50 and/or PS2/Xbox for $100 and chose from hundreds of AAA titles.

All consoles need Killer apps sure, but with Sony's current financial situation combined with the high price of ps3 and their competition being able to drop price at will, they desperately need one.

Scenario 1:
ps3 stays at current price - Sony Games division loses $200/console and misses sales targets.

Scenario 2:
ps3 drops $100 - Sony Games division loses $300/console and potentially meets sales targets.

Scenario 3:
ps3 stays at current price and has the next "gta" - Sony Games division loses $200/console and potentially meets sales targets.

Scenario 4:
ps3 drops $100 and has the next "gta" - Sony Games division loses $300/console and potentially exceeds sales targets.

Wildcards:
xb360 or Wii drops $100 affecting demand/momentum of the market.
 
They're not married to each other. The BOM may drop by $250 within the next year, but that doesn't mean the PS3 *must* drop by that much either.

Agreed - they're not married. But without something to move ps3's they will continue to lag in sales. Price or Software.

If they don't have software to move the systems then they need to adjust the price.
 
Pssst, here's a secret, the Wii already has a killer app, it's called Wiisports. In Japan, where there is about 1.3 million Wii units sold, over 900k copies of Wiisport has been sold separately. That's the kinda of attach rates killer apps aspire to get.

And HDTV sales aren't going to hurt the Wii as much as you think. Lots of us have HDTV's love the Wii. The sales of the Wii component cable exceeded Nintendo's stock for weeks after release. I just don't think HDTV's are the white knights some of you are expecting.
I think the majority of people who have bought a Wii purchased it for the Wiimote - not in anticipation of the next Zelda. So naturally, they'll pick up any game that lets them explore this new gameplay system...like Wiisports. Yes, the Wii is doing great right now, but I doubt it'll be able to sustain these sort of figures for over 12 months. And it won't be because of HDTV's either. I just think this 'buzz' will pass in time, and people will just get over it.

Maybe I'm wrong, and Nintendo strike gold again like the DS. But I just don't see gamers giving up their Halo's and their MGS4's (amongst many others) for a gimm...I mean, Wiimote. Soon, the attention will shift back to 'graphics' and 'realism', and the Wii will struggle to keep up!
 
I think the majority of people who have bought a Wii purchased it for the Wiimote - not in anticipation of the next Zelda. So naturally, they'll pick up any game that lets them explore this new gameplay system...like Wiisports. Yes, the Wii is doing great right now, but I doubt it'll be able to sustain these sort of figures for over 12 months. And it won't be because of HDTV's either. I just think this 'buzz' will pass in time, and people will just get over it.

Maybe I'm wrong, and Nintendo strike gold again like the DS. But I just don't see gamers giving up their Halo's and their MGS4's (amongst many others) for a gimm...I mean, Wiimote. Soon, the attention will shift back to 'graphics' and 'realism', and the Wii will struggle to keep up!

Agreed - Wii will not replace xb360 or ps3 for hardcore gamers. But that does not mean hardcore gamers would not buy one or continue to buy quality software for the wii.

I'll get one as soon as the price is right (<$150)
 
All consoles need Killer apps sure, but with Sony's current financial situation combined with the high price of ps3 and their competition being able to drop price at will, they desperately need one.

Scenario 1:
ps3 stays at current price - Sony Games division loses $200/console and misses sales targets.

Scenario 2:
ps3 drops $100 - Sony Games division loses $300/console and potentially meets sales targets.

Scenario 3:
ps3 stays at current price and has the next "gta" - Sony Games division loses $200/console and potentially meets sales targets.

Scenario 4:
ps3 drops $100 and has the next "gta" - Sony Games division loses $300/console and potentially exceeds sales targets.

Wildcards:
xb360 or Wii drops $100 affecting demand/momentum of the market.
Don't forget about SONY's WWS. They will release the most software on the PS3 I reckon, and they have great potential for releasing killer apps - which will also benefit SONY's bottom line!
 
Sony's games division losses will be worse than expected and could exceed $2bn for the fiscal year ending in March, vnunet.com can reveal.
The games division suffered an operating loss of $455m during the quarter, a fall of almost $1bn from the previous quarter, according to Sony.
hmm ok so in the last 2 quarters sony has made a slight profit ie( ~500m - 455) i dont know what the first quarter was but i assume also a profit, now the only way it can loss more than 2 billion for the year ending march is for them to lose over 2 billion in the next quarter, pretty unlikely ild say.
MasterDisaster said:
I hope that they will find a way to not fall in disaster
um wot!!!??
 
Back
Top