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Old 08-25-2009, 07:51 AM   #1
pwnophobia
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Sony Losing Money on Each PS3 Slim Sold

Sony Computer Entertainment's boss, Kaz Hirai, admits that they are losing money on each PS3 Slim unit sold but has a broader outlook on the PS3 Slim and sales numbers.

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When asked if that was the case, Hirai told The Times Online: “If you’re just talking about the hardware alone, the quick answer is yes.

“I think the better indicator is to look at the business as a whole platform, to ask: are you profitable in terms of the hardware, software and peripherals. And the answer to that question is yes on a gross profit level since the last fiscal year.”
via MCV
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Old 08-25-2009, 08:30 AM   #2
boneyardweller89
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So I take it that $250 estimate was a little off?
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Old 08-25-2009, 08:38 AM   #3
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And they're just figuring out now that they should have been selling the PS3 for $299 from the get go.... They'd have a huge installed base by now, developers would be happy because they're selling games and Sony would be making tons on peripherals and everything else. I wonder how many PS3s would have been bought if it was originally priced at $299? Hindsight...
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Old 08-25-2009, 09:51 AM   #4
King Drewsky
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I'm not really sure how they are losing money. The thing looks like it's been put together with tinker toys.
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Old 08-25-2009, 09:51 AM   #5
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Quote:
Originally Posted by GraveMatter View Post
And they're just figuring out now that they should have been selling the PS3 for $299 from the get go.... They'd have a huge installed base by now, developers would be happy because they're selling games and Sony would be making tons on peripherals and everything else. I wonder how many PS3s would have been bought if it was originally priced at $299? Hindsight...
true, but it was supposed to be about the image. the 360 turned out to be the Ford/GMC/etc that most people have/default to, the Wii is the cheap/'cool' moped that all the kids want, and the PS3 was supposed to be the high end BMW/Porsche that the majority drools at.

works for cars, but apparently not consoles, well, at least the last part doesn't.

still, i tend to agree, if they priced that thing at 250 from the start, the typical choice would have been either a wii for the controls, or the ps3 for the higher resolution/blu ray capability. only tards would have wanted to buy a 360 and then pay more for online capability, AND not have HDMI built in, AND not have a hard drive by default, AND be locked to Microsoft for their hard drives, AND....

they blew it big time.
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Old 08-25-2009, 10:22 AM   #6
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I'm not going to argue the "blowing it" aspect as I definitely think an opportunity was blown. I just think it was blown in the planning and not the pricing. They priced it where they had to in order to not bankrupt the company. The mistake was cramming all that new tech into the console. Blu Ray might have been a good idea at the time but I think Sony will come to regret it in the long run. Cell processor was definitely a bad idea as it just added cost and the "bitching" factor as devs struggled to get power out of it.
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Old 08-25-2009, 10:26 AM   #7
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Quote:
Originally Posted by drakkarim View Post
true, but it was supposed to be about the image. the 360 turned out to be the Ford/GMC/etc that most people have/default to, the Wii is the cheap/'cool' moped that all the kids want, and the PS3 was supposed to be the high end BMW/Porsche that the majority drools at.

works for cars, but apparently not consoles, well, at least the last part doesn't.

still, i tend to agree, if they priced that thing at 250 from the start, the typical choice would have been either a wii for the controls, or the ps3 for the higher resolution/blu ray capability. only tards would have wanted to buy a 360 and then pay more for online capability, AND not have HDMI built in, AND not have a hard drive by default, AND be locked to Microsoft for their hard drives, AND....

they blew it big time.
I think Ken overestimated just how much we'd be willing to pay (work) for his baby.
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Old 08-25-2009, 10:31 AM   #8
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Works for cars because you drive them -in public-. Fashion is about public display. There's almost no public display for a PS3 and the slim looks like crap compared to the full anyway.

Sony is just limping through this console generation, praying for it to end. They haven't made a dime with the PS3 yet, and they probably never will. But hey, all of its losses make for some great tax write offs for Sony's other divisions :P
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Old 08-25-2009, 10:31 AM   #9
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Quote:
Originally Posted by GraveMatter View Post
And they're just figuring out now that they should have been selling the PS3 for $299 from the get go.... They'd have a huge installed base by now, developers would be happy because they're selling games and Sony would be making tons on peripherals and everything else. I wonder how many PS3s would have been bought if it was originally priced at $299? Hindsight...
I honestly don't see how it is such an easy choice as people make it out to be.

Not all loses are equal, there's certainly no way Sony could have taken a multi-hundred dollar loss to sell the launch technology at $299. Now, with reduced production costs, they can maintain a sustainable loss on hardware while selling at $299. What is possible today wasn't possible 3 years ago. Is that surprising?

You don't get to decide pricing in a vacuum devoid of actual production costs, at the relevant time.
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Old 08-25-2009, 11:02 AM   #10
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Kaz actually said this last week. It's not really news.
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Old 08-25-2009, 11:55 AM   #11
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at what points in its life did the ps2 make money on system sales?
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Old 08-25-2009, 12:32 PM   #12
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Quote:
Originally Posted by GraveMatter View Post
And they're just figuring out now that they should have been selling the PS3 for $299 from the get go.... They'd have a huge installed base by now, developers would be happy because they're selling games and Sony would be making tons on peripherals and everything else. I wonder how many PS3s would have been bought if it was originally priced at $299? Hindsight...
Umm... Sony could quite likely not exist as a company if they sold the original PS3 at $299 from day one. There's only so much negative margin you can handle, no matter how large you are.

Corollary: Sony should have been selling the PS3 for $1 from the get go. That would work even better!
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Old 08-25-2009, 12:39 PM   #13
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Umm... Sony could quite likely not exist as a company if they sold the original PS3 at $299 from day one. There's only so much negative margin you can handle, no matter how large you are.

Corollary: Sony should have been selling the PS3 for $1 from the get go. That would work even better!
- That would've been possible if the market could bear paying $120 / game, but it simply can't :P
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Old 08-25-2009, 09:43 PM   #14
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i know when i see a new ps3 slim i am going to buy one. just because. i really don't give a rat's ass if sony makes or loses money. i just want one.
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Old 08-26-2009, 03:31 AM   #15
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i know when i see a new ps3 slim i am going to buy one. just because. i really don't give a rat's ass if sony makes or loses money. i just want one.
Imagine that, i have no idea why the obsession with the inner working of a company. Its not like sony didnt know they would lose money on it when they put it together. Besides if a PS3 is a bimmer then a nice PC is an F1 car.
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Old 08-26-2009, 06:13 PM   #16
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Besides if a PS3 is a bimmer then a nice PC is an F1 car.
- So true ^_^ We could probably end all console wars by injecting the PC into the debate.
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Old 08-26-2009, 08:23 PM   #17
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Im glad he didn't say that we have to get another job or work harder to be able to afford it.
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Old 09-03-2009, 11:06 AM   #18
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Im glad he didn't say that we have to get another job or work harder to be able to afford it.
- Oh, but he was thinking it! You know how those Sony peeps be!
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