PS3 pushing SCE $1.71 billion into red

Gee... I wonder why.

"The point really is that PlayStation 3 is already finished and has been tested in America and has been deemed a creative success," he said. "In the end that is what counts." Just like moral victories "I think the idea of worrying about a delay in PlayStation is slightly strange to me," said Stringer. "Every complex technology runs the risk of delays." Well when you think your region is FINALLY going to be included in a launch only to be later told, 'Nope you guys are second rate after all'...are you picking up what I'm putting down, Stringer?

Big risks may make big profits, or big losses. Sony is right on the edge of a sword, one side will be lush, the other side desolate. The next few years will prove the tipping point for either side. Well with the game sector anyway, the whole corporation won't come crashing down.

I wonder what we will hear about defects after the launch.

GIJames248 - "Sony will recover but hopefully they won't dominate this generation as much as the last. Whenever a company gets that successful they get to full of themselves (Microsoft and Windows) and Sony is reaping the repercussions of that." This is the absolute truth. Nintendo even admitted they got lazy being at the top, and look at what happened to them. It's good to have a shifting market leader every few years. zicky - "reammber when dvd come out n alot of ppl didnt know about it ? now its almost a most have household appliance, same with the blu-ray once it Commercializes wait n see" The problem with that is, when DVD started to catch on you could show a VNS and DVD movie side by side to the average consumer and show them the benefits of switching to a whole new media format, and buying their favoritte movies all over again. I don't think tthe distinction is quite there between BD and DVD, and it will be harder to get that same consumer to switch to another format and having to buy all their movies AGAIN. blacktorn - sony loses 1.7 billion while microsoft lost $3+ billion.Sony wins 4+5=15. See? I can pull nubers out of my ass, too. Idiot.

dadeisvenm says, Revenue and profit are two different things last time I checked. You could have 100 million in revenue and only profit from 10 million of it.

SoralinkGS - sorry but I hope they can't make up for it. I like the PS3 and plan on getting on as I have one preordered but I just think it is time for Sony to take a failure to make them realize they are not the only system on the block and that they will not be the top system no matter how over priced they make the system with out making it any better than their competitors.

I've seen some stuff on Stringer, he might be a great CEO for Sony, but god is he in the wrong place at the wrong time, and he's pushing too hard for the PS3. If he wanted to be different, he got it, but the Wii's version will sell more, because it's different and unique, not different and odd. 1.7 billion dollars loss is a huge amount btw. Double the original projection isn't a good sign. I like Stringer, he's an american in charge of a japanese company, that's hard as hell to do, but his company has screwed up their flagship product. That's going to kill him. I haven't seen many American groups count the PS3 as a success, sorry Stringer, it's seen as a collosal failure, and what's worth, who cares if it's called a success, the only merit a game system lives or dies on is "does it make money". And considering the way you're going that's not looking likely this year or next.

Well, no wonder losses look higher so far already... Looks like Japan is 20,000 short..... ~~~~ from IGN ~~~~ October 30, 2006 - What's worse than 100,000 units at launch? How about 80,000? The Nikkei Keizai Shimbun morning edition reports today that due to component shortages, Sony will have only 80,000 units ready for the PS3's 11/11 Japanese launch. This cuts back by a fifth the initial launch target of 100,000. The lack of digits in that number is even more staggering when you consider that the PS2 sold out of nearly a million units when it launched back in March of 2000. Having lived through a few weeks of attempting to obtain a PS3 pre-order, we're not too surprised by the lowered shipping numbers. Allocations disappeared quickly at online retailers that were brave enough to start pre-order programs. The online arm of media retailer Tsutaya ran out of units in 6 minutes according to Nikkei (it felt more like 1 minute to us). Major electronics chains like Yodobashi Camera won't be taking pre-orders, Nikkei reports, so there's only one option left: line up the day before launch. Although with fewer units to go around, we're considering getting in line starting from the week prior.

losdaddie- the only one to rep himself on this news ;) share holders are insured, not so intiligent :) its all love los

Sony's Failed Life

"bossjimbob Feels good not to be a Sony shareholder right now. Sheesh." ^^ One of the most intelligent comments to this great news so far!!:D

Competition is wonder thing for us gamers. Let them duke it out and we will reap the rewards. To bad Sega couldn't hang =( but the big N, Sony and MS aren't going any where.

SCE is NOT Sony, its a tiny division of Sony. and i dont care if they profit, i just want their JRPGs.

loses are planned thats busniess dont get exited about he losses, this ish happens, if 360 drop the price, then they will Capitalise on the situation, as wii are doing

Ouch, Sony, ouch.

Well sony you should have made the PS3 come out next year.

Nobody is screwed, the profits will be made later when we all start spending our money on their new products.

"""jaredgood1 Still, the PS3 is going to be a huge shot in Sony's arm as far as Blue Ray vs. HD-DVD goes. On November 17th, Sony can easily say that there are now 400,000 more homes with Blue Ray players than there were the day before. """" ^^ Probably one of the smartest things here said all day.

that's some sad news :( being #1 in console sales and losing money, lol. looks like the Big N is the only company making money,

Feels good not to be a Sony shareholder right now. Sheesh.

ouch :( ...Guess the PS3 was bad investment ...well this kind of things happen all the time...I`m sorry Sony but I can`t buy a PS3 this year....maybe next one...too many good games to buy this year FF XII,Kingdom Hearts, PES 6,FS X uuuff nope nope I can`t help you.

WHO GIVES A DAMN,(billion dollar business looses money ), to hell with sony and microsoft ,All i have to say is , lets go playstation3.

The problem isn`t really the divisions themselves but more the different heads of SONY in general that are totally out of touch with reality. It`s not only the games but ALL of their products. Remember the day when Sony used to be THE BRAND to get, now...it`s just a brand like all others that sometimes struggles to make it in the top 10 of any given electronic product. Sad...hopefully, the shareholders will have the guts to fire the powers that be at Sony and get qualified people in touch with the realities of today.

Sony is not in a hole, OMG how you guys not look at the big picture. Second of all they say SCE (that's Sony Computer Entertainment) That's not Sony the whole company. These losses are all planned, they are investing, how are they going to make money all the time? Especially when they invest largely into their next products? MS Fanboys please leave, your going to feel not so smart when Sony is here 5 years from now and made millions-billions (or even trillions ) on the playstation (one, 2, 3, and p)

Oh well, atleast FFXIII is a third-party game :)

Still, the PS3 is going to be a huge shot in Sony's arm as far as Blue Ray vs. HD-DVD goes. On November 17th, Sony can easily say that there are now 400,000 more homes with Blue Ray players than there were the day before.

Sony will be here forever..Its just liek some people said..first party games and other things might take a pretty big hit

*Yawn* I don't care about dollars and cents from corps. Wake me up when the games hit the stores.

eeee thats not groovy :)

won't be long now. but what happened to 150 million PS2s sold? what happen to all those NDP figures of PS2s sold? 6 million 360 is better than 150 million PS2s. PS2 attach rates are pathetic.

Ok for the Sony fanboys out there, It's time to embrace the reality. Sony's game divison has lost nearly 2 billion dollars. The PS3 won't be making a profit for at least 2-3 years. Not only will they not be making a profit, they will be losing money on the each PS3 sold. That means nearly 3 years of strait loses for Sony. So in 3 years while Sony is just staring to recoup some of it's losses, Microsoft and Nintendo will be preparing to drop their new systems. Yeah it looks pretty bad for Sony right now. Not quite sure how they are going to dig themselves out of the hole that they are putting themselves in.

they will never recover.

"blacktorn sony loses 1.7 billion while microsoft lost $3+ billion.Sony wins " 3 billion ? Why does it say Microsoft only lost 96 million then ??? Sony is worth 30 billion. One owner of Microsoft is worth around 40 billion alone, not the company itself.

Sony will be here till the end of time as well as MS and Nintendo so calm down kiddies.

sony is so boned...

According to those crazy Joystiq bloggers, this must mean Sony really loves us to lose this much money >_>

Sony is starting to look ripe for a takeover. Fanboys fear a M$ buyout...

That's alot of mulah

A lot of people think sony won't be able to recover from this loss, but you forget it's sony. Of course with the new technology that they are trying to push with their system is going to be costly. All new technology costs lots to produce, but given enough sales, cost of production will come down and sony will gain money back. You have to lose money to make money.

"kyosukeugc These are Projected losses.They're doing estiamtes based on the prcing/cost to make, etc... You don't have to have somethign on the market already to "esitmate" " OK. They do say the losses are through March 2007. Given that they know they are going to sell 100,000 PS3s in Japan, they can easily calculate the losses from these sales. Thanks - I thought they were comparing Sony's revenues to the same quarter as those listed for Microsoft. Would make sense, but that's not what they did.

Wow, 1.7 Billion is like 17 times as much as microsoft lost this year. But Microsoft stock is valued at $28.75 and Sony's stock is at $41.59 Just to compare, Nintendo stock is at $25.80 I think all the companies are fine and nobody is going anywhere, it should be a good console lifecycle / war.

wow that can't be good!

The loss of a lot of money doesn't surprise me. I was very surprised that it is going to be double than initial thoughts. But, then they said that the price drop was counted in and it makes sense. They are taking a huge hit on development costs and on having the Blu-Ray player in there. It does continue to make me think that Sony has gone too far to the graphic performance side of development, though.

"blacktorn sony loses 1.7 billion while microsoft lost $3+ billion.Sony wins" Um, where did you get this from? The linked report showed MS losing $96 million. Nice try.

REVENGEotSITH If this report is from the July - September quarter, and the PS3 has yet to be released, how can these losses be atributed to the lowering of the price of the PS3??? Wouldn't you have to had SOLD PS3s in Japan for this price reduction to be attributed to the company's losses? The thing is, once the system is released, Sony will lose on the order of $150 for each PS3 sold, thus more losses." These are Projected losses.They're doing estiamtes based on the prcing/cost to make, etc... You don't have to have somethign on the market already to "esitmate"

Wow. Not only will getting a PS3 break the buyers' wallet, it'll also break Sony's to make it. Go Microsoft and Nintendo...

"The point really is that " What comes around, goes around.

Ouch! dang that kind of sucks, for them anyway.....o well at lease they make great systems which i'm sure they'll make their money back.