PS3 Results in $5 Billion Loss

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Ah, it never ends!

http://www.edge-online.com/news/playstation-losses-since-ps3-launch-near-5-billion-report


PlayStation Losses Since PS3 Launch Near $5 Billion - ReportBy Tom Ivan


Sony’s games division has reportedly suffered almost $5 billion in losses since the company launched the PS3 in November 2006.

According to VG247, figures from Sony’s investor relations website show that total PlayStation division losses since the console’s release stand at $4.7 billion.

The report points out that the figure includes losses incurred by Sony’s VAIO business over the past two quarters. VAIO has been grouped with the PlayStation unit under the company’s Networked Products & Services division since the beginning of the platform holder’s current financial year a little over six months ago.

In comparison, the site claims that Microsoft’s Xbox division suffered losses of $4.2 billion in the four business years following the original Xbox’s November 2001 launch.

Earlier this week as part of its second quarter financial results, Sony said that its Networked Products & Services division had recorded a drop in sales and increased losses on a year-on-year basis. Declines within its games business were attributed primarily to “the impact of the appreciation of the yen as well as a decrease in unit sales of PlayStation 2 hardware and software”.
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Why? Every 3rd person seems to own one and several games. Games are expensive and yet they're making losses? :confused:
 
Yeah Microsoft and Sony are both at a loss becasue of the current state. Strange that Microsoft are at a 4.2 billion dollar loss even though I presume they aren't selling consoles at a loss? :confused: They are also making money from Live and all those add-ons. What are they doing wrong? :confused:
 
Xbox 360 made a profit ... the original Xbox was caught in the wake of the dominant PS2 hence the loss.
 
They were selling PS3's for a considerable loss...for a long time, PSP and TV panel sales also contribute to the bottom line...global recession and weak YEN didn't help too i'm sure..but the next 2 years is looking good for Sony with LCD Tv's, LED Tv's, 3D tv, Blu-ray and PS3...wonder if Home,psp-go and psp2 will be as successful...
 
What would worry me is if investors lose confidence in Sony's ability to recreate the magic of the PS2 and force the giant to drop console manufacturing altogether. It's happened before to many big companies, the only real exception so far has been Nintendo.
 
Sony is one of this 'use to be successfull companies'. LG is another. They will not completely die off but they won't be at the top either. Samsung is the king (for now). Japan has reached the limit - unfortunately for Sony. They should have never wasted so much resources with that useless blue ray format and cell phones ventures. With the ps3 sony tried to jump too far and clearly did not reach the other side of the river. The future looks bleak. Now they are loosing money all over. Just imagine what the interest on that 5000000000 dollar is :D And the yen is still getting stronger !
 
I'm sure someone will go on about the weak Yen and recession contributing to the continued loss the PS3 makes, but just remember the US Dollar has also dipped in recent times and the US has been hit far harder by the global recession.

The problem is the PS3 was priced to loose, and as I said before investors may insist on the whole gaming division being dropped if they don't turn this around soon. I would fear the Playstations days are numbers.

I agree with Gomario that the Bluray drive, and indeed the cell processor were launched to quickly, as charming as the may be it was a terrible business decision. Sony should have emulated the success of the PS2 and stuck with the same game plan.

Unfortunate, and the advances that Sony have made will definitely up the ante in the next gen of consoles. I do sincerely hope the Playstation 4 does become a reality because without competition we will be stuck with inferior equipment and games.
 
LOL ...dreaming bud, seriously, PS3 is maxed out, ND is a poor development studio, Sony is gonna close shop....it's getting more perposterous with every day...

I mean honestly, isn't this jumping to conclusions, is there even one blog suggesting that Sony is in danger of closing shop ?

Many companies were in the red this year....4 billion in Sony's language is not "bankcruptcy" figures !
 
Lemon369 said:
LOL ...dreaming bud, seriously, PS3 is maxed out, ND is a poor development studio, Sony is gonna close shop....it's getting more perposterous with every day...

I mean honestly, isn't this jumping to conclusions, is there even one blog suggesting that Sony is in danger of closing shop ?

Many companies were in the red this year....4 billion in Sony's language is not "bankcruptcy" figures !
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But it sure is enough to consider closing down a division that loses so much
 
Nduimiso said:
But it sure is enough to consider closing down a division that loses so much
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Unfortunately business is business and if investors and shareholders alike insist that such losses are unacceptable Sony may not have a choice. It will be a terrible thing to happen, in my opinion, but you couldn't blame the company either.
 
The report points out that the figure includes losses incurred by Sony’s VAIO business over the past two quarters. VAIO has been grouped with the PlayStation unit under the company’s Networked Products & Services division since the beginning of the platform holder’s current financial year a little over six months ago.
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I wonder what percentage of the losses were due to the VAIO?
 
Nduimiso said:
But it sure is enough to consider closing down a division that loses so much
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Which divisions ? I've only heard of the % sale of cell and cell manufacturing to Toshiba, but with the released spec's of high end panels using cell's and even multiple cells, it seemed to be a strategic and financial move ...
 
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