Sony Hopes for PS3 Profits by Next Year

[Jimmy 2004]

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:

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.

View at TechPowerUp Main Site

 

[snuif09]

:shadedshu dont dream sony

 

[Ravenas]

:shadedshu dont dream sony

It's not a dream, it's a reality. It's the sad truth about how Sony took a 1 year loss on the PS3 to have a format that is on the verge of winning over the market. The format I'm speaking of is Blu-ray. Sony knew exactly what they were doing the entire time.

 

[Dark_Webster]

It isn't any lie that Sony is losing money with their PS3, but Microsoft is also losing money with their Xbox360. Go figure why Microsoft hided their problem.

 

[newtekie1]

It isn't just Sony, Microsoft has needed to take a hit to be competitive also. The only one making a profit on the consoles is Nintendo. As time goes on, the production costs always go down and each console sold becomes a profit. They almost definitely made the money back, and then some, through licencing fees, software sales, and peripheral sales.

 

[Dark_Webster]

Sony is talking on reducing production costs... just one observation. WHY in the heck the PS3 has a 2.5 inch HD?
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.

 

[Ravenas]

Sony is talking on reducing production costs... just one observation. WHY in the heck the PS3 has a 2.5 inch HD? 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, and they would have like PS3 with 160GB disc or something like that.

With a 3.5", the console would have had to be bigger.

 

[newtekie1]

With a 3.5", the console would have had to be bigger.

And it would consume more power, and have to disipate more heat. If you want a 3.5" hard drive for your PS3, then buy one of the adaptors so you can use any SATA drive you want. They are only about $15.

 

[Ravenas]

Sony is talking on reducing production costs... just one observation. WHY in the heck the PS3 has a 2.5 inch HD?
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.

Actually there are 320gb 2.5" HDs. This is another beauty about the PS3. You don't have to buy proprietary overpriced harddrives from MS to put in your console.

 

[Dark_Webster]

With a 3.5", the console would have had to be bigger.

Perhaps, noticing that the interior of the PS3 is overcrowded, but it would be good.

 

[Ravenas]

Perhaps, noticing that the interior of the PS3 is overcrowded, but it would be good.

Not trying to start any arguements, however, the PS3 may be over crowded but it's the xbox that's always been known for the overheating problems.

 

[bruins004]

Hey dont forget that BluRay is also currently winning the battle slightly right now.
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.

 

[effmaster]

Maybe thats why the players for HD DVD were sooo cheap before xmas.

Its statements like this that show how uneducated people are becoming these days.

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

 

[Ravenas]

Its statements like this that show how uneducated people are becoming these days.

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

Warner's desicion was based on which format sold more this holiday season (they even said it themselves). Blu-ray outsold HD DVD 2-1 this holiday even with the HD-DVD price drop. So therefore, yes, it has everything to do with it.

 

[effmaster]

It isn't just Sony, Microsoft has needed to take a hit to be competitive also. The only one making a profit on the consoles is Nintendo. As time goes on, the production costs always go down and each console sold becomes a profit. They almost definitely made the money back, and then some, through licencing fees, software sales, and peripheral sales.

Microsoft has been making a profit on the 360 for quite some time now havent you heard: http://www.xbitlabs.com/news/multimedia/display/20061120132150.html

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)

 

[bruins004]

Its statements like this that show how uneducated people are becoming these days.

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

Warner def. had an idea before xmas and these sales that they were going to drop HD DVD.
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

 

[effmaster]

Warner's desicion was based on which format sold more this holiday season (they even said it themselves). Blu-ray outsold HD DVD 2-1 this holiday even with the HD-DVD price drop. So therefore, yes, it has everything to do with it.

You missed my point the $99 HD DVDs were not being sold because Warner was going to go to Blu Ray exclusively Warner hadnt told anyone their decision at that time yet, The fact that Blu Ray outsold HD DVD 2 to 1 (which im not going to argue with you about right now) was after the sales of the HD DVD players Toshiba wasnt selling their players for $99 because Warner was going to jump ship.

 

[effmaster]

Warner def. had an idea before xmas and these sales that they were going to drop HD DVD.
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

Excuse me but ive already taken Macroeconomics

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

 

[Ravenas]

You missed my point the $99 HD DVDs were not being sold because Warner was goping to go to Blu Ray exclusively Warner hadnt told anyone their decision at that time yet, The fact that Blu Ray outsold HD DVD 2 to 1 (which im not going to argue with you about right now) was after the sales of the HD DVD players Toshiba wasnt selling their players for $99 because Warner was going to jump ship.

Yes but the fact is, the HD DVD sells weren't as good as the Blu-Ray sales this holiday season even after Toshiba dropped their prices.

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".

 

[kwchang007]

Why is this turning into a next gen optical media flame thread? Whoever wins will win. If you already own a player, than you're stuck with that and if the other wins you have to buy the other one. That's life...unfortunately.

On the topic of the PS3...that's good news for Sony...they're really carried by their games...

 

[Ravenas]

Why is this turning into a next gen optical media flame thread? Whoever wins will win. If you already own a player, than you're stuck with that and if the other wins you have to buy the other one. That's life...unfortunately.

On the topic of the PS3...that's good news for Sony...they're really carried by their games...

Because the PS3 has a blu-ray player and blu-ray sales mean ps3 profit. Anyway, I'm done with that and your right hehe.

 

[effmaster]

Yes but the fact is, the HD DVD sells weren't as good as the Blu-Ray sales this holiday season even after Toshiba dropped their prices.

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".

Actually Warners quote at the Blu Ray tailgate party or whatever the hell it was, was closer to this: "The market may allow for there to be only one format in the comig months"

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

 

[acperience7]

Go SONY. Best of luck. I don't plan on buying a PS3 this year, but hopefully next year. Unless they start selling the 80GB version as a standalone package. Then I may get one this year.