PS3 pushing SCE $1.71 billion into red

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. Someone with a master's degree in Business Admin, please fill me in on how this price reduction affected last quarter's financials...

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.

I don't think Sony can dig their way out of this hole now ... if the PS3 doesn't sell like chips then they run the risk of loosing a whole lot of money and loosing the title of first in the gaming industry, maybe going to 2nd or even 3rd ....

sony loses 1.7 billion while microsoft lost $3+ billion.Sony wins

fruitcake13 maybe you should go look back several years ago when DVD first came out and look at the prices then. It was about the same.

it happens everytime a console comes out, but this is with that laptop problem they'v had , you got to loose money to make money...... ok a billion.7 is alot but you got to risk it for a biskit (cookie for the stats:)....., 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

Hey I'm just tired of the gaming community complaining about everything lately. Everyone seems to be a big bunch of whiners. See look at me I'm complaining now about people complaining..... My point being though is what do we gain from complaining about it? PS3 will succeed, whether we like it or not. Funny thing beign 85% of the people **** will end up with a PS3 in their home... so all of this is a pointless waste of breath in complaining about minute things. Sony has led the gaming industry for the past decade now. Maybe it's time for a de-thronement, but they've delivered us awesome content up until now and I don't expect that to stop. We will all just have to wait and see I suppose, but don't count your chickens on this being Sony's downfall. Wait til the PS4 for that. =)

kyosukeugc, more than some of us have plenty of cash to afford a PS3, it's a matter of wanting a PS3. As far as the games I've seen, it doesn't do anything my PS2 doesn't do, just that it's flashier. That isn't going to make me go drop close to a grand to get the thing, with a second controller and a handful of games. Get over your getting over us. karnis "sony will be fine." Tell that to all of the people who used to work in Sony studios, who have lost their jobs over the last 2 years. They aren't adding jobs, they're losing them, and why? Because they've had a business plan that has driven technology, over actual gaming, turning a blind eye to developers who have already been struggling to make profits. Now thanks to big brother Sony, they get to make even less profits on PS3 games. I'm sure they're really excited about that. methedemon "That's okay, they will get millions and billions from the PS3." Clearly you have never paid attention to any of the videogame news before, or you'd know that Sony has never turned a profit on any of its hardware, and they are projected to take huge losses on every PS3 system sold. Losses on EVERY system sold. So where are these millions and billions supposed to come from? In theory, the software sales. Unfortunately for PS3 developers, the games now cost so many times more to develope, that unless Sony moves millions and millions of systems really, really fast, they won't be able to make ANY profit. Hence why, if you've been paying attention, PS3 developers are now holding off on their PS3 releases, until such time that they think they can actually make their money back. Many of them are now shifting their resources away from PS3 developement, and toward the Wii and 360, because they see that they can actually profit off of those systems now. Not in the future, or some unforeseeable time. If Sony is able to sell 6 million systems by this time next year, I'll eat a car.

"I think the idea of worrying about a delay in PlayStation is slightly strange to me," I think what is even stranger is Sony saying "Spring 2006", then "November 2006", then "Spring 2007".

YAAAAAAY SONY'S GOING DOOOOWN!!! Wow..this place is great times..take that SONY..do you guy's even hear yourselves?? Children..

i think sony is manipulating gamers and taking advantage of them. Honestly, how many gamers can afford a $600 console, with $50-60 games, $50 controllers? Even the blu-ray movies cost a good $25-$35, much more than dvds. the company isn't doing well now (ps3, MASSIVE battery recalls, poor tv sales). i do not want to see them fall but didn't they learn anything from the psp? flashy specs and gimmicks don't equal success. i'm anxious to see how it plays out. the 360 and wii just seem alot more appealing now.

Man, I can't wait for PS3. I wasn't excited before... but now I can't wait. I got a 360 at home, and a Wii on preoder, but for some reason... I couldn't care less about those. I'm sure the hype will wash over... but for now... I can't wait/

--dadeisvenm-- Dude, take 30 seconds and look up a stock exchange posting...

oh noes! sony is teh doom3d!!!11111

Kyosukeugc - Such words of wisdom and leadership... I'm sure the forum will rally behind your banner... lol

You will be nickel and dimed by Sony's " Free " online service. This is another kick in the pants to sony " MGS4 may be 360 bound..."an ex-1Up employee was quoted as saying, "Konami higher-ups are pressuring Kojima Productions to consider making MGS4 a multiplatform game because production costs on the game are unsurprisingly high and only getting higher"

--losses will be double previous estimates-- Look...over a year ago people we pegged the loss / unit at $250...and simple math lead us to that number X number of units sold. Once again Sony's denial is more frustrating then anything, this is not news...the only news is how long it took them to finally admit it.

Jofy, Yes, I know tons about investments and Sony stock value has dropped by over 50% in the past year. Thanks for reminding me to not invest in Sony!;)

if you ever want someone to ignore your comment... start it with "You all are a bunch of freakin morons."

There is a God afterall.

They need to be humbled and stop having this attitude of people will buy whatever we put out because you are all idiots.

sony will be fine

You all are a bunch of freakin morons. Why does everyone want Sony to fail? Not everyone, but yeah... None of this even started to get bad at all until the PS3 price was announced. Get over yourseves, get a part-tme job and buy the damn thing with that money. Stop being the lazy asses you are and complaining about everything because of the price. They aren't arrogant, they're doing what they can to deliver the best gamign experience ou ther. If you don't liek that, then go eff yourself. Stop acting like a bunch of 10 year olds whos mom won't buy him that candy bar at the grocery store. Losses happen, **** happens, companies like Sony recover. 1.7 isn't that much in the long run for a company of their size. Realize that, get over it.

Ps3 price will not drop... Not for another 3 years....

LosDaddie has gone completely lunatic fringe

Why would anybody who is a gamer love this? This sucks. I hope the PS3 division can recover. Also, it has just been reported that PS3 shipping targets in Japan will be shorted by 20K. That is huge. I wonder what the target will be short in the US. I would guess 80,000 units less. I hope Canada takes it in the shorts completely. Just kidding guys. It will likely be spread out across all of North America.

LosDaddie Great news!! What an awesome announcement to start the week. The downfall of Sony is happening before our very eyes! Do you know anything about investment,I guess you must be 10 years old,its too complicated for you to understand

Sony will be fine

stacyhilt put it perfectly...

"One reason cited for the increased costs is Sony's decision to drop the price of the lower-end PS3 model in Japan. At last month's Tokyo Game Show, the company announced it would lower the price of the 20GB version of the next-gen console from 60,000 yen (about $515) to 49,980 yen (about $429). " BS..........

I hate to say this, but unless Sony drops the price of the PS3 by half in the next 12-24 months, it'll be in dead last.

Yup, it seems that Microsoft's strategy of outspending Sony is working!!:D $1.71 BILLION in the red is horrible news no matter what. A corp with a sound business strategy would never allow this to happen. Sony needs to get it together because MS will not let up on them.:lol: :D Sony's time at the top is rightfully coming to an end!! The downfall of Sony is happening right before our eyes!!:lol: :lol:

That's okay, they will get millions and billions from the PS3.

HA, HA HA HA HA

Sony has a 86+ billion dollar reveue for 2006. They will be fine people.

Oh Sony when will your realise that your not the super power you think you are. Blu-ray is being owned by HD-DVD in terms of sales. The PS3 isn't going to do as well as Sony expects due to its price. If it fails Sonys going to be in deep.

Yea, Boy!

IAM LOVIN IT!!!!!!!!

LOL @ sony. To be honest, i htink they deserve to go down, or at least have something terrible hapen to them. I mean, the arrogance of Sony lately is so overwhelming that they deserve to be shot.

Despite the increased cost, Stringer expressed confidence that the PS3 will be a success. "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." The executive also expressed apparent befuddlement about some gamers' anger that the PS3 launch was pushed back to March 2007 in Europe. "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." Said Howard Stringer. I have a few problems with this guy's corporate bull. Just out of curiousity who in America has tested one of these things, besides of course factory people smiling when the little blue power indicator actually lights up when touched. The other is people are upset in Europe because they are always getting the crap end of the stick when it comes to console launches. Alot of them are probably upset that Sony made a stink about the not perfect launch of the 360 worldwide launch and made a point to tell them exactly how MS messed up and that they would not make the same mistake. Then at E3 announcing their own simultaneous worldwide launch, no staggering like MS. Then shortly afterwards came back with half the projected allotment and halving it again, then completely cutting Europe out for the next 3 months. I am a Sony fan even though I feel like they have burned alot of people here in the states with the lackluster PS2 launch, frequent defective products causing alot of retailers to rethink their once useful warranty programs by refusing to honor anything sent to them for repair. We will have to suffer another Xmas with waiting outside a chain retailer everyday waiting for them to open in hopes of coming across a system before years end and those less fortunate getting gouged on ebay, by someone who has no interest in gaming except for what it will do for their bank statement. I don't know if it is that I have been gaming to long and had hope that console makers would get their heads out of their arses and finally get it right. With the economy the way it is working long hours just to be able to enjoy your lifelong passion, is getting harder to justify everyday. Sorry I went on longer then I had planned.

hmsmichaelot: Sonys other divisions havn't been doing very well either, did you forget the laptop battery fiasco? Also Samsung has been killing them in LCD TV sales.

almost 2 billion lost already? I hope they can make up for that.

They almost assuredly will lose money next fiscal year. I mean their fiscal year starts in April. No way that PS3 will be not be sold for a lose that soon after launch. So they will be selling for a loss during much of next fiscal year too. $1.71B this year--say 1/3 to 1/2 that next year--That will be $2.3-2.6B (say $2-3B to be conservative). That is a LOT of ground to make back up. Especially with much better competition in this generation than last. Both xbox260 and Wii are strong competitors. And if they have to lower the price of PS3 due to xbox360 price drops...they could very well be much closer to that $3B loss--in 2 years.

Sir Howard Stringer: "The point really is that PlayStation 3 is already finished" I agree.

That last statement is hilarious. The Sony executive can't understand why people are upset about the delay? Sony is a great company, mostly, but I get so frustrated with their arrogance. Rather than being thankful and excited about the positive response to their product, the executive takes it for granted that everyone wants a PS3 and, in turn, is bewildered that gamers aren't willing to just sit patiently and get it when Sony's darn-good-and-ready. As for the actual content of this article - it's been established that Sony will lose money on every console sold. This is pretty standard. You don't make money on the razor, you make money on that blades. Sony will make money on the games, if they're good. At best, the company should hope to break even on a console sale, but never profit. Nintendo is breaking that rule this year with the Wii (to my frustration), but they're also losing money on the console *package* because it's bundled with a free title, so it's not quite apples-to-apples.

Some betting sites have Microsoft buying Sony within three years. This is funny but no way it would happen.

Good luck with that Madhatter73

Whoa, calm down much? Seriously, I haven't seen one "hater" in this comments list.

Sony will bounce back .

Sony is doing it for the GAMERS. What kinda retard would hate them for that you haters wanting the company to die (which is impossible since its not just games christ you people are stupid) is sick and basically shows you are still in or havent gotten to highschool and that all opinions you might have are invalid due to underage stupidity. Thats. Im guessing thats the bulk of you haters. Sony does tvs radios dvd plays surroundsound laptops computers movie production studios and yes games. just one division outa many. Im curious if any of you know how much that corporation if important to people all over the world. Those who say "down with sony" are just mindless fools.