I think sony is pretty darn smart...

[makotech222]

Anyone else agree with me? Ps3 starting price is like $600 and everyone hates it right? well, ps3 is still being sold out everywhere, which means, sony is making a much larger profit than microsoft with their xbox360s. So, i dont know why everyone is hating them. their just being smart. You can pretty much set any price for a new console from one of the major companies and still sell out around the world.

anyone agree with me? lol

[Chrono Archangel]

hahahaha Sony making a profit?
arent they losing around 200$ on each PS3 sold?

only Nintendo is making profit on each console sold. (maybe the Xbox360 now since the cost price has gone down since the release)

funny guy....

[hushypushy]

hahahaha, funny thread. Sony is losing craploads of money on the PS3, they are practically giving it away for $600. And just because it's sold out doesn't mean they've sold a lot of them. Big difference there.

And MS is probably making money off the by now, but I haven't really heard anything about it.

[TheCloudOfSmoke]

You know who's smart? The people who robbed the customers waiting in line for a on PS3 on its release day. Those guys knew that every single one of those people waiting in line before the store opened had at least $500-$600. That's smart.

[cel123]

sony is smart???

nintendo is smarter

[Keith]

Only person making profit off the PS3 are the e-bay sellers

[Book]

Why would sony lose 200$ on every PS3? Why would they keep selling it then? It doesn't make sense. Every product it sold at at least the manufacturing price.

[ChankastRules]

It just shows how little you know, they sell them at a loss to profit of the games.

[Sephi]

And beside its important not to lose even more customers to MS or Nintendo. Raising the price of a already expensive console might even scare more ppl away, so i think there kind off forced to lower the price to a acceptable level so people will buy the console and they can still have a chance of making profit out of them later on.

[Boltzmann]

That's right, Sony is losing money on every console sold (even more so in the 20gb model).

But that doesn't that they aren't smart. You can't say that until you see their long-term plans. The income from selling hardware isn't all that important - it's the software (games) that matters.

Reviewing their financial statements for the 2nd quarter, we can see that although they are recording a loss before income taxes, they have a positive cash flow (of non-trivial value, BTW), which signals a sound business strategy.

And looking at their stock prices over the last year (on Bloomberg.com - SNE), we can see that it's been quite stable, so we can deduce that shareholders are expecting the profits to keep on the same level. Plus, Sony's stock price has performed above the sector's average - another good indicator.

Now we must wait for their 2006 consolidated financial statements (and perhaps 2007Q1 too) before saying whether they're smart or not, but I'd bet on Sony.

[ChankastRules]

but I'd bet on Sony.

That would give you good odds at your favourite broker They have been doing really bad for quite a while now. All those people they fired might have made them do better this year though. I always wounder what all those sony employees did... and when I met one that was recently fired! It became clear that I was right to wounder what they did..... she had an education in software engineering or something like that.... and she couldn't even describe what she had done at the Sony office aside from... complaining about the lay-offs!

[D.D.]

Originally Posted by Boltzmann

<some smart stuff>

agreed. the fact of the matter is, nobody knows what state PS3 is in, but from Videogame Charts, they're not doing as bad as everything thinks they're doing.

[industrian]

Not to mention the fact that the console has only been out for 45 days.

[cloudsBro]

Originally Posted by industrian

Not to mention the fact that the console has only been out for 45 days.

I agree, give it a few more months and then see how the console wars is shaping up.

[hushypushy]

People are giving Sony a lot of crap, but the fact is that Sony's consoles have always sucked at launch and Nintendo's consoles always kicked ass.

.....but I still think Nintendo is gonna be on top. In fact, I might even go out on a limb here and say that Nintendo will finally, with the DS and the Wii, return as the king of gaming. I sincerely hope so.

[makotech222]

o, does making a ps3 cost more than making an xbox360? they seem to have the same hardware...

[Chrono Archangel]

the blu-ray that is in the PS3 is very expensive. I saw a Blu-Ray player go for around 1300$ CAD here... Insane

The hardware between the 360 and PS3 is completly different.
I do beleive MS is making a small pofit now. I will try to find a source for this.

[Excalibur]

Hahahaha ! Funny thread

[Boltzmann]

Originally Posted by D.D.

agreed. the fact of the matter is, nobody knows what state PS3 is in, but from Videogame Charts, they're not doing as bad as everything thinks they're doing.

That's right. And I think that we'll only be able to see how the story truly unfolds in the coming months.

BTW, I was hoping for Nintendo to flop again....

Originally Posted by makotech222

o, does making a ps3 cost more than making an xbox360? they seem to have the same hardware...

According to independent analysts, the X-Box 360 costs ~310 to build. So MS is still losing a bit for every console sold.

And since the Microsoft's entertainment division still records a sizable loss every quarter (>100 million in the 2nd quarter), the analysts are probably correct.

Of course M$ has a lot of cash flow to spare, so they can bid their time. Their entertainment division is truly negligible in their earnings statements.

[DB7]

The big test for the PS3 will be in three or four months time, people are willing to spend stupid amounts of money in the run up to Christmas to get the "must Have Present"

Will people still be willing to pay the current retail price in March/April? I don't think they will. Sony either needs to give the fact that the PS3 has a bluray player a massive promotions boost or lower the price to something around what the 360 is selling for.