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**Rs0n1sT** · 10-26-2007, 02:34 AM

Sony's game division is losing a lot of money.

The company's game unit saw operating losses more than double last quarter, going from $378 million last Q to $841 million this Q.

Sony said the losses are "due to the loss arising from the strategic pricing of [the PlayStation 3] at points lower than its production costs and PS3-related inventory write-downs." Ouch. So, basically, Sony loses money on each PlayStation 3 then sell, and also loses money when not enough PS3s sell. Ouch, again.

Seemingly, the idea of taking a loss on each console sold and making up the money on the back-end when developers pay for rights to develop for the system isn't working so well at the moment, although, we'll know a lot more after this holiday season, when an assesment can be made on the effect of the PS3 price cut on sales. It's a roller coaster, eh?

As a whole, though, Sony is doing just fine: The three months ending September 30 saw the electronic giant beating analysts expectation with an operating profit of $787 million, up from a $180 Million loss the year before.

GameSpot.com: Sony game unit's Q2 losses double

i know how much u guys luv gamespot.. lol j/k

Grahf16 · 10-26-2007, 02:41 AM

Not surprised at all, with a shitload of people buying PS3's, and not that many people buying games for it (The real breadwinner), then it's really hard to recoup. If they started charging for online services, they will get their shit back REAL quick.

Dj Narcotics · 10-26-2007, 09:35 AM

Quote:

Originally Posted by Grahf16

Not surprised at all, with a shitload of people buying PS3's, and not that many people buying games for it (The real breadwinner), then it's really hard to recoup. If they started charging for online services, they will get their shit back REAL quick.

co-sign sony would make all that loss back if they charged for online play it most suck for them tho cause they lose money for every ps3 that's sold

mrdwilson78 · 10-26-2007, 11:30 AM

Fuck dat the online service is fine as it is you cant beat free thats how I got my PS3

mr_magnum_filler · 10-26-2007, 03:04 PM

sony should have known it was stupid to charge 600 dollars for a game system in the first place!

400 was bad enough, but 600?

with NO GAME?

that's just wrong no matter how yo ulook at it

In$anity · 10-26-2007, 03:28 PM

The PS3 is a games console as well as a Blu Ray player. They hope you buy Blu Ray and Games, and that's how they'll make their money. I know that this Christmas i'm gonna buy a couple of blu ray films. I've got like 5 PS3 games. I've spent over £1,300 this year on gaming..... so Sony haven't lost money as far as i'm concerned !

Grahf16 · 10-26-2007, 03:50 PM

It's like PSP all over again.

They sell you a PSP expecting to buy games and UMD movies :<.

Nyx__ · 10-26-2007, 03:55 PM

Quote:

Originally Posted by Grahf16

It's like PSP all over again.

They sell you a PSP expecting to buy games and UMD movies :<.

Except Blu-Ray is actually outselling HD DVD 2-1 in the USA, and 4-1 in Europe.

Grahf16 · 10-26-2007, 03:56 PM

I'm pretty sure they sold a shitload of UMD movies as well.

In$anity · 10-26-2007, 04:00 PM

^^^

the hell is up wit your Sony + PS3 + PSP hate????

Have you even played a movie on the PSP? It's crystal clear and sound quality is excellent...

I've watched many films on it. It's great...

10-26-2007, 02:34 AM	#1 (permalink)
Rs0n1sT RGFMod Join Date: Mar 2007 Location: BK/NYC/718 Posts: 9,792	Sony's Game Unit Loses Dollars Sony's game division is losing a lot of money. The company's game unit saw operating losses more than double last quarter, going from $378 million last Q to $841 million this Q. Sony said the losses are "due to the loss arising from the strategic pricing of [the PlayStation 3] at points lower than its production costs and PS3-related inventory write-downs." Ouch. So, basically, Sony loses money on each PlayStation 3 then sell, and also loses money when not enough PS3s sell. Ouch, again. Seemingly, the idea of taking a loss on each console sold and making up the money on the back-end when developers pay for rights to develop for the system isn't working so well at the moment, although, we'll know a lot more after this holiday season, when an assesment can be made on the effect of the PS3 price cut on sales. It's a roller coaster, eh? As a whole, though, Sony is doing just fine: The three months ending September 30 saw the electronic giant beating analysts expectation with an operating profit of $787 million, up from a $180 Million loss the year before. GameSpot.com: Sony game unit's Q2 losses double i know how much u guys luv gamespot.. lol j/k __________________

10-26-2007, 11:30 AM	#4 (permalink)
mrdwilson78 Underboss Join Date: Dec 2005 Posts: 1,038	Fuck dat the online service is fine as it is you cant beat free thats how I got my PS3 __________________

10-26-2007, 03:28 PM	#6 (permalink)
In$anity Rap GodFather Join Date: Dec 2005 Location: sin city Posts: 10,757	The PS3 is a games console as well as a Blu Ray player. They hope you buy Blu Ray and Games, and that's how they'll make their money. I know that this Christmas i'm gonna buy a couple of blu ray films. I've got like 5 PS3 games. I've spent over £1,300 this year on gaming..... so Sony haven't lost money as far as i'm concerned ! __________________ nothin more to say

10-26-2007, 04:00 PM	#10 (permalink)
In$anity Rap GodFather Join Date: Dec 2005 Location: sin city Posts: 10,757	^^^ the hell is up wit your Sony + PS3 + PSP hate???? Have you even played a movie on the PSP? It's crystal clear and sound quality is excellent... I've watched many films on it. It's great... __________________ nothin more to say

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10-26-2007, 02:41 AM	#2 (permalink)
Grahf16 Rap GodFather Join Date: Jun 2006 Location: Lone Star State Posts: 6,148	Not surprised at all, with a shitload of people buying PS3's, and not that many people buying games for it (The real breadwinner), then it's really hard to recoup. If they started charging for online services, they will get their shit back REAL quick.

10-26-2007, 03:04 PM	#5 (permalink)
mr_magnum_filler Rookie Join Date: Oct 2006 Posts: 48	sony should have known it was stupid to charge 600 dollars for a game system in the first place! 400 was bad enough, but 600? with NO GAME? that's just wrong no matter how yo ulook at it

10-26-2007, 03:50 PM	#7 (permalink)
Grahf16 Rap GodFather Join Date: Jun 2006 Location: Lone Star State Posts: 6,148	It's like PSP all over again. They sell you a PSP expecting to buy games and UMD movies :<.

10-26-2007, 03:56 PM	#9 (permalink)
Grahf16 Rap GodFather Join Date: Jun 2006 Location: Lone Star State Posts: 6,148	I'm pretty sure they sold a shitload of UMD movies as well.