Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sony has a little problem...

MX13MX13 Member Posts: 2,489
...well, not so little actually. So far they've had to recall over 7 million batteries, with an estimated cost including all associated expenses of about70 million dollars & over 100 million of potential contract losses. Add that to the 270 million they owe in back taxes, and that 65 million a year of potential Pre-CU revenue isn't looking so bad I bet, hehehe

I'll start my own SWG... with Black Jack... and Hookers!!!

In fact, forget the SWG!!!!

image
image
image

Comments

  • KzinKillerKzinKiller Member Posts: 625
    Peanuts compared to the $2b+ projected loss on PS3 over the first couple years.

    A billion here, a billion there, pretty soon you're talking real money.


    image

  • MrArchyMrArchy Member Posts: 643
    FYI all - if you see the brand name Akai, it's actually Sony. 

    SWG Veteran and Refugee, Intrepid server
    NGE free as of Nov. 22, 2005
    Now Playing: World of Warcrack
    Forum Terrorist
    image

  • GlacianNexGlacianNex Member UncommonPosts: 610


    Originally posted by KzinKiller
    Peanuts compared to the $2b+ projected loss on PS3 over the first couple years.

    A billion here, a billion there, pretty soon you're talking real money.




    Every console in history is sold at a huge loss. They make those money back on games.
  • MX13MX13 Member Posts: 2,489


    Originally posted by Urza123

    Originally posted by KzinKiller
    Peanuts compared to the $2b+ projected loss on PS3 over the first couple years.

    A billion here, a billion there, pretty soon you're talking real money.

    Every console in history is sold at a huge loss. They make those money back on games.


    Not like this... the estimated costs of the PS3 is over $1600 per unit on average over 2 years, with a retail of $499 to $599... that's just insane...

    No one really knows the exact numbers, but it's an insanely high loss per unit...

    I'll start my own SWG... with Black Jack... and Hookers!!!

    In fact, forget the SWG!!!!

    image
    image
    image

  • MX13MX13 Member Posts: 2,489


    Originally posted by KzinKiller
    Peanuts compared to the $2b+ projected loss on PS3 over the first couple years.

    A billion here, a billion there, pretty soon you're talking real money.


    I agree it will happen, but it hasn't yet...

    I'll start my own SWG... with Black Jack... and Hookers!!!

    In fact, forget the SWG!!!!

    image
    image
    image

  • Wildcat84Wildcat84 Member Posts: 2,304
    Sony can't even make a battery right much less a MMO.


  • GlacianNexGlacianNex Member UncommonPosts: 610


    Originally posted by MX13

    Originally posted by Urza123

    Originally posted by KzinKiller
    Peanuts compared to the $2b+ projected loss on PS3 over the first couple years.

    A billion here, a billion there, pretty soon you're talking real money.

    Every console in history is sold at a huge loss. They make those money back on games.


    Not like this... the estimated costs of the PS3 is over $1600 per unit on average over 2 years, with a retail of $499 to $599... that's just insane...

    No one really knows the exact numbers, but it's an insanely high loss per unit...


    True, however in the end they will still make insane profit.
  • MX13MX13 Member Posts: 2,489


    Originally posted by Urza123

    Originally posted by MX13

    Originally posted by Urza123

    Originally posted by KzinKiller
    Peanuts compared to the $2b+ projected loss on PS3 over the first couple years.

    A billion here, a billion there, pretty soon you're talking real money.

    Every console in history is sold at a huge loss. They make those money back on games.


    Not like this... the estimated costs of the PS3 is over $1600 per unit on average over 2 years, with a retail of $499 to $599... that's just insane...

    No one really knows the exact numbers, but it's an insanely high loss per unit...


    True, however in the end they will still make insane profit.


    They only make about $5 per game, well maybe more with this console, but not much... that would mean each gamer would have to buy 210 games for them to turn a profit...

    I'll start my own SWG... with Black Jack... and Hookers!!!

    In fact, forget the SWG!!!!

    image
    image
    image

  • GlacianNexGlacianNex Member UncommonPosts: 610


    Originally posted by MX13

    Originally posted by Urza123

    Originally posted by MX13

    Originally posted by Urza123

    Originally posted by KzinKiller
    Peanuts compared to the $2b+ projected loss on PS3 over the first couple years.

    A billion here, a billion there, pretty soon you're talking real money.

    Every console in history is sold at a huge loss. They make those money back on games.


    Not like this... the estimated costs of the PS3 is over $1600 per unit on average over 2 years, with a retail of $499 to $599... that's just insane...

    No one really knows the exact numbers, but it's an insanely high loss per unit...


    True, however in the end they will still make insane profit.


    They only make about $5 per game, well maybe more with this console, but not much... that would mean each gamer would have to buy 210 games for them to turn a profit...

    Well actually they make a lot more then 5$ per game. The retailer would make $5 per game. Developer and publisher make a lot more. Either have nothing to do with Sony, in the essence if of it development companies buy rights from Sony to make games for PS3. Usually that purchase is representated by percentage off of sales, if my memeory servers me right with PS2 Sony made about 17% of every game sold for PS2.

    If there was a 5% chance that PS3 would not make profit Sony would cut the project or at least reconsider it. Most of it has to do with the fact that all modern software and hardware developers are extreemly concervative. Even if there is a slight chance that project will fail they will not invest. So the only question right now is how much they will actually make.
  • Wildcat84Wildcat84 Member Posts: 2,304
    If 500,000 people bought a PS3 then never bought a game (steal them all by copying), Sony would most assuredly go bankrupt.



  • DistopiaDistopia Member EpicPosts: 21,182


    Originally posted by Wildcat84
    If 500,000 people bought a PS3 then never bought a game (steal them all by copying), Sony would most assuredly go bankrupt.





    One down , About 100 more to go

    For every minute you are angry , you lose 60 seconds of happiness."-Emerson


  • MX13MX13 Member Posts: 2,489


    Originally posted by Urza123

    Originally posted by MX13
    They only make about $5 per game, well maybe more with this console, but not much... that would mean each gamer would have to buy 210 games for them to turn a profit...

    Well actually they make a lot more then 5$ per game. The retailer would make $5 per game. Developer and publisher make a lot more. Either have nothing to do with Sony, in the essence if of it development companies buy rights from Sony to make games for PS3. Usually that purchase is representated by percentage off of sales, if my memeory servers me right with PS2 Sony made about 17% of every game sold for PS2.

    If there was a 5% chance that PS3 would not make profit Sony would cut the project or at least reconsider it. Most of it has to do with the fact that all modern software and hardware developers are extreemly concervative. Even if there is a slight chance that project will fail they will not invest. So the only question right now is how much they will actually make.


    Sorry, but it's not a question of how much they will make yet. I may be mistaken, but I believe Sony recieved an average of 10% of each games sold, that's $5 on a $50 game. But let's say you're close, and it 15%, that means they would make an average of $7.50 a game. But lets take it even further and round that up to a fat $10 per game sold. That would still mean they would have to sell 105 games ($6300 of games) per unit, which won't happen.

    But it's not just these numbers, industry analyists have openly questioned if Sony will break a profit on the PS3 in fewer than 5 years, which would make it a HUGE money looser for the company.

    As far as Sony cutting the PS3, it wouldn't happen even if they were loosing $2k per unit. Why? Blueray, makret loss & reputation. It's the best known product they have in the world, the last thing they will do is ditch it and become the next Sega...

    I'll start my own SWG... with Black Jack... and Hookers!!!

    In fact, forget the SWG!!!!

    image
    image
    image

  • miagisanmiagisan Member Posts: 5,156
    if you know anything aboutthe computer industry....its not the main computer/ console which makes your money..in fact its usually below cost and / or no more than 2% markup. i was an electronics manager for many years in a big retail chain. Comps were marked up no more than 2%. Software, peripherals (mouses, keyboards, printers) and media (blank cds, disks, etc) are marked up any where from 70-250% . And they tell you in retail... sell peripherals. Why you think when you buy a comp or vid game system or printer they push the accessories? like ink carttridges, monitors, etc. Thats where they make their money.

    image

  • miagisanmiagisan Member Posts: 5,156
    and besides, not all soe games are crap. ever since the demise of SWG....i have found solace in eq2. That game is really really good with a feel of semi pre nge...not as good as classic swg...but it s pretty good. And vanguard looks VERY promising

    image

  • SpathotanSpathotan Member Posts: 3,928


    Originally posted by Urza123

    Originally posted by KzinKiller
    Peanuts compared to the $2b+ projected loss on PS3 over the first couple years.

    A billion here, a billion there, pretty soon you're talking real money.



    Every console in history is sold at a huge loss. They make those money back on games.


    The Wii is set to make money straight out of the factory. Not sure of the exact amount, but regardless, its saying alot. These companies like Sony need to stop constantly aiming for the top of the world if they plan on staying around much longer.

    "There's no star system Slave I can't reach, and there's no planet I can't find. There's nowhere in the Galaxy for you to run. Might as well give up now."
    — Boba Fett

  • Wildcat84Wildcat84 Member Posts: 2,304
    I doubt I buy any console.  I quit being a serious console gamer when I gave up my Atari 2600 for my Commodore VIC-20 and then later Commodore 64.

    Real computers videogame better than consoles.  Always have, always will.



  • bigfootsbigfoots Member Posts: 198

    Pah, I steer well clear of any product with a Sony badge on it.

    I'm sure there are at least a few like me. Those small amounts soon start adding up....well their profit figures won't be as large as they would've been anyway.

    Proud Master CH -
    Sorry,
    Proud FORMER Master CH...
    my toon was untimely converted into something more Star Warsy

  • dookseiddookseid Member Posts: 282

    I think you'll see more of the Microsoft effect.  While the PS3 may not sell well in the states, people in Japan won't touch the XBox while they wait with much anticipation for the PS3.

    I for one do think alot of folks here in the states will latch on to the PS3 though,  they may just wait a few months to do it...

  • miagisanmiagisan Member Posts: 5,156
    i still rather buy the ps3 over the xbox due to their titles. ps3 has a wider variety of quality games, while microsoft has a smaller number of quality games

    image

  • KzinKillerKzinKiller Member Posts: 625
    Bottom line is that Sony is gambling that game sales will be suffiicient to overcome the staggering loss they'll take on hardware sales, in an era when fewer titles than ever will be exclusive to their platform.  In the process, they are REALLY antagonizing their sales channel, especially in Europe where they left their distributors out in the cold for Christmas sales of PS3 because of production problems ... only Japan and U.S. will get this box for Xmas and in the U.S. they won't get the numbers anticipated.

    This is not how a company that has its act together does business ...


    image

  • RekrulRekrul Member Posts: 2,961


    Originally posted by Wildcat84
    Sony can't even make a battery right much less a MMO.




    And in related news:

    - Sony and DoD sign new contract. Sony to supply entire ground force with explosives. First order is expected to deliver 7 million units.
  • Wildcat84Wildcat84 Member Posts: 2,304
    Don't forget, we SWG exiles know how lazy game developers are.  The PS3 games will largely be ports of Xbox360, which will have been out nearly a year longer with a larger installed base of consoles and games, so even IF the PS3 has any advantage at all over Xbox (this is actually unlikely anyway) people won't see it in the games.



Sign In or Register to comment.