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Sony eats a $3 Billion PS3 bullet.

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Old Jun 23, 2008 | 06:13 PM
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Sony eats a $3 Billion PS3 bullet.

This might eventually get pushed into the gaming section,
but I think it's interesting from a pure financial point of view.

I read before that Sony's insistance on putting Blu-ray into it's PS3s caused
it to win the Blu-ray/HD-DVD war, but caused it to lose the Console war.
I think it makes a lot of sense.

I wonder how long it'll take them to recover this money. I guess they will
eventually, with game sales / Blu-ray movie sales. There are enough blu-ray
movies that I'm finally considering getting a player.

http://kotaku.com/5018899/sony-lost-...e#viewcomments

- Frank
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Old Jun 23, 2008 | 06:18 PM
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I hate Sony. The corporate mentality there is terrible. I am glad they had to eat a stinky rotten egg on the PS3, and am sad they won the HD Disc war. They just don't give a damn about their customers.
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Old Jun 23, 2008 | 06:27 PM
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i kinda shocked. i thought they were doing well
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Old Jun 23, 2008 | 06:39 PM
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Old Jun 23, 2008 | 06:46 PM
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doesn't every company lose money on their consoles? and it supposed to be 'recouped' with income from game sales? I remember when the PS3 first came out they were saying actual production values of each unit was over $900 and being sold for $600 or something. It is not an uncommon practice, but this was the largest margin of loss any company has ever tried.

I think winning the format war is a much bigger win than the hit from money lost from PS3 sales.
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Old Jun 23, 2008 | 06:52 PM
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I like the Wii
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Old Jun 23, 2008 | 06:57 PM
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Originally Posted by Osamu
doesn't every company lose money on their consoles? and it supposed to be 'recouped' with income from game sales? I remember when the PS3 first came out they were saying actual production values of each unit was over $900 and being sold for $600 or something. It is not an uncommon practice, but this was the largest margin of loss any company has ever tried.

I think winning the format war is a much bigger win than the hit from money lost from PS3 sales.
+1

Anyone have the figures at to how much is spent annually on video games and DVDs?

Granted, Sony probably only get s few pennies for each Blu-Ray disc sold, but consoles are replaced every few years. Movie formats change much less frequently.
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Old Jun 23, 2008 | 07:04 PM
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Okay, I guess this is the norm. (?)
Microsoft has lost 4 billion on the xbox:

http://www.forbes.com/home/technolog...microsoft.html

That's just...... insane.

- Frank
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Old Jun 23, 2008 | 07:06 PM
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All of them take a hit on the consoles in hopes of making the money back on licensing for games and accessories. And of course who knows how they value having market share in this area.

Wasn't the wii the most profitable?
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Old Jun 23, 2008 | 07:06 PM
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PS3 is kicking ass in sales now it's the hot console at the moment especially with the release of MGS4 the future will only get brighter for the PS3.
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Old Jun 23, 2008 | 07:27 PM
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Originally Posted by Black CL-S 4-Life
PS3 is kicking ass in sales now it's the hot console at the moment especially with the release of MGS4 the future will only get brighter for the PS3.
I'm sure MGS4 is going to definitely boost sales, but last month's numbers show the Wii is still the #1 console as far as volume goes in the US. In fact, there were nearly twice as many Wii's purchased in May as PS3 and Xbox 360 combined (675,000 Wii's compared to around 209,000 for PS3 and 187,000 for Xbox 360). I think May was the first time PS3 sales surpassed the Xbox 360.
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Old Jun 23, 2008 | 07:28 PM
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Colecovision > PSx

IMO Sony reeks!
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Old Jun 23, 2008 | 07:32 PM
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a part of me doesn't like the Wii sales comparison vs the xbox and PS3

xbox and Ps3 is more geared towards hard core gamers.....where as the Wii is for everyone essentially and his a t a lower price point.....but again slightly low price but greater volume equals money.


in the long run Sony will make out, they may be losing money on a PS3 but they are making it up somewhere else. not to mention wiining the blue-ray hddvd war.....

i love my PS3
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Old Jun 23, 2008 | 07:37 PM
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Originally Posted by stogie1020
I hate Sony. The corporate mentality there is terrible. I am glad they had to eat a stinky rotten egg on the PS3, and am sad they won the HD Disc war. They just don't give a damn about their customers.
You mean you're sad that Apple, Dell, HP, Hitachi, LG, Matsushita, Mitsubishi, Pioneer, Philips, Samsung, Sharp, Sun, TDK, Thomson Multimedia, Twentieth Century Fox, Walt Disney Pictures, Warner Bros., and Sony won the HD disc war?
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Old Jun 23, 2008 | 07:40 PM
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Old Jun 23, 2008 | 07:42 PM
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someone is still bitter about the $200 he spent on an HD DVD player


just guessin
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Old Jun 23, 2008 | 07:49 PM
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Originally Posted by Osamu
someone is still bitter about the $200 he spent on an HD DVD player


just guessin
Not me...The HD movies are dirt cheap on amazon and ebay!
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Old Jun 23, 2008 | 07:53 PM
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i love our PS3. my brother and i have always been playstation oriented. i also thought that companies initially lose money on a console debut.
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Old Jun 23, 2008 | 08:15 PM
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honestly, im not impressed by the PS3's graphics "capabilities" its over priced and sony has always been about these damn proprietary formats, its totally unfair to the consumer and the xbox looks just as good as the ps3. as for them losing money because of this, they will earn it back once they monopolize the format war
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Old Jun 23, 2008 | 08:30 PM
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Go Sony!
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Old Jun 23, 2008 | 08:32 PM
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Originally Posted by Billiam
You mean you're sad that Apple, Dell, HP, Hitachi, LG, Matsushita, Mitsubishi, Pioneer, Philips, Samsung, Sharp, Sun, TDK, Thomson Multimedia, Twentieth Century Fox, Walt Disney Pictures, Warner Bros., and Sony won the HD disc war?

Exactly!

OK, I just don't like Sony.
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Old Jun 23, 2008 | 08:34 PM
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Originally Posted by DanL
I'm sure MGS4 is going to definitely boost sales, but last month's numbers show the Wii is still the #1 console as far as volume goes in the US. In fact, there were nearly twice as many Wii's purchased in May as PS3 and Xbox 360 combined (675,000 Wii's compared to around 209,000 for PS3 and 187,000 for Xbox 360). I think May was the first time PS3 sales surpassed the Xbox 360.
The Wii is for nerds and kids I'm talking about serious gamers here.
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Old Jun 23, 2008 | 08:41 PM
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Originally Posted by ChodTheWacko
Okay, I guess this is the norm. (?)
Microsoft has lost 4 billion on the xbox:

http://www.forbes.com/home/technolog...microsoft.html

That's just...... insane.

- Frank
that article was from 3 yrs ago.........im sure they've sold/profited alot since then.
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Old Jun 23, 2008 | 08:55 PM
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Sony is the evil empire of the consumer electronics world.
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Old Jun 23, 2008 | 09:47 PM
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Originally Posted by Black CL-S 4-Life
PS3 is kicking ass in sales now it's the hot console at the moment especially with the release of MGS4 the future will only get brighter for the PS3.

The Wii is outselling the PS3 and 360 by a significant factor.

Last month the Wii sold 700k consoles while the 360 and PS3 were both in the 200k range.

The PS3 is far far behind the 360 in third place in the US and most likely will never make up the gap as it launched a year later and has only outsold the 360 for only 2 months in almost 2 years.
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Old Jun 23, 2008 | 10:00 PM
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I heard the ps3 sales rose 180% from the last month after MGS4 was released, I knew the metal gear series is popular but I thought that was surprising. When these consoles become outdated in the future I wonder how the sales numbers will compare between the ps2 and 3, going to be a HUUGE drop.. I'm also really surprised that the PSP didnt take off like it was predicted, the DS is crapping allll over it in sales as well.
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Old Jun 23, 2008 | 10:54 PM
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Originally Posted by BigLizard
Not me...The HD movies are dirt cheap on amazon and ebay!


I only paid $50 for my 360 HD player, and as lizard said, they are dirt cheap on ebay!!
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Old Jun 23, 2008 | 10:56 PM
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oh nice
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Old Jun 23, 2008 | 11:15 PM
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Originally Posted by Black CL-S 4-Life
The Wii is for nerds and kids I'm talking about serious gamers here.
Mario kart takes some damn serious skill, shit is hard...
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Old Jun 23, 2008 | 11:35 PM
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Originally Posted by NiteQwill
Mario kart takes some damn serious skill, shit is hard...
thats because it takes everything that you know about racing................and throws it out the window, i hate losing to little kids in mario kart all the time
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Old Jun 23, 2008 | 11:40 PM
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I am sure that in the long run, winning the HD format war could spell much greater profits than the loss on the console. Similarly, the PS2 put the DVD format into mainstream use and Sony made huge amounts off DVDs itself.
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Old Jun 23, 2008 | 11:44 PM
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Just remember: Sony hates you.




Gawd, I love Metal Gear Solid 4.
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Old Jun 23, 2008 | 11:50 PM
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Originally Posted by Yumchah
Just remember: Sony hates you.




Gawd, I love Metal Gear Solid 4.
No, they hate you and only you.












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Old Jun 24, 2008 | 12:07 AM
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Originally Posted by 2000TaffetaTL
No, they hate you and only you.












Oh, I know it. I already mentioned how my PS3 has eaten 13 kittens and since opened up a hellgate on my bonus room in the second floor.


I spend about 2-3 hours each day beating back demons. It's terrible.
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Old Jun 24, 2008 | 12:07 AM
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Evil Dead taught me everything there is to know about fighting off monsters. Groovy.
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Old Jun 24, 2008 | 01:05 AM
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Originally Posted by Sly Raskal
All of them take a hit on the consoles

Wasn't the wii the most profitable?
All of them except the Wii.

According to the Financial Times, this direct profit per Wii sold may vary from $13 in Japan to $49 in the United States and $79 in Europe
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Old Jun 24, 2008 | 01:29 AM
  #37  
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I just bought a PS3, should help them out.


...seriously though, its a great system I had a 360 and sold it...Only reason I held onto it was for Halo, which ended up sucking.
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Old Jun 24, 2008 | 02:10 AM
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Only $3B!!? Should take them no time to recover that. The PS3 is great for blu-ray movies.
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Old Jun 24, 2008 | 08:10 AM
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I can't say Sony is the evil empire. I bought one of their HTIB's and it is fantastic and cheap. Plus the PS3 seems to be more "media-friendly" than it's competitors feature-wise.
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Old Jun 24, 2008 | 09:36 AM
  #40  
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i just bought a PS3 two weeks ago.

like many, i was sold on the $100 gift card offer. but i bought it mostly for the blu-ray capabilities but am afraid i'll get sucked into gaming too.

Originally Posted by AznX TL
thats because it takes everything that you know about racing................and throws it out the window, i hate losing to little kids in mario kart all the time


i lost to a kid that look like he was 9 at best buy.
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