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Record loss for Sony predicted -- PS3 to blame?

The question in the subject line isn't really a question. The PS3, according to Bloomberg, is directly to blame for what's to be known as the biggest quarterly loss for Sony in four years. Pat yourself on the back, PlayStation 3. You're like that college student who keeps asking your parents for book money, then spends it on beer. You take and take, but you've got nothing to show for it. Yet. The lower than expected demand of the PS3 has been figured to blame for the expected loss of ¥75.8 billion ($629.3 million). This is a fairly significant increase from the previous loss in 2006 of ¥66.5 billion ($552.1 million).

Sir Howard Stringer recently said he planned to have a 5% raise in operating revenue by March of 2008, but that doesn't seem likely, says Bloomberg. "The 5 percent margin target is reachable if there is no price cut in the PS3 ... But I'm expecting a 20 percent price cut this fiscal year, and if that happens, the margin will not reach 5 percent." So, will there or won't there be a price cut? If there is, will more people buy the PS3 and surprisingly reach the margin, or will enough people pay full price for the system to attain it?

[via Gamasutra]

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Reader Comments

(Page 1)

1. Where's the spinmaster fanboy KingofWale when you need him.

This has to be Microsofts fault somehow, and this has to actually be wonderful news that is just so nuanced that we can't see the forest through the trees.



Posted at 5:22PM on May 15th 2007 by Devils Advocate

2. Maybe not the PS3 itself is the blame, but the worthless cr*p of an advertising campaign for the PS3. The PS3 could have sold itself!

Posted at 5:25PM on May 15th 2007 by Adrian vG

3. This analyst has a BUY rating on Sony...that would seem to indicate a positive view for Sony and its future.

Posted at 5:36PM on May 15th 2007 by Kspraydad

4. There goes that price cut lol

:)

Posted at 5:39PM on May 15th 2007 by John

5. oh yeah.. and it never ceases to amaze me how attentive xbox360 fanboys are to this site... isnt there a 360fanboy site for you assholes to stew in? Its not our fault you purchased a "next gen" system with 10 year old optical drive technology.

Posted at 6:03PM on May 15th 2007 by Otsego_Undead

6. How can anybody could be credible and say in an article: "The lower than expected demand of the PS3 has been figured to blame for the expected loss of ¥75.8 billion ($629.3 million)."

They loose money on every PS3 sold!!!!!! If they would have had a higher than expected demand, then the PS3 could have been blame for loss, because they would have lost more!!! Simple math... C'mon

Currently they loose $200 on every PS3 sold... Sure enough, if they would make $200 on every console and not selling any, then you could say bad PS3 sales are responsible for a loss....

Posted at 6:03PM on May 15th 2007 by Real Gambler

7. didnt i read somewhere (in a different post) that the PS3 is outpacing the PS2?

Posted at 6:03PM on May 15th 2007 by Otsego_Undead

8. @ Next Gen Gamer

Coming from a Wii Troll, that's pretty funny. What have we here, a Ménage à Troll?

Posted at 6:12PM on May 15th 2007 by Devils Advocate

9. "didnt i read somewhere (in a different post) that the PS3 is outpacing the PS2?"

PlayStation 2 Worldwide Shipments (as of March 23, 2001)
-Japan (Sony Computer Entertainment Inc.) 4.65 million units March 4, 2000 launch
-North America (Sony Computer Entertainment America Inc.) 2.76 million units October 26, 2000 launch
-Europe/PAL (Sony Computer Entertainment Europe Limited) 2.63 million units November 24, 2000 launch

Posted at 6:29PM on May 15th 2007 by mccomber

10. To starnos -

I had all the prince of persia's back on ps2 you dumbass!! Even the original pc game was unlockable bonus.

BTW typing in full caps makes you look like a 3yr old child/total moron! See you over at 360fanboy.com NOT!

Posted at 6:33PM on May 15th 2007 by alecks

11. Time to make a caps mod for Firefox. It instantly makes all caps posts set visibility: false.

Posted at 7:03PM on May 15th 2007 by Andir3.0

12. @Andir3.0

That would be cool...can you make it so that PLAYSTATION 3 gets automatically capitalized like it is supposed to be too?

Posted at 8:32PM on May 15th 2007 by Kspraydad

13. All the PS3 needs is some games! I have a 360 and a PS3 and enjoy both, but there are no games for PS3 besides Resistance and Motorstorm.

Posted at 10:19PM on May 15th 2007 by dalec

14. Nick, as usual, you're cracking me up.

It's strange to see someone in a "higher realm" admit that while they could possibly make some goal without a price cut, the price cut may be... INEVITABLE (move fingers like that CEO guy in the Simpsons).

@Devils Advocate #11 you are hilarious, awesome wordplay

Posted at 11:18PM on May 15th 2007 by John

15. "Coming from a Wii Troll, that's pretty funny. What have we here, a Ménage à Troll?"

I mention what's relevant to what is being discussed. I'm sorry if you can't comprehend that.

Posted at 11:48PM on May 15th 2007 by Next-Gen-Gamer

16. @12

Prince of Persia is enough to own a 360? But what about Calling All Cars and that one duck game on the PSN? Do they not matter just because they are on the PS3? Suddenly a remake is great on the 360 but remakes aren't good on the PS3?

And why do so many 360Fanboys come here anyways. They have the 360Fanboy site as well as this site. We leave them alone, why can't they do the same for us?

Posted at 12:15AM on May 16th 2007 by Vincent060

17. "And why do so many 360Fanboys come here anyways. They have the 360Fanboy site as well as this site. We leave them alone, why can't they do the same for us?"

I think its all the shit talking from the previous generation. Xbox and GameCube owners who transitioned into their sequels are extremely timid at this point. To some degree I can understand where they're coming from, but at the same time, stooping as low as those who mocked them the last generation is just outright dumb.

I know I did my fair share of Xbox/GameCube bashing. Not so much on the GameCube, as I respected the library of games. Xbox, on the other hand, was harshly trashed. Of course, when Bill Gates spends a year prior to launch saying it'll dominate the market, the console had it coming when it turned out to only release to killer apps.

Posted at 1:33AM on May 16th 2007 by Next-Gen-Gamer

18. Edit: *two* killer apps.

Posted at 1:34AM on May 16th 2007 by Next-Gen-Gamer

19. @ John

Thanks, I usually try to bring humor along for the ride.

@ Next Gen Gamer
"I mention what's relevant to what is being discussed. I'm sorry if you can't comprehend that."

Sure, I read that as well...was page 6 in the Troll Bible. I believe it was in the Wii section, under "proper responces for Wii Trolls on Playstation fansites".

Seriously, I just get tired of blind fanboys of all ilks. Each console has it's problems, including the Wii, and blindly defending those problems due to some perceived loyalty to a faceless corporation simply astonishes me. I hope to hell Sony pulls this out of the hat and doesn't become this gen's gamecube, because it will be the gamers who suffer.
Likewise, I pray to God everynight that the Wii runs out of steam, because I really don't want to be forced into playing last gen games on "next gen consoles", which could be the message it the Wii performs a blow out. Lastly, Microsoft did alot of things right, and they're blowing it too. They need to figure out that shipping shit hardware to consumers is going to bite them on the rear. Their downfall will be no less their own fault by going cheap as Sony's is by forcing the BR on gamers. If it wasn't for that damn BR player, they could have been priced in line with MS, and quite honestly, feel they would be the current console leader, no questions asked.

Posted at 12:47PM on May 16th 2007 by Devils Advocate

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