The Sony Hardware Reciprocal: PS3 losses surpass PS2 profits

[Master X]

According to DFC intelligence figures cited by Dave Perry, Sony has lost more money on the PlayStation 3 hardware than it made on the PlayStation 2 during its five most popular years. In pure numbers speak it's lost $3 billion on the PS3, which is about equivalent to everything it made selling PS2s during its peak years. This story would actually have a lot more impact if Carl Sagan was around to say "beelyuns."

Perry, best known for his stint at Shiny Entertainment, was speaking at the really long-named Games Convention Developers Conference, which appears to be both a Convention and a Conference, and was just using the figures to underscore how much Sony was spending on hardware development. However, the 1UP article doesn't mention until near the end that the original PS2 lost money in its first year, and that Sony (and the other console makers) does this so it can make bank on the software/games that people need to fuel their systems.

In all fairness, the article goes on to explain that Microsoft lost $4 billion on the original Xbox, and has had to spend over $1 billion replacing faulty hardware in the 360 and extending the warranty for original purchasers. So, we tend to think $5 billion trumps $3 billion. The real winner in this struggle? Nintendo. It has been churning a profit on that little Wii since it hopped out of the gate. Rassin' frassin' wand-wagglin' profiteers.

Atleast the 360 IS making a profit now on wach 360 sold.

We all know the first xbox lost alot but MS is making up for that now.
http://www.joystiq.com/2008/08/19/th...s-ps2-profits/

[BBM128]

Sony only has to make up 3 billion. Microsoft has to make up for 5 billion. It'd be interesting if they both hit black ink for SI at the same time.

[SoylentGreen]

Microsoft are ALONG way from making any money. It's been explained to you many times, Microsoft have pulled a con, they hid all their losses in a single quarter last year, and wrote them off, and then jump up and down and then proclaim now they are making money. Clearly thats just dumb. Until they make back the 5billion that the original XBox project lost, the 3billion the 360 costto develop, and the 1.15billion that the RROD cost them, they arn't making a cent. They won't be either for a VERY long time.

If you want to see another XBox, you should hope the shareholders don't revolt over the monet Microsoft is pouring into the bottomless Xbox hole...

What you are saying, is the PS2 profits for the last few years, has paid for PS3 development costs and the initial losses on hardware (which are earnt back in software sales and licencing). You also still have the very profitable PSP..

If I had money invested in both Microsoft and Sony, I would be FAR happier with Sony's performance right now...

[Indy_aka_Rex]

Those are profits from the first 5 years of the PS2's lifespan, last I checked, we're on the 8th. Not to mention, Sony LOST on the PS2 for its first 2 years out, so in other words... these numbers are highly misleading.

Out of the first 5 years of the PS2's lifespan, 3 are actually profitable, and we're now on its 8th total year, meaning... this doesn't account for profits made between 2005 and 2008.

[HD Halo X]

Green you don't know shit, you talk you do but its clear you do not.
MS is doing fine with the 360 now. So stop with all your BS.

I doubt you even played a 360 before, why must you hate in every xbox thread. I try not to dis on people but ever since I came here you have been the number 1 Sony bot.

Just get both. I love my PS3 and 360, why must you always hate.

[Indy_aka_Rex]

Originally Posted by HD Halo X

Green you don't know shit, you talk you do but its clear you do not.
MS is doing fine with the 360 now. So stop with all your BS.

I doubt you even played a 360 before, why must you hate in every xbox thread. I try not to dis on people but ever since I came here you have been the number 1 Sony bot.

Just get both. I love my PS3 and 360, why must you always hate.

Microsoft is a LONG way from being "fine" on its Xbox division. That division alone is still 5-6 billion in debt. The 360 having one profitable year, isn't going to erase th at debt, HD.

[AnimalMother]

Originally Posted by Master X

Atleast the 360 IS making a profit now on wach 360 sold.

So is Sony.

[hdinred]

Originally Posted by AnimalMother

So is Sony.

What is your source? Last I read, they were still losing money on each unit, although less than before.

Sony expects to sell fewer PS3s in the next year, and could be losing $260 per PS3 shipped - May 2008

[Ghost of Vincent Price]

Originally Posted by Indy_aka_Rex

Microsoft is a LONG way from being "fine" on its Xbox division. That division alone is still 5-6 billion in debt. The 360 having one profitable year, isn't going to erase th at debt, HD.

Umm do you really think MS is worried at all about xbox sales? Seriously? MS is about 14 trillion times bigger than Sony. They are like Nike moving in on the skateboarding crowd. Any profit is more than what they would of made if they never made a move at all. Plus remember live is pulling them money every month alone.

[recmasters]

Originally Posted by Master X

Atleast the 360 IS making a profit now on wach 360 sold.

We all know the first xbox lost alot but MS is making up for that now.
http://www.joystiq.com/2008/08/19/th...s-ps2-profits/

HD DVD is DEAD and so soon shall be your precious 360.

[Darkfalz]

Last fiscal year, Microsofts Xbox business was in the black - dispite a 1 billion dallar write off.

This year, Microsoft looks to be on a perfect path to make money once again.

While Xbox 1 lost money for Microsoft (And allot of it), the 360's business is working fully in the black. That means that with each passing day, Microsoft closes in on its total losses from Xbox 1.

PS3, on the other hand, is still a business operating in the RED. Massively. Reports indicate they're still likely losing money on PS3's being sold, and MS has been making money on Premiums for the past 2 years.

...yeah, it's not likely we'll see any PS3 price cuts any time soon...

...and if we're looking at generation over generation, Microsoft is in *WAY* better shape than Sony. MS has increased marketshare, become the leader in consumer dollars spent, and has become a profitable business... Sony's lost market share dramatically, lost billions of dollars, and is still losing money...

[AnimalMother]

Originally Posted by hdinred

What is your source? Last I read, they were still losing money on each unit, although less than before.

It's been profitable for over a year. The new 80GB is even cheaper to produce.

Sony can cut prices because the company has fixed production problems with a diode used in the PlayStation 3's Blu-ray disk player, said Tretton, who is based in Foster City, California. He declined to discuss costs for the console.

Clearing up the trouble made PlayStation 3 profitable several months ago, giving the company room to cut prices, analyst Doherty said. Microsoft still loses money on each Xbox 360 it sells, he said.

http://www.bloomberg.com/apps/news?p...ipo&refer=home

[SoylentGreen]

Originally Posted by hdinred

What is your source? Last I read, they were still losing money on each unit, although less than before.

No, because they manufacturered 10m units last quarter, made a massive loss, stuck them in a dark room, and got them back out this quarter. sold them all for $399, but they cost nothing to make.

That's as a identical scenario to the claim that Microsofts now making profit all of a sudden..

[Linderman Corp.]

Originally Posted by recmasters

HD DVD is DEAD and so soon shall be your precious 360.

UMD is dead and the psp still works...

[RedRedSuit]

Originally Posted by Darkfalz

PS3, on the other hand, is still a business operating in the RED. Massively.

You are making this up. SCE has been profitable for the last 2 quarters, at least.

Failure.