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AFHUB • View topic - Sony has lost over $3 billion on the PS3
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Post Posted: Fri Jun 27, 2008 1:43 pm 
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From: http://videogames.yahoo.com/feature/son ... s3/1223467

Think you paid too much for your Playstation 3? Don't expect any sympathy from Sony.

In the company's fiscal 2008 annual report, Sony revealed that they've now lost roughly $3.3 billion (that's billion with a B) on the Playstation 3 since its launch. That breaks down to $2.16 billion in 2007, followed by a notably smaller but equally daunting $1.16 billion loss in 2008.

The reason? Pricing the console below its production cost. That's right - that hefty $599 you paid for the PS3 back when it first launched was significantly cheaper than the cost of producing it in the first place, and while the retail price has come down some, the losses keep piling up.

Investors have reason to sweat. In a statement, Sony claimed "the large-scale investment required during the development and introductory period of a new gaming platform may not be fully recovered." They went on to note that they've invested a great deal of money into R&D for the console, a sum they might not be able to recoup if the PS3 "fails to achieve such favorable market penetration."

Sony fanboys should take heart, however. Losing money on hardware is relatively common in the video game biz, as companies routinely lower prices to sell more units and thus stimulate software sales. Sony's game division saw a 26% sales spike last quarter, a trend they expect will continue on the strength of strong exclusives like the recently released Metal Gear Solid 4 and the upcoming sequel Resistance 2.

But will it be enough?

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Post Posted: Fri Jun 27, 2008 6:29 pm 
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I sympathize with SONY... But as the recent media format war was decided upon with BLU-RAY winning the battle, it may turn the tide drastically in favor for Sony... People will surely deicde to get a PS3 rather than a plain Blu-Ray disc player which practically come identical price-wise.

And, may I reiterate, with the recent launch of the PS3 Bundle of METAL GER SOLID 4, having a boasting 80GB memory and backwards compatibility (considered to be a console seller) it wont be long til sony will make a comeback (hopefully)...

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