Technology Sony losing money on the PS3

[Salar]

Gamespot

According to the latest issue of Japanese magazine Toyo Keizai, Merrill Lynch Japan Securities has recently calculated an analysis that the production of a single PlayStation 3 console will cost Sony approximately 54,000 yen to make ($494), as of its initial release in 2006.
Merrill Lynch Japan estimates that the machine's main components--namely its Cell chip, RSX, and BD-ROM drive--will cost about 11,000 yen ($101) each. After adding the other electronics that will be used in the PS3, the machine's production cost goes up to 54,000 yen.

Given that Sony's PS3 will face stiff competition from Microsoft's Xbox 360, the chances that Sony will release its console at its production cost is slim. Under the assumption that the Xbox 360 is expected to sell at around $299, Merrill Lynch Japan predicts that Sony will sell each PS3 at the price of 44,800 yen ($410) in Japan and $399 in America. That would mean Sony would suffer a loss of more than 130 billion yen ($1.18 billion) during the first year of the PS3's release

This is why Microsoft came up with Live because the were losing money on each console sold with the first xbox. Apparently with the 2nd one (though they are still losing money) the gap is considerably smaller.

Sony has a few things going against it. It comes out later, it's more expensive (mind you the xbox did the same so there's no reason why they can't penetrate the market) and one of the things that make alot of people turn towards or away from a console is that even if it can be chipped you can't burn games (unless you have a blu-ray disc burner which i am quitely confident won't come out for a few years since a median technology hasn't even been chosen yet.

 

[Salar]

Gamespot

According to the latest issue of Japanese magazine Toyo Keizai, Merrill Lynch Japan Securities has recently calculated an analysis that the production of a single PlayStation 3 console will cost Sony approximately 54,000 yen to make ($494), as of its initial release in 2006.
Merrill Lynch Japan estimates that the machine's main components--namely its Cell chip, RSX, and BD-ROM drive--will cost about 11,000 yen ($101) each. After adding the other electronics that will be used in the PS3, the machine's production cost goes up to 54,000 yen.

Given that Sony's PS3 will face stiff competition from Microsoft's Xbox 360, the chances that Sony will release its console at its production cost is slim. Under the assumption that the Xbox 360 is expected to sell at around $299, Merrill Lynch Japan predicts that Sony will sell each PS3 at the price of 44,800 yen ($410) in Japan and $399 in America. That would mean Sony would suffer a loss of more than 130 billion yen ($1.18 billion) during the first year of the PS3's release

This is why Microsoft came up with Live because the were losing money on each console sold with the first xbox. Apparently with the 2nd one (though they are still losing money) the gap is considerably smaller.

Sony has a few things going against it. It comes out later, it's more expensive (mind you the xbox did the same so there's no reason why they can't penetrate the market) and one of the things that make alot of people turn towards or away from a console is that even if it can be chipped you can't burn games (unless you have a blu-ray disc burner which i am quitely confident won't come out for a few years since a median technology hasn't even been chosen yet.

 

[Salar]

and another thing, if microsoft buys all the consoles released by sony, sony will lose more money than microsoft. i find that amusing.

 

[Salar]

and another thing, if microsoft buys all the consoles released by sony, sony will lose more money than microsoft. i find that amusing.

 

[Swollen_Member]

PS3 will be making all it's money from their games.

 

[Rukas]

Fuck, $1.18 billion during the first year of the PS3's release. Thats a shit load of cash.

Im sure they can take it on the chin though. Sony's pockets are very deep.

 

[Rukas]

Fuck, $1.18 billion during the first year of the PS3's release. Thats a shit load of cash.

Im sure they can take it on the chin though. Sony's pockets are very deep.

 

[Get In The Van I Have Candy]

Yeah they will make it on their games just like the Xbox is doing right now.

 

[Get In The Van I Have Candy]

Yeah they will make it on their games just like the Xbox is doing right now.

 

[S. Fourteen]

Im sure they can take it on the chin though. Sony's pockets are very deep.

^ yeah, Sony's pockets are deep.


I worked on a case involving copyright infringement and Sony was one of the defendants. I read pages of company documents and they basically steal technology without thinking twice. They just pay the damage (if they get cought) because the legal fees and all that shit is factored into the price of the merchandise you buy.

 

[S. Fourteen]

Im sure they can take it on the chin though. Sony's pockets are very deep.

^ yeah, Sony's pockets are deep.


I worked on a case involving copyright infringement and Sony was one of the defendants. I read pages of company documents and they basically steal technology without thinking twice. They just pay the damage (if they get cought) because the legal fees and all that shit is factored into the price of the merchandise you buy.

 

[Pain Of Depth]

seriously , the one , stop pretending that u don't hate the ps or whatever has to do with it .... it's annoying
I don't give a fuck if you hate it , but do it on your own , seriously ...

pz

 

[bigmack]

seriously , the one , stop pretending that u don't hate the ps or whatever has to do with it .... it's annoying
I don't give a fuck if you hate it , but do it on your own , seriously ...

pz

LoL .......

Anyways, EVERYONE loses money on their consoles. They make their money off games and accessories.

 

[Rukas]

seriously , the one , stop pretending that u don't hate the ps or whatever has to do with it .... it's annoying
I don't give a fuck if you hate it , but do it on your own , seriously ...

pz

How the fuck does him posting this news show any bias against the PS3.

Is this news? Yes. Is Sony going to lose money? Yes. Did he say this means the PS3 or Sony sucks? No. Did he say this was going to effect the quality of the console or games? No.



Grow up.

 

[KDeezy]

LoL .......

Anyways, EVERYONE loses money on their consoles. They make their money off games and accessories.

THANK YOU.......... there isnt 1 system out right now that has been profitable right away, M$ took a HUGE loss with the Xbox, sony did too with the ps2, nintendo did too.

And no matter how much of a hit Sony is taking with the PS3 console...... it sure as hell gonna make 10x that through software.

 

[Pain Of Depth]

yeah , but u don't see him posting that f****** i*i*t

 

[bigmack]

THANK YOU.......... there isnt 1 system out right now that has been profitable right away, M$ took a HUGE loss with the Xbox, sony did too with the ps2, nintendo did too.

And no matter how much of a hit Sony is taking with the PS3 console...... it sure as hell gonna make 10x that through software.

yea making consoles costs lots of money,and if they wanted to profit off of them then they would cost too much and they would still lose money from lack of sales.

and if they didnt make any money off software then they would stop making consoles. they are not doing it so people can have fun playing games lol, they are trying to make money.

 

[bigmack]

yeah , but u don't see him posting that f****** i*i*t

lol wtf????

 

[Salar]

yeah , but u don't see him posting that f****** i*i*t

Gamespot
This is why Microsoft came up with Live because the were losing money on each console sold with the first xbox. Apparently with the 2nd one (though they are still losing money) the gap is considerably smaller.

How did i not fucking saying it.

 

[Flipmo]

Most consoles lose alot of money when released. Long time ago, when I was much younger, I remember my brother saying how much 'Sega' was losing money from it's Genesis, but all the money came back with the games and other accessories (remember the 6 button controller? lol)... Damn, the Genesis had the dopest games ever.... lol