Tuesday, January 8th 2008
Sony Hopes for PS3 Profits by Next Year
It's been no secret that Sony has been losing money on each PS3 it sells, but the firm has now revealed that it is hoping to be making a profit from PS3 sales within the next fiscal year. Sony Computer Entertainment's chief executive, Kaz Hirai, said:
Source:
Reuters
We want to get to the positive side of the equation as quickly as possible. The next fiscal year starts in April and if we can try to achieve that in the next fiscal year that would be a great thing. We are going through the budgets right now. That (profitability) is not a definite commitment, but that is what I would like to try to shoot for.Hirai is hoping that lower production costs due to fewer components in the 40GB model will be the main factor in helping the console achieve profitability. The PS3 managed to sell 1.2 million units in North America over the Christmas period, which accounted for about 40% of total yearly sales.
22 Comments on Sony Hopes for PS3 Profits by Next Year
If it were a 3.5 inch things would be cheaper, and we, consumers would have the opportunity to change the HD whenever we want to(it is also possible with 2.5, but more expensive) , and they would have like PS3 with 160GB disc or something like that.
That is going to and is helping the PS3 sell.
Hell I got it for BluRay and some of the PS3 Only titles.
But with the word that Paramount may jump ship to BluRay will def. kill HD DVD.
Noone even knew that Warnwer would be jumping off of HD DVD at all in fact most tech companies and analysts were thinking that it would remain neutral or just go to HD DVD. The price drops and Fire sales on HD DVD players had nothing to do with Warner's decision:slap:
And thats form over a year ago , so Microsoft is probably making even more money off each 360 console. Dont judge so quickly my freind. It will be sometime after June 3oth that we finally see more massive price drops on the 360 since by then Microsoft expects its games division to have finally reached total profitability from the xbox and xbox 360 (remember the xbox lost microsoft a couple billion dollars over its lifespan and the 360 has made up all of that ground already)
Just look at the list of companies that support Blu Ray and HD DVD.
Not too many, even when Warner was with them, supported HD DVD.
Yes, they were even, but near the end of last year Blu Ray was slightly winning.
On top of that Blockbuster and many other video stores (brick and mortar) only carry 1 format - most of them BluRay at least around the city.
So due to this speculation would put a company leaving or at least supporting Blu Ray as well.
Its all about speculation that drives prices.
All of this affected the prices of HD DVD players, hence, why we saw them soooo low.
As for un-educated, I am sorry you think I am, but I am far from it.
Why dont you take an economics class or something and learn how things affect prices.
Sometimes I hate kids:nutkick:
The retailers decision had more part due to the fact that HD DVD players were and still are cheaper to manufacture and hence they could actually sell them for that cheap. It wasnt just so they could get rid of all the HD DVD players because if so then they would have stopped carrying the HD DVD players but they still havent yet:slap:
Warner said themselves they were going to go with whoever sold the most. While Toshiba might not have known this at the time (which in my opinion they probably did, because we're talking about the buisiness world here), they were still outsold. Toshiba wanted more sales the holiday season wether they knew Warner was going blu-ray exclusive or not.
But hey, I guess I can't be right with someone who "Excuse me but ive already taken macroeconomics".
On the topic of the PS3...that's good news for Sony...they're really carried by their games...
Toshiba also didnt know that Warner would be switching why else did they cancel their HD DVD news conference at CES this year? I can tell you, Its because Warner hadnt told them of its decision
Edit: Soorry kwchang Ill stop too now