The PS2 is unquestionably one of the greatest successes of videogaming history. However, it appears that the high manufacturing costs of Sony's latest effort has negated all the profit they made from the PS2 hardware -- at least according to developer Dave Perry, with information obtained from research firm DFC Intelligence (via
1UP). It's estimated that the console, which cost Sony up to $260 of losses per system sold, has left Sony with a total loss of $3 billion in the PS3's life so far.
While these figures seem rather bleak, one has to note the careful language used in the report is specifically about hardware, not software. Ultimately, Sony's goal is to profit off of its first-party offerings, and the licensing fees imposed upon third party developers.
[Via
Joystiq]
Reader Comments (Page 1 of 1)
Kspraydad @ Aug 19th 2008 10:45PM
15 million x $5/month x 12 months = .9 billion/year
Awfully tempting.
Marztype @ Aug 19th 2008 10:45PM
They also fail to mention that the money estimate is from the PS2's first five years (they've obviously doubled profits since then, they just keep selling). Overall it's no surprise, who else has launched with two experimental hardware features in the past?
Cory @ Aug 19th 2008 10:46PM
This guy is still around? When the last time he made a meaningful game?
Anywho while I doubt the numbers are 100% accurate it still is alarming. Sony definitely won't be as aggressive with the hardware for the PS4. Ofcourse they will eventually turn a profit on the systems but it will never match the PS2's success but then again not many can. I guess luckily for Sony they pump out a lot of good first party games.
Nineteen88 @ Aug 19th 2008 11:30PM
Sony is known for taking risks. Losing 3 billion won't change that fact. Hopefully we'll see greater innovations coming from them in the next generation of consoles too. Otherwise I'd be truly disappointed.
Luv U Sony. xoxo
iamkid @ Aug 19th 2008 11:32PM
well, thats what software is for i guess...but then again, nintendo probably profits off of the consoles as well, thats why they currently have way too much profit..at least theres still probably around 5 years till next system, so we'll be easily out of debt by then...in fact, imma buy a game later this week probably.
SuperGayParade @ Aug 19th 2008 11:32PM
lol what a d-bag!
My "inside sources" tell me he's got a hard-on for Microsoft
smastroyin @ Aug 19th 2008 11:43PM
I think part of the problem is that Sony doesn't even see the PS3 as merely a 7th gen game console. It will be impossible to know how much it is worth to them to have won the HD format war, which was won almost entirely due to Blu-Ray in the PS3. How much of each loss was the Blu-Ray player as opposed to a $5 DVD player.
Beyond that, the article mentions all of the things that make this factoid completely irrelevant, and then says "well that doesn't matter this is still an alarming number."
Da @ Aug 19th 2008 11:53PM
Microsoft has lost more on the 360 hardware than it lost on the xbox
Saeth @ Aug 20th 2008 4:18AM
Doubt it.. MS is making a profit off each console they sell.
Saeth @ Aug 20th 2008 4:23AM
Not to mention every console they sell has a chance of getting them to sign up for live... which is even more money.
Eggy @ Aug 20th 2008 6:13AM
Not really, MS made a 5-6 billion loss on the xbox.
Da @ Aug 21st 2008 12:29AM
Remember they've had to pump out $1 billion on replacements and extended warranty.
And unless you can show me true numbers, I would debate they're making a profit of the hardware.
SnazzyD @ Aug 20th 2008 12:18AM
This is suspect reporting at its finest. The numbers aren't the full data, just the first half as pointed out above. And the PS2 keeps chugging along, selling on par with the PS3.
None of the console makers make money off their hardware, and they are usually sold at a substantial loss. The investment pays off down the road through royalties, etc.
Hats off to Sony for continuing to innovate, even in the face of steep losses in the early goings, and shallow bell-tower reports like these...
ScroogeMcDuck @ Aug 20th 2008 2:11AM
False,Nintendo has made a bucket load of money off the Wii.
Burns11 @ Aug 20th 2008 12:32AM
I get the feeling if you asked Sony 2 years ago if they would pay $3 billion to win out against HD-DVD and retain all their patents the answer would have been a resounding yes.
Jamesology @ Aug 20th 2008 2:03AM
No matter how much I love my PS3, which I bought CHEAP at craigslist. The PS3 intro price was INSANE. i would NEVER pay 699 for a system even if it was a 360 or a Wii. If they would just stop and think, what kind of parent would pay that kind of money to play video games? Most of them didn't care what Blu ray was, heck they didn't even know what it is.
Eddie @ Aug 20th 2008 11:19AM
699 I agree, however I don't for a second regret my 499 mgs4 combo.
ScavengeR_Ro @ Aug 20th 2008 3:26AM
And where is the news???? Probably this is to be expected in the console market... and let's RECAP: PS1 won because of CD, PS2 won because of DVD, PS3 probably will win because of Blu-RAY!
COnclusion PS4 (2015 release date me guesses) probably will win because of ultratronic megafantastic holographic cartridge!!!
Bobulous @ Aug 20th 2008 8:04AM
Does anyone still listen to Dave Perry anymore? Every few weeks he opens his mouth only for more bullshit to spew forth. The man's an idiot. He's just bitter because his games are shit.
Kid Chemical @ Aug 20th 2008 10:30AM
WHAT?!?
You didn't love his work with Acclaim on those horrible online dance games?
Seriously. Dave Perry was brilliant PC programmer. Now, he's just an outsider looking in.
Zim @ Aug 20th 2008 8:38AM
I dont think the ps4 will be using any kind of media.
Its all gona be downloadable content.
Bibbly53 @ Aug 20th 2008 11:56PM
Pure speculations.
From a manufacturing standpoint that's a flawless low cost idea.
But from a hardware standpoint . . . 500GBS to at least one terabyte would be expected and priced accordingly for all new computers. I mean consoles! Consoles!
GP @ Aug 20th 2008 8:50AM
Where's the news? Sony put together a high end gaming system, initially at $699 and knew very well that it was loosing money on each and every system. Then they tweaked their game plan and have taken out ps2 compatibility and now the price has been lowered by $300. With a price drop like that it looks to me they've got things under control.
People seem to forget about the royalties Sony gets from software, BR movies, and now online movies. That IS where gaming makes their profits. They also have a tried platform that is outlasting everyones expectations, the ps2. Now that is just the best marketing anyone would want for their current system. With as many great games coming out on the ps3 their is no doubt in my mind that this will be a 3 peat of success.
Jon @ Aug 20th 2008 3:41PM
40% of all statistics are inaccurate....haha