Sony's game division loses $654 million

[Badger3920]

Well i think this is a clear case of hoping that the traditional model of console gaming works. Sell for a loss up front, and reap profits later.

Selling 3 million PS3's recently (1 in 9 of all ps3's sold) is highly impressive, and sure, so is the debt it creates.

Now, if each one of those new ps3's has 1 game, or 1 blu-ray, or more -- bought for it this holiday season, the reasons for this thread might be more moot.

[Elitheos]

Originally Posted by hdinred

For $654 million, Microsoft can literally give away 3.2 million arcade units. But I'm not sure many here would consider that a successful business..

Nice point, except Sony didn't give them away. They sold them at the same price point or even higher than MS does and still outsold the 360. Nice try pinning the loss on the PS3 since that would mean every single PS3 would have to be sold at a loss of over $200 and they would also have to not make any profit on all games and acessories for that to be true. VAIO is an overpriced high-end brand that gets lumped into Sony's game division. And just like Bravia did, VAIO needs to drop their high-end image and start competing with the bargain brands like Samsung and Vizio. I don't know anyone who owns a VAIO.

[murphjp]

So anyone here willing to bet me about next Sony report? I say the PS3 division will turn a profit in Q3(Oct-Dec).

I would also be willing to do a double or nothing bet again for Q4(Jan-Mar) since I do believe Sony PS3 division is going to post 2 profitable quarters in a row.

[james]

Originally Posted by Badger3920

Well i think this is a clear case of hoping that the traditional model of console gaming works. Sell for a loss up front, and reap profits later.

That type of business philosophy seems applicable to the first year or two after launch, not so much anymore. The fact the PS3 is still not turning a profit is a point of concern.

No amount of spin can change that.

[hdinred]

Originally Posted by murphjp

So anyone here willing to bet me about next Sony report? I say the PS3 division will turn a profit in Q3(Oct-Dec).

I would also be willing to do a double or nothing bet again for Q4(Jan-Mar) since I do believe Sony PS3 division is going to post 2 profitable quarters in a row.

LOL, I thought you were going to say: "this loss isn't as much as I expected"

[CorruptedDragon]

Originally Posted by Elitheos

So let them. I'm sure you'd be one of the first ones here congratulating them on increasing their lead.

So sales DO matter now more than profit! Interesting!

[Elitheos]

Originally Posted by CorruptedDragon

So sales DO matter now more than profit! Interesting!

I've always said the Wii won this gen.

[Slayer]

Originally Posted by CorruptedDragon

So sales DO matter now more than profit! Interesting!

It's a moving target. Whatever suits the SDF best.

[Elitheos]

Originally Posted by Slayer

It's a moving target. Whatever suits the SDF best.

You out to be thankfull. If SDF just stuck to quality>all else you MAD guys would have lost this gen a long time ago.

[Dennis M.]

Originally Posted by CorruptedDragon

So sales DO matter now more than profit! Interesting!

As said above, it's a moving target. First it was graphics, then reviews, then sales, now it's profits. We'll keep you posted if anything changes.

[Slayer]

Originally Posted by Elitheos

You out to be thankfull. If SDF just stuck to quality>all else you MAD guys would have lost this gen a long time ago.

Maybe you should bring up RRoD. Havent seen that yet in this thread.

[Godstar]

Originally Posted by james

That type of business philosophy seems applicable to the first year or two after launch, not so much anymore. The fact the PS3 is still not turning a profit is a point of concern.

No amount of spin can change that.

Which further gets obfuscated when you have other elements in the division that have little to do with the PS3 or 360.

[Elitheos]

Originally Posted by Slayer

Maybe you should bring up RRoD. Havent seen that yet in this thread.

Nah, I'll just bring up quality of this years exclusives. I'll save quality of next years exclusives for another time.

[CorruptedDragon]

Originally Posted by Godstar

Which further gets obfuscated when you have other elements in the division that have little to do with the PS3 or 360.

True, maybe the ps3 is losing even MORE money, and the other divisions are making money and negating some of that loss. Its quite feasible that it could have been over 1 billion in loss without them!

The Sony Hole just doesnt seem to have an end in sight!

[CorruptedDragon]

Originally Posted by Elitheos

Nah, I'll just bring up quality of this years exclusives. I'll save quality of next years exclusives for another time.

Strange that "quality" games dont seem to sell as well as those supposedly "non quality" games on the 360! OH SNAP! They say that customers vote with their wallets, and it seems that the 360 has won the election!