Record loss for Sony predicted -- PS3 to blame?
by Nick Doerr 
{ May 15th 2007 at 5:00PM }
The question in the subject line isn't really a question. The PS3, according to Bloomberg, is directly to blame for what's to be known as the biggest quarterly loss for Sony in four years. Pat yourself on the back, PlayStation 3. You're like that college student who keeps asking your parents for book money, then spends it on beer. You take and take, but you've got nothing to show for it. Yet. The lower than expected demand of the PS3 has been figured to blame for the expected loss of ¥75.8 billion ($629.3 million). This is a fairly significant increase from the previous loss in 2006 of ¥66.5 billion ($552.1 million).Sir Howard Stringer recently said he planned to have a 5% raise in operating revenue by March of 2008, but that doesn't seem likely, says Bloomberg. "The 5 percent margin target is reachable if there is no price cut in the PS3 ... But I'm expecting a 20 percent price cut this fiscal year, and if that happens, the margin will not reach 5 percent." So, will there or won't there be a price cut? If there is, will more people buy the PS3 and surprisingly reach the margin, or will enough people pay full price for the system to attain it?
[via Gamasutra]
Reader Comments (Page 1 of 1)
Devils Advocate @ May 15th 2007 5:22PM
Where's the spinmaster fanboy KingofWale when you need him.
This has to be Microsofts fault somehow, and this has to actually be wonderful news that is just so nuanced that we can't see the forest through the trees.
Adrian vG @ May 15th 2007 5:25PM
Maybe not the PS3 itself is the blame, but the worthless cr*p of an advertising campaign for the PS3. The PS3 could have sold itself!
Kspraydad @ May 15th 2007 5:36PM
This analyst has a BUY rating on Sony...that would seem to indicate a positive view for Sony and its future.
John @ May 15th 2007 5:39PM
There goes that price cut lol
:)
Otsego_Undead @ May 15th 2007 6:03PM
didnt i read somewhere (in a different post) that the PS3 is outpacing the PS2?
Real Gambler @ May 15th 2007 6:03PM
How can anybody could be credible and say in an article: "The lower than expected demand of the PS3 has been figured to blame for the expected loss of ¥75.8 billion ($629.3 million)."
They loose money on every PS3 sold!!!!!! If they would have had a higher than expected demand, then the PS3 could have been blame for loss, because they would have lost more!!! Simple math... C'mon
Currently they loose $200 on every PS3 sold... Sure enough, if they would make $200 on every console and not selling any, then you could say bad PS3 sales are responsible for a loss....
Otsego_Undead @ May 15th 2007 6:03PM
oh yeah.. and it never ceases to amaze me how attentive xbox360 fanboys are to this site... isnt there a 360fanboy site for you assholes to stew in? Its not our fault you purchased a "next gen" system with 10 year old optical drive technology.
Devils Advocate @ May 15th 2007 6:12PM
@ Next Gen Gamer
Coming from a Wii Troll, that's pretty funny. What have we here, a Ménage à Troll?
mccomber @ May 15th 2007 6:29PM
"didnt i read somewhere (in a different post) that the PS3 is outpacing the PS2?"
PlayStation 2 Worldwide Shipments (as of March 23, 2001)
-Japan (Sony Computer Entertainment Inc.) 4.65 million units March 4, 2000 launch
-North America (Sony Computer Entertainment America Inc.) 2.76 million units October 26, 2000 launch
-Europe/PAL (Sony Computer Entertainment Europe Limited) 2.63 million units November 24, 2000 launch
alecks @ May 15th 2007 6:33PM
To starnos -
I had all the prince of persia's back on ps2 you dumbass!! Even the original pc game was unlockable bonus.
BTW typing in full caps makes you look like a 3yr old child/total moron! See you over at 360fanboy.com NOT!
dalec @ May 15th 2007 10:19PM
All the PS3 needs is some games! I have a 360 and a PS3 and enjoy both, but there are no games for PS3 besides Resistance and Motorstorm.
Andir3.0 @ May 15th 2007 7:03PM
Time to make a caps mod for Firefox. It instantly makes all caps posts set visibility: false.
Kspraydad @ May 15th 2007 8:32PM
@Andir3.0
That would be cool...can you make it so that PLAYSTATION 3 gets automatically capitalized like it is supposed to be too?
John @ May 15th 2007 11:18PM
Nick, as usual, you're cracking me up.
It's strange to see someone in a "higher realm" admit that while they could possibly make some goal without a price cut, the price cut may be... INEVITABLE (move fingers like that CEO guy in the Simpsons).
@Devils Advocate #11 you are hilarious, awesome wordplay
Next-Gen-Gamer @ May 15th 2007 11:48PM
"Coming from a Wii Troll, that's pretty funny. What have we here, a Ménage à Troll?"
I mention what's relevant to what is being discussed. I'm sorry if you can't comprehend that.
Vincent060 @ May 16th 2007 12:15AM
@12
Prince of Persia is enough to own a 360? But what about Calling All Cars and that one duck game on the PSN? Do they not matter just because they are on the PS3? Suddenly a remake is great on the 360 but remakes aren't good on the PS3?
And why do so many 360Fanboys come here anyways. They have the 360Fanboy site as well as this site. We leave them alone, why can't they do the same for us?
Next-Gen-Gamer @ May 16th 2007 1:33AM
"And why do so many 360Fanboys come here anyways. They have the 360Fanboy site as well as this site. We leave them alone, why can't they do the same for us?"
I think its all the shit talking from the previous generation. Xbox and GameCube owners who transitioned into their sequels are extremely timid at this point. To some degree I can understand where they're coming from, but at the same time, stooping as low as those who mocked them the last generation is just outright dumb.
I know I did my fair share of Xbox/GameCube bashing. Not so much on the GameCube, as I respected the library of games. Xbox, on the other hand, was harshly trashed. Of course, when Bill Gates spends a year prior to launch saying it'll dominate the market, the console had it coming when it turned out to only release to killer apps.
Next-Gen-Gamer @ May 16th 2007 1:34AM
Edit: *two* killer apps.
Devils Advocate @ May 16th 2007 12:47PM
@ John
Thanks, I usually try to bring humor along for the ride.
@ Next Gen Gamer
"I mention what's relevant to what is being discussed. I'm sorry if you can't comprehend that."
Sure, I read that as well...was page 6 in the Troll Bible. I believe it was in the Wii section, under "proper responces for Wii Trolls on Playstation fansites".
Seriously, I just get tired of blind fanboys of all ilks. Each console has it's problems, including the Wii, and blindly defending those problems due to some perceived loyalty to a faceless corporation simply astonishes me. I hope to hell Sony pulls this out of the hat and doesn't become this gen's gamecube, because it will be the gamers who suffer.
Likewise, I pray to God everynight that the Wii runs out of steam, because I really don't want to be forced into playing last gen games on "next gen consoles", which could be the message it the Wii performs a blow out. Lastly, Microsoft did alot of things right, and they're blowing it too. They need to figure out that shipping shit hardware to consumers is going to bite them on the rear. Their downfall will be no less their own fault by going cheap as Sony's is by forcing the BR on gamers. If it wasn't for that damn BR player, they could have been priced in line with MS, and quite honestly, feel they would be the current console leader, no questions asked.