Sony - Largest Losses in 4 Years!

Sounds like a little bit of bad news.. But I'm sure they will pull through. The really interesting part in the article is whether or not Sony can afford a price drop...

obviously theyre havin losses...every console manufacturer losses thee first few years while sellin their console but in the long-run they win soo much more profit

obviously theyre havin losses...every console manufacturer losses thee first few years while sellin their console but in the long-run they win soo much more profit

MSE369

Actually, thats not totally true. The Nintendo Wii is actually selling so well (and its that cheap) that its giving Nintendo profit from its sales. Sony is losing money for different reasons besides besides new console growing pains, They had flaws in their marketing and selling strategies that lead them to what is hurting them now...In the long run though, you are right, they are most likely going to bounce back even if they do need to cut the price once or even twice in a few years time.

I believe that EVERY company in the world posts a loss in their first year of a new design.  No one can make back a billion in one year.  Perhaps we should examine how long the other console has been trying to work themselves into a profit situation?

Celli I think it is pretty pathetic that THIS is your very first time creating a topic on the PS3 forum and this is what you bring to the table. 

Sounds like a little bit of bad news.. But I'm sure they will pull through. The really interesting part in the article is whether or not Sony can afford a price drop...

What are your thoughts?Cellien

I think you're jealous you can't afford one. 

[QUOTE="Trek5200"]

I believe that EVERY company in the world posts a loss in their first year of a new design. No one can make back a billion in one year. Perhaps we should examine how long the other console has been trying to work themselves into a profit situation?

Celli I think it is pretty pathetic that THIS is your very first time creating a topic on the PS3 forum and this is what you bring to the table.

Cellien

http://ce.seekingalpha.com/article/32642

He has a point. Everyone suffers losses. 

[QUOTE="Cellien"]

Sounds like a little bit of bad news.. But I'm sure they will pull through. The really interesting part in the article is whether or not Sony can afford a price drop...

What are your thoughts?Roiding_Barry

I think you're jealous you can't afford one.

[QUOTE="Roiding_Barry"][QUOTE="Cellien"]

Sounds like a little bit of bad news.. But I'm sure they will pull through. The really interesting part in the article is whether or not Sony can afford a price drop...

What are your thoughts?Cellien

I think you're jealous you can't afford one.

You are most welcome. Probably better to just admit that then post troll-style material. 

I believe that EVERY company in the world posts a loss in their first year of a new design.  No one can make back a billion in one year.  Perhaps we should examine how long the other console has been trying to work themselves into a profit situation?

Celli I think it is pretty pathetic that THIS is your very first time creating a topic on the PS3 forum and this is what you bring to the table. 

Trek5200

[QUOTE="MSE369"]

obviously theyre havin losses...every console manufacturer losses thee first few years while sellin their console but in the long-run they win soo much more profit

RandomTask221

Actually, thats not totally true. The Nintendo Wii is actually selling so well (and its that cheap) that its giving Nintendo profit from its sales. Sony is losing money for different reasons besides besides new console growing pains, They had flaws in their marketing and selling strategies that lead them to what is hurting them now...In the long run though, you are right, they are most likely going to bounce back even if they do need to cut the price once or even twice in a few years time.

[QUOTE="Cellien"][QUOTE="Trek5200"]

I believe that EVERY company in the world posts a loss in their first year of a new design. No one can make back a billion in one year. Perhaps we should examine how long the other console has been trying to work themselves into a profit situation?

Celli I think it is pretty pathetic that THIS is your very first time creating a topic on the PS3 forum and this is what you bring to the table.

Roiding_Barry

http://ce.seekingalpha.com/article/32642

He has a point. Everyone suffers losses.

[QUOTE="Cellien"][QUOTE="Trek5200"]

I believe that EVERY company in the world posts a loss in their first year of a new design. No one can make back a billion in one year. Perhaps we should examine how long the other console has been trying to work themselves into a profit situation?

Celli I think it is pretty pathetic that THIS is your very first time creating a topic on the PS3 forum and this is what you bring to the table.

Roiding_Barry

http://ce.seekingalpha.com/article/32642

He has a point. Everyone suffers losses. 

That article is slightly bias, I mean just look at the title. Losses arn't necessarily determined by how much the company doesn't get back from their console, but rather how much they lose total from marketing, producution, repairs, and most of all the lack of people buying their product (market flood). (which is Sony's case with the PS3)

[QUOTE="Roiding_Barry"][QUOTE="Cellien"][QUOTE="Trek5200"]

I believe that EVERY company in the world posts a loss in their first year of a new design. No one can make back a billion in one year. Perhaps we should examine how long the other console has been trying to work themselves into a profit situation?

Celli I think it is pretty pathetic that THIS is your very first time creating a topic on the PS3 forum and this is what you bring to the table.

RandomTask221

http://ce.seekingalpha.com/article/32642

He has a point. Everyone suffers losses.

That article is slightly bias, I mean just look at the title. Losses arn't necessarily determined by how much the company doesn't get back from their console, but rather how much they lose total from marketing, producution, repairs, and most of all the lack of people buying their product (market flood). (which is Sony's case with the PS3)

[QUOTE="RandomTask221"][QUOTE="Roiding_Barry"][QUOTE="Cellien"][QUOTE="Trek5200"]

I believe that EVERY company in the world posts a loss in their first year of a new design. No one can make back a billion in one year. Perhaps we should examine how long the other console has been trying to work themselves into a profit situation?

Celli I think it is pretty pathetic that THIS is your very first time creating a topic on the PS3 forum and this is what you bring to the table.

Trek5200

http://ce.seekingalpha.com/article/32642

He has a point. Everyone suffers losses.

That article is slightly bias, I mean just look at the title. Losses arn't necessarily determined by how much the company doesn't get back from their console, but rather how much they lose total from marketing, producution, repairs, and most of all the lack of people buying their product (market flood). (which is Sony's case with the PS3)

If you would like an example of BIAS you should perhaps take a look at the TC's post history, it speaks volumes.

[QUOTE="RandomTask221"][QUOTE="Roiding_Barry"][QUOTE="Cellien"][QUOTE="Trek5200"]

I believe that EVERY company in the world posts a loss in their first year of a new design. No one can make back a billion in one year. Perhaps we should examine how long the other console has been trying to work themselves into a profit situation?

Celli I think it is pretty pathetic that THIS is your very first time creating a topic on the PS3 forum and this is what you bring to the table.

Cellien

http://ce.seekingalpha.com/article/32642

He has a point. Everyone suffers losses.

That article is slightly bias, I mean just look at the title. Losses arn't necessarily determined by how much the company doesn't get back from their console, but rather how much they lose total from marketing, producution, repairs, and most of all the lack of people buying their product (market flood). (which is Sony's case with the PS3)

I think you quoted the wrong guy lol, but anyway, I'm not trying to start a fight here (Trek5200) but I am simply pointing out the issues behind Sony losing money on the PS3.. I'm even thinking about buying a PS3 myself, so you can't call me a fanboy troll :)..

[QUOTE="Cellien"][QUOTE="RandomTask221"][QUOTE="Roiding_Barry"][QUOTE="Cellien"][QUOTE="Trek5200"]

I believe that EVERY company in the world posts a loss in their first year of a new design. No one can make back a billion in one year. Perhaps we should examine how long the other console has been trying to work themselves into a profit situation?

Celli I think it is pretty pathetic that THIS is your very first time creating a topic on the PS3 forum and this is what you bring to the table.

RandomTask221

http://ce.seekingalpha.com/article/32642

He has a point. Everyone suffers losses.

That article is slightly bias, I mean just look at the title. Losses arn't necessarily determined by how much the company doesn't get back from their console, but rather how much they lose total from marketing, producution, repairs, and most of all the lack of people buying their product (market flood). (which is Sony's case with the PS3)

I think you quoted the wrong guy lol, but anyway, I'm not trying to start a fight here (Trek5200) but I am simply pointing out the issues behind Sony losing money on the PS3.. I'm even thinking about buying a PS3 myself, so you can't call me a fanboy troll :)..

Sure, Sony's games division may be posting losses, but you have to look at the broader picture. 

Ninty has to make money on its consoles.  Their only sources of revenue are videogames and consoles sales and a few other media, such as their trading cards and TV shows.

Sony, on the other hand, is using the PS3 to push a brand strategy, not just a category strategy.  At the moment, Sony is really driving home the "Full HD 1080p" experience.  They were the most successful CE company in TVs this past year (one of the highest profit margin categories in the industry), and 1080p was a huge part of it.  At the moment, they're focusing a lot of attention on Blu-Ray.

Having a loss leader (like the PS3) is all well and good for a company, so long as that money is being made up elsewhere.  Which it is, being both 1080p and a Blu-Ray player. :)

obviously theyre havin losses...every console manufacturer losses thee first few years while sellin their console but in the long-run they win soo much more profit

MSE369

exactly. this happens EVERY gen with EVERY system. why do people constantly act like this is news. we all know they lose money on production costs and launching new systems yadda yadda yadda. jesus...that's like calling a rainbow after it rains news. we all know it's coming...cause it ALWAYS COMES! lol.

Sure, Sony's games division may be posting losses, but you have to look at the broader picture.

Ninty has to make money on its consoles. Their only sources of revenue are videogames and consoles sales and a few other media, such as their trading cards and TV shows.

Sony, on the other hand, is using the PS3 to push a brand strategy, not just a category strategy. At the moment, Sony is really driving home the "Full HD 1080p" experience. They were the most successful CE company in TVs this past year (one of the highest profit margin categories in the industry), and 1080p was a huge part of it. At the moment, they're focusing a lot of attention on Blu-Ray.

Having a loss leader (like the PS3) is all well and good for a company, so long as that money is being made up elsewhere. Which it is, being both 1080p and a Blu-Ray player. :)

nietzscheyay

[QUOTE="MSE369"]

obviously theyre havin losses...every console manufacturer losses thee first few years while sellin their console but in the long-run they win soo much more profit

sdkingsht

exactly. this happens EVERY gen with EVERY system. why do people constantly act like this is news. we all know they lose money on production costs and launching new systems yadda yadda yadda. jesus...that's like calling a rainbow after it rains news. we all know it's coming...cause it ALWAYS COMES! lol.

To have a long term plan in this business you have to have short term victory... 

The reason the PS1 and PS2 were supported long past the standard 5 year cycle was because they were the UNDISPUTED MARKET LEADERS. By the time the cycle ended they were in a good position so Sony could continue to support them.

The PS3 on the other hand is getting its tail kicked in Japan by Nintendo, by Microsoft in the U.S., and by BOTH in Europe (weekly sales over there have now dropped to around 12000 a week).

The fact is, if your console fails in the first year or 2, devs and consumers will in fact move on. It's what happened to the Gamecube even though Nintendo made profit off it from the jump. Because it didn't grab anyonefrom the get go.

To have a long term plan in this business you have to have short term victory...

The reason the PS1 and PS2 were supported long past the standard 5 year cycle was because they were the UNDISPUTED MARKET LEADERS. By the time the cycle ended they were in a good position so Sony could continue to support them.

The PS3 on the other hand is getting its tail kicked in Japan by Nintendo, by Microsoft in the U.S., and by BOTH in Europe (weekly sales over there have now dropped to around 12000 a week).

The fact is, if your console fails in the first year or 2, devs and consumers will in fact move on. It's what happened to the Gamecube even though Nintendo made profit off it from the jump. Because it didn't grab anyonefrom the get go.

jackelcog

obviously theyre havin losses...every console manufacturer losses thee first few years while sellin their console but in the long-run they win soo much more profit

MSE369

Spin somewhere else. 

If you would like an example of BIAS you should perhaps take a look at the TC's post history, it speaks volumes.

Trek5200

[QUOTE="Trek5200"]

If you would like an example of BIAS you should perhaps take a look at the TC's post history, it speaks volumes.

chubear700

 :lol: thats pretty funny..I don't know this guy, because I'm pretty new to the PS3 forums, but he sounds like a jackass.. haha

Well duh, they lose so much per console sales, but they have to sell it that low to pierce the market. They'll make profit over software once very big sellers like MGS, FF and God Of War gets on the PS3. Their investment will also be good if Blu-Ray wins. Not only that, but things like the laptop battery sure didn't help.

No risk, no gain.

First off, not everyone starts off with losses (namely Nintendo).

jackelcog

It's the only console that was sold at profit, obviously they won't lose much. Also counting that they saved a lot in R&D by using the same hardware. If you don't spend, obviously you won't lose money.