“Based on DFC’s most current research, she (Wanda Meloni)Â says, Sony’s production losses per individual PS3 mean that the console can’t be expected to “break even” across its lifetime”
That is the startling conclusion of DFC’s recent analysis of the video game industry, apparently due to the huge manufacturing costs and competitive industry the PS3 is now not expected to even cover it’s own costs over it’s entire lifespan… Which according to Sony is 10 years.
It’s not all doom and gloom for Sony though as they are expected to still hold 40-50% of the market, which makes no sense to me as that would make them easily the leading console and if they win the race and still don’t make a profit you can bet they are going to think twice about bringing out a PS4.
Especially when their Nintendo pals are rolling in the cash from their supposedly inferior product while Microsoft is poised to score a large slice of the market and who are already making a profit as well.
Why are things just so confusing when it comes to Sony’s financials?
Source: Gamasutra
Is it just me or does the name Wanda Melon make you giggle?
Last Updated: October 31, 2008
SlippyMadFrog
October 31, 2008 at 09:00
I wonder if this research took into account the profit made from game sales and falling production costs. I reckon Sony will make a profit per console sold in a couple of years time.
abe
October 31, 2008 at 09:01
“Losses down from –GBP624 million to –GBP255 million”
That kind of doesnt make sense then?
and yes wanda melon does make me giggle 😆
Chevron
October 31, 2008 at 09:49
There will be a ps4. It’ll just be two ps3s duck taped together. It’ll just be a revised cell architecture with a better GFX card.
baba
October 31, 2008 at 09:55
The article on Gamasutra is not very specific. Is that on hardware only, or the whole gaming dept.?
baba
October 31, 2008 at 09:57
I don’t think it will be duck taped together, it will come apart, like the new controller!
abe
October 31, 2008 at 10:50
Cant be the whole gaming dept as they are definately making a profit!
xyber
October 31, 2008 at 11:55
Isn’t that what the Wii is? two gamecubes or something taped together? 😛 Maybe then Sony will make huge profits like Nintendo 😈
Ozzy
October 31, 2008 at 13:47
I hope Sony goes bankrupt.
They are now preying on their old customers by selling them Chinese made sub-standard products at the same comparatively higher prices. Products that were once made in Japan and that were worth paying extra for. I have been a sucker for their products in the past, but no more. Their rubbish functions just until the warranty expires and then you have to discard them because to repair them is almost the same price as a new one.
The last straw was when my PS3 malfunctioned after a mandatory update to the 2.43 firmware. The drive is now dead and will not read discs. Hundreds of thousands of PS3 users are having this problem but Sony doesn’t give a damn. One would expect more from such an expensive machine. I deprived my kid of an XBox 360 in order to get him the PS3. Now Sony have deprived him of that.
I will never buy any of their crap again until it is made in Japan, and with the same quality it once was. I will pay the extra.
FG
April 12, 2009 at 14:48
Sony has spent “ALL” of the profit they made from the ps1/ps2/ & the games sold for both systems developing the ps3 . They even started dragging down 23 other departments . This is where the 9.3 billion debt comes from just in the video games department hardware & software . This is why sony laid off 14000 people and closed 153 other product areas . They are not making a profit They are not making sales just google for 10 minutes and read the facts straight from sony themselves .
This is also why sony wants everyone with a ps3 hardware failure to send the broken machine to them via mail “NOT RETURN THEM TO RETAIL” so they can keep the true failure rates under cover . Sony is the Sole BD developer the rest of the BDA is a group of panzey companies sony paid to market the bluray disc at a discount . Nobody cares about bluray nobody cares about the ps3 and nobody cares about sony . except the sony colon lickin fanboys