Thread: Truth finally coming out: Sony was willing to lose more money than Toshiba to win

This article fails that the PS3's main competitor in 2007 was the Wii and the Toshiba HD DVD players not the Xbox360. Amazing how people claimed Toshiba was losing hundreds of dollars (closer to $50) on the $200 A3's yet ignoring the hundreds of dollars Sony was losing per PS3.

Kudos to Sony--to the victor goes the spoils. (Too bad Panasonic, Pioneer, JVC, Warner, Disney, Fox, MPEG LA and others want their cuts, too!)

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About Ask a Pro

June 27, 2008 | by
Rachel Cericola


For those of you that think the PS3 is still too pricey, talk to Sony.
The company
recently announced


that they have lost $3.3 billion on the PlayStation 3 console since its launch.
Sony’s losses were approximately $2.15 billion in 2007, with another $1.15 billion this year. According to
Gamasutra


, the cost to manufacture the original incarnation of the console was too high. Sony had always hoped that software sales would cushion the blow. Despite those sales and other hardware adjustments, it will still take time before the company will recoup costs—if it does at all.
“Even if the platform is ultimately successful, it may take longer than expected to recoup the investment, resulting in a negative impact on Sony’s profitability,” reads Sony’s
annual report


to the Securities and Exchange Commission.
Sony originally offered the PS3 at a loss, in order to keep up with its main competitor, Microsoft’s Xbox 360.

Gaming Systems: PS3 Has Cost Sony a Boatload, by Rachel Cericola - Electronic House Product News





SONY CORPORATION

That can't be true!

Joe said the PS3 is making money!
Those are the wrong guys you are quoting! They know nothing!

On a serious note, if they break even this year, it will take them another couple years to recover those accumulated losses. Hopefully BD lives that long...

Diogen.

Thank You Captain Odious!

ALL game consoles lose money hand over fist at launch. Regular old school Nintendo’s in 1985 cost $600 to make and were sold at $200. Game sales make back the loss attributed to the console sale.

The main difference is that the PS3 has 2 revenue streams now (movies and games) and once Sony launches downloadable movies they will have 3. They will make their money back.

If you want to have a true comparison let's compare the loss taken from stand alone players to stand alone players.

I see some confederate soldiers are still fighting the civil war...

Too bad games for the ps3 went the way of the psp.. straight to poo..

Originally Posted by seminole2001

Thank You Captain Odious!

ALL game consoles lose money hand over fist at launch. Regular old school Nintendo’s in 1985 cost $600 to make and were sold at $200. Game sales make back the loss attributed to the console sale.

The main difference is that the PS3 has 2 revenue streams now (movies and games) and once Sony launches downloadable movies they will have 3. They will make their money back.

If you want to have a true comparison let's compare the loss taken from stand alone players to stand alone players.

Thats a cute way to play the game.

Originally Posted by db2

I see some confederate soldiers are still fighting the civil war...

Then it's probably time you visit your doctor and get better glasses...
Don't get upset: wisdom and failing eye sight usually go hand in hand...

Diogen.

Gosh Darn the PS3 is not making money on sale of each console well so is WII and XBOX the money is made on the games sold--these companys collect fees from folks who make games for their systems that is how they make money.

If Sony lost money on their stand alone player than the airtcle would make sense.

You ever notice how the usual suspects stay from threads like this? Talked all that crap about Toshiba losing money now where are they??? A lot of credibility they are showing. I expected as much.