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Sony shows PS3 production costs are dropping

DVDBack23 @ May 14, 2008 22:35 | 51 comments

Sony has reported that the PlayStation 3 is seeing gradually declining production costs and growing popularity of the console has led to a strong improvement on the company's balance sheet. Sony also noted that the company shipped about 37 million game consoles and more than 267 million games during the year.

Sony's "PlayStation" unit posted a $1.2 billion USD loss for the year, an improvement from the $2.3 billion USD loss the division posted last fiscal year. According to Sony, the decrease was primarily thanks to PS3 hardware reductions and the increasing sales of PS3 software and accessories.

For the fiscal year, there were 7.24 million PS3 units sold, up from 5.63 million in fiscal 2006. The PSP was even more popular, selling 13.89 million devices for a total of 41 million PSPs to date.

PSP software sales declined but PS3 software sales made up the difference. Total game units were 267.4 million, compared to 261.5 million in fiscal 2006.


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Comment by: ZippyDSM (May 18, 2008 02:07)

Originally posted by Troyjoe:
well that must mean there making actual profit now.
just wondering 2-3yrs from now the ps2 fanbase will upgrade?

easily if the new units have better BWC and are under 320.

Comment by: Gnawnivek (May 19, 2008 15:20)

Quote:
Originally posted by TSRSteve:
Sony blah blah blah. We need MORE GAMES and like nobrainer says quit trying to pass off all these old games as something special, they had their day already and they're not worth 10 bucks. What good is a kick ass console that only has mediocre games?

I haven't played a game on mine in weeks. The only thing I've been using mine for is playing bootleg Doctor Who videos I download from isohunt because I'm too impatient too wait for them to play here in the US. Maybe I'll just trade it in on one of those popcorn things.



I find those "need more games" comments for ps3 rather old. It has had many games been put on the market recently and has plenty more to follow.
But if you continue to complain can i just ask...what games would you like...


Make that two... The comment "no games for the PS3" is for crying babies now. Give me a freaking break, it might worked last year, but enough of that crap already, unless you're living your life one year behind or something.

Comment by: ZippyDSM (May 19, 2008 16:41)

Quote:
Quote:
Originally posted by TSRSteve:
Sony blah blah blah. We need MORE GAMES and like nobrainer says quit trying to pass off all these old games as something special, they had their day already and they're not worth 10 bucks. What good is a kick ass console that only has mediocre games?

I haven't played a game on mine in weeks. The only thing I've been using mine for is playing bootleg Doctor Who videos I download from isohunt because I'm too impatient too wait for them to play here in the US. Maybe I'll just trade it in on one of those popcorn things.



I find those "need more games" comments for ps3 rather old. It has had many games been put on the market recently and has plenty more to follow.
But if you continue to complain can i just ask...what games would you like...


Make that two... The comment "no games for the PS3" is for crying babies now. Give me a freaking break, it might worked last year, but enough of that crap already, unless you're living your life one year behind or something.


5 good games dose not make the PS3 worth 500$ >>

Comment by: Gnawnivek (May 19, 2008 17:02)

Quote:
5 good games dose not make the PS3 worth 500$ >>

Worth $500 or not is all subjective isn't it?

To me, PJ Monster is worth $500 alone :)

Anyhow, no, five good games probably not, but added values do, like Blu-ray and multimedia files.

Bottom line, if you don't have one, don't be a sour puss. if you don't want one, don't an ass. Not everything is designed for everyone or appreciated by everyone. Anti-consumer my ass, i never fully understand this term when used in this forum.

Comment by: lxhotboy (May 21, 2008 14:51)

Quote:
5 good games dose not make the PS3 worth 500$ >>

Zippy has a great point.


Quote:
Bottom line, if you don't have one, don't be a sour puss. if you don't want one, don't an ass.

Funny how someone would have the audacity to post basically telling people to be more mature and respectful with someones opinion when they dont agree with it and seem not to realise that they are acting in the same manner that they say isnot neccessary. Then they post this...

Quote:
The comment "no games for the PS3" is for crying babies now. Give me a freaking break, it might worked last year, but enough of that crap already, unless you're living your life one year behind or something.

again if you dont condone someone being an a** then start by practicing what you were trying to preach.


Quote:
Not everything is designed for everyone or appreciated by everyone.

Exactly...so if Zippy thinks that the PS3 currently isnot worth the money d/t the game library then that is his opinion but let me support his opinion by saying there are plenty of PS3 owners, and people who choose not to buy the PS3, b/c of the library of games needs to mature a bit. Sony's library is still young. Originally was going to buy a PS3 but the time didnot seem right after my cousin kept telling me to look at the games first. I kept an open mind, tried not to be biased and went online researching games, read many gaming magazines and i came to the conclusion that he was right. Microsoft had a lot of great games that i wasnot aware of and currently does have the best library.

Back on topic...I would love for Sony to drop the price of the PS3.
I miss Hotshots golf, and wish GOD of War 3, and Socum would be released sooner. I still plan to buy one just waiting on more games on the level of MGS4...Keep the games coming Sony...If you make them, they will come..LOL that is why sony had so much success with the PS2. If you think about it they are still having some success with the PS2 but with all the great games they still release for the PS2 they have to think it may be hurting PS3 sales. Ask yourself how many Sony fans have chosen not to buy into the next-generation console just b/c the PS2 has so many great games being released. With a possible price drop in the future and upcoming game lineup this could really be a plus for Sony. Maybe Sony wants socum released after COD4 calms down and then the PS3 price is cut. It would be very smart marketing stratedgy.

Comment by: ZippyDSM (May 21, 2008 15:04)

lxhotboy

uuu iz going to hates me for this...... 5 "good"games and 3 non PC games on the 360 dose not make an easy break oven worth 300$...... the premium dose not need to be more than 200$.

The PC still comes out better but tis not without its own set of problems but tis far more open than the 360 ever will be.

the WII is cute and all but its not worth 300$, it and the 360 need to be around 200 price v cost v quality thats the best balance, the PS3 needs to be 300/400 or just drop the god awful lower end unit and stabilize the price at 350 and leave it there for the reminder of model 1's exstistance.

Comment by: lxhotboy (May 21, 2008 16:49)

LOL...Naw dawg i dont hate you. I feel ya. Truth is that most people dont choose to play games on PC and also games on PC are going to get a lot more scarce in the future as developers are getting frustrated with the ease of piracy on PC. I read that there are so many PC gamers online, illegally, with COD4 that it is ridiculous. When you take into cosideration that when people mentions video games that most people dont even consider PC games should speak for its self. Not saying the games arenot great and maybe better on PC. But Wii, Xbox360, PS3 are designed specifically for gaming and advertised for gaming. You dont see ads everywhere in magazines and tv commercials trying to push off PC because we got this game and that game so the percentage of PC gamers in extremely small when compared to the others and really not even considered.

Comment by: ZippyDSM (May 21, 2008 16:59)

Originally posted by lxhotboy:
LOL...Naw dawg i dont hate you. I feel ya. Truth is that most people dont choose to play games on PC and also games on PC are going to get a lot more scarce in the future as developers are getting frustrated with the ease of piracy on PC. I read that there are so many PC gamers online, illegally, with COD4 that it is ridiculous. When you take into cosideration that when people mentions video games that most people dont even consider PC games should speak for its self. Not saying the games arenot great and maybe better on PC. But Wii, Xbox360, PS3 are designed specifically for gaming and advertised for gaming. You dont see ads everywhere in magazines and tv commercials trying to push off PC because we got this game and that game so the percentage of PC gamers in extremely small when compared to the others and really not even considered.

the only trouble is the 360 is easier to hack than PC games and when they start limiting installs and games to 1 account FOR CONSOLE GAMES the resale market will stand with the consumer but by then the market might go bust the trend bubble has to pop sometime.........

I hope as the PC markets shrinks it puts more people to make emulators... I;d rather wait 3 years to get a PS3/WII/360 emulator that half way works than deal with a ass crappy console.


For all the console/game fanboys out their.
http://www.escapistmagazine.com/articles...Console-Rundown
Oh god I can't stop laughing!!!
---
And for the format nazi's I bring you HHD DVVD BVD's!!

Comment by: Gnawnivek (May 21, 2008 18:10)

@lxhotboy

No offense, but most posts here at AD regarding PS3 are really all about "sour puss" and "ass."

It doesn't matter what your reasons are (games, price, anti-consumer etc.), as long as you're posting in a PS3 thread, deep down, you know you want one :)

Comment by: ZippyDSM (May 21, 2008 18:14)

Originally posted by Gnawnivek:
@lxhotboy

No offense, but most posts here at AD regarding PS3 are really all about "sour puss" and "ass."

It doesn't matter what your reasons are (games, price, anti-consumer etc.), as long as you're posting in a PS3 thread, deep down, you know you want one :)

Ya I'll take one for 200$ but not more than that thax*lick*

Comment by: goodswipe (May 21, 2008 18:31)

Originally posted by Gnawnivek:
@lxhotboy

No offense, but most posts here at AD regarding PS3 are really all about "sour puss" and "ass."

It doesn't matter what your reasons are (games, price, anti-consumer etc.), as long as you're posting in a PS3 thread, deep down, you know you want one :)

No, most posts like that are either from some lame ass fanboy or some newb that just wants to start trouble. I feel that you guys pick on nobrainer all the time, because deep down, you know he's right.

He has the same right, just like everyone else, to post his views about Sony, the PS3, or any other corporation for that matter as long as the news article relates to what he is talking about. His first post was informative as always about showing how screwed up these companies are. It had everything to do about the PS3 and why they can cut costs now. I don't see why he should be banned for that. Oner owns a PS3 I bet and is just trying to take out his aggression on him. And he obviously doesn't like the guy if you have read all his previous posts. Total abuse of power if you ask me.

Everyone just needs to chill out. You guys take the internet way to seriously. If you don't like reading what someone has to say, then don't read it!




"I hope Newbies that come across your signature bar do not become intimated and decide this forum is for wisecracks and stick to other ones." -ofield

Comment by: Gnawnivek (May 21, 2008 18:40)

@goodswipe

yes, you're correct, most posts are lame, fanboyish...

deep down, everyone is right :)

yeah, shouldn't take the forum too seriously... Last time i did that, i end up buying a hd-dvd add-on for the X360 :(

Comment by: goodswipe (May 21, 2008 18:41)

HAHAHA..you were the one that listened to hughjars right? I remember a conversation where you got on him for that.

Classic...just classic...




"I hope Newbies that come across your signature bar do not become intimated and decide this forum is for wisecracks and stick to other ones." -ofield

Comment by: Gnawnivek (May 21, 2008 19:04)

Originally posted by goodswipe:
HAHAHA..you were the one that listened to hughjars right? I remember a conversation where you got on him for that.

Classic...just classic...

During the HD format war, the hughjar dude got a lot of good points and a lot of fancy numbers. The dude got my respect, of course, until he ruined it himself... Anyhow, yeah, my first suspension :( (i swear, nothing mean, maybe just typed hughass instead of hughjar). Sorry guys/gals, just a bit of old history, i know it's OT, move on...


So many dvds, not enough times...

Comment by: ZippyDSM (May 21, 2008 19:09)

hughjars was alright ,altho once anyone starts smoking their own fumes and talking sht.... if they get baned its not that strange.

god knows I smoke mew own fumes but a least I get out of the pew now and then ....even if I still smell :P


For all the console/game fanboys out their.
http://www.escapistmagazine.com/articles...Console-Rundown
Oh god I can't stop laughing!!!
---
And for the format nazi's I bring you HHD DVVD BVD's!!

Comment by: Oner (May 21, 2008 21:32)

Originally posted by goodswipe:

No, most posts like that are either from some lame ass fanboy or some newb that just wants to start trouble. I feel that you guys pick on nobrainer all the time, because deep down, you know he's right.

He has the same right, just like everyone else, to post his views about Sony, the PS3, or any other corporation for that matter as long as the news article relates to what he is talking about. His first post was informative as always about showing how screwed up these companies are. It had everything to do about the PS3 and why they can cut costs now. I don't see why he should be banned for that. Oner owns a PS3 I bet and is just trying to take out his aggression on him. And he obviously doesn't like the guy if you have read all his previous posts. Total abuse of power if you ask me.

Everyone just needs to chill out. You guys take the internet way to seriously. If you don't like reading what someone has to say, then don't read it!


I own a lot of consoles (NES,SNES,N64,Wii,GB,PS1-3,PSP,Xbox & 360,DC plus more) so I don't know what you are trying to imply....either way I get on ANYONE's case who does nothing but change topics and post links to unproven misinformation with no sane reason other than to propagate some rationale that EVERYTHING corporate is "out to get you" oooohhh booga booga! Or that absolutely anything one specific console maker does is bad while others get a slight pass...

What I find funny is how you say people take things too seriously but yet take my posts too seriously? Whatever. I wonder how this place would be if we didn't handle things the way we do? My guess it would be more like Maxconsole or similar where everything is biased or probably each thread would be full of spammers and whiners, like most other places on the net...Thank God aD is more of a place like "tough deal with it" mentality, it keeps things VERY clean here, I am sure hundreds of THOUSANDS of members would agree.


And on that note lets get back on topic, if there is anything more to be said off topic take it to PM's.


Comment by: varnull (May 21, 2008 21:50)

Yeah.. Like I said first off.. The price drop is simple manufacturing economics.. add that to a machine which is seen as overpriced and sitting on the shelves because of poor selection of games and they have to do something.
So they drop a load of stuff and cut costs further.

Unfortunately the members of the media cartel and M$ don't have to play in the real market any more, the place where Toshiba and Samsung and people have to work.
Price fixing and monopoly is not good for anybody except the abusers.(It happens to be why most countries have laws to attempt to control this behaviour.. which is now being abused by bribing politicians by these same cartels) It stifles innovation and creativity, and we all suffer for it eventually.. give it 20 years and tell me I'm wrong.

I'm firmly in the anti-globalisation camp, and I'm far from alone. It's your money, spend it how you want.. It's your conscience you have to live with.




Free open source software = made by end users who want an application to work.... #1 image again.. check it out ;)

Comment by: Gnawnivek (May 22, 2008 02:36)

What i don't get is this... people complaint the PS3 is too expensive. So Sony cut the price, then people complaint it's not the same PS3 (i.e. BC). Okay, so now Sony can produce the PS3 cheaper and people still complaint. Well, i understand some of the points, like new ways to make something cheaper are not necessarily better. True true, but still, this is technology we're talking about. When is the last time you actually like old gadgets better?

Now, on to the price... The PS3 first introduced at $600 and $500, people flipped over the price. Come on now, it's also a Blu-ray player you know. Okay, then people went nut over the Blu-ray feature. "No games ever gonna go over dvd-9, Sony is stupid." So, what happens now? Oh, Sony is so anti-consumer, the shitty copy right thing, they're after your money... Tsk tsk tsk

Honestly, i didn't think the price is high, i got my Sega CD when it first came out at $300 (worked damn hard for it too). Come to think of it, i rather have the $600 PS3 in 2006/2007.


So many dvds, not enough times...

Comment by: nobrainer (May 22, 2008 10:51)

@ Gnawnivek

being able to make a console cheaper through cheaper components or using foxconn(clickage sweatshop) is one thing but removing PS2 compatibility its completely, stupid because of the back catalogue, and if you just launched a console you were losing money on would you rather ppl be purchasing new games from shops and ps2 games via the psn rather than these ppl playing their old games or picking up titles at car boot sales(uk) for £0.50 to £2 a go?

then you have the larger hard drives that have a hefty premium, but in reality they cost less than a few dollars between models this is surely the best way to save cash, pay little charge high!

dioads are also cheaper now so is ram and hard drive space has never been cheaper.

and i quote my previous comment, you can play ps2 titles but only if you pay us again!

Sony Hints At Downloadable PS2 Games On PS3

Originally posted by hyper:
New York (dbTechno) - Sony has hinted that even though the new models of the PS3 do not do backwards compatability, PS3 owners may soon be able to download full original PS2 games over the PlayStation Network, fully playable on the PS3.

Sony Dropping PS2 Compatibility?

Originally posted by hyper:
Maybe they aren't. Maybe they're planning to introduce a $300 model and add PS2 compatibility to the $400 model. Maybe they're in fact planning to discontinue a really dumb idea (making PS2 compatibility a buy-time decision) and add software compatibility to the $400 model. Maybe they'll even offer a system update to buyers of the existing 40GB model that up-flashes their systems.

You know PS2 compatibility is just a software trick in the 80GB model, right?


Sony Could Run BC On 40GB PS3s. They Just Don't Want To.

Originally posted by hyper:
This whole backwards-compatibility thing on the new 40GB PS3 is a pinch confusing. Why, exactly, can't the new model run PS2 games when the old one could? Tired of asking questions of the night, I instead asked SCEE, who fired back a super-detailed, super-helpful guide to the 40GB's BC capabilities. Which is published in full after the click. For now, though, let's just focus on the part where they tell us they could run PS2 games on the 40GB PS3. They just can't be bothered:

Stepping Backwards

Originally posted by hyper:

The sad thing is that up until now, Sony practically had this aspect of the market in hand. Whatever about the quality or quantity of its software titles, or its pricing strategy, one thing that was regularly praised about the PS3 was its backwards compatibility - even on the European software-compatibility models. For users with HDTVs, the ability to upscale and smooth old games in higher resolutions is a huge boon - one owners of the new 40GB models will miss out on entirely.

"Sony now considers backwards compatibility to be a luxury feature - something consumers should be willing to pay additional money for..."

cutting B/C is not the way to make the ps3 cheaper its a way to sell you B/C at a premium either by a more expensive model or via ps2 games downloaded via the PSN.


Sony Recouping Hardware Losses Through Software Price-Hike

Originally posted by hyper:
Around the same time, the recommended retail price of Sony's first-party titles - which had since launch been slightly cheaper than those from third-parties - quietly went up, in Britain by a few pounds, in Australia by AUD$10




The BPI Are: SONY, UNIVERSAL, WARNER GROUP, EMI.
The RIAA Soundexchange Are: SONY, UNIVERSAL, WARNER GROUP, EMI.
The IFPI Are: The same anti consumer lot as listed above!
The MPAA Are: SONY, UNIVERSAL, WARNER GROUP, DISNEY, PARAMOUNT, FOX.

Comment by: Gnawnivek (May 22, 2008 13:29)

@nobrianer

Nice arguments there, no doubt and respectful supportive links (i didn't click any though). Here are my two cents why i didn't even bother clicking the links... If people want to play PS2 games, errr, they can use the PS2. Unlike MS's original Xbox and Nintendo's GameCube, Sony's PS2 is still fully supported. If people like the PS2 library, chances are they already have a PS2. If no major BC means lower price, i'm pretty sure they don't care.

As to milking more money from older games, everybody is doing that... Yes, that's pretty shitty, but you don't have to buy them. See, i don't understand why would someone wants to spend $5 for the Castle Defense game on the Wii. Bottom line? As long as you're not forced to buy/download them, you're okay (unlike firmware updates, i know they're free now, but that's something mandatory for newer features).

The whole thing with PS3's BC is really out of whack... I totally agree with the notion that it's not the console can't do it, it's the company's decision not to do it. You know what? This is true anywhere... Look around your workplace, it's not that the work can't be done in effective and efficient manner, it's the management's decisions to go on detours (there are reasons behind those decisions, they might be stupid to you, but frankly, vital to the company's long term goal). Consumers never get what they really want in the real world, why? Because what they want is unrealistic and unpractical.

How about this, after this year, there won't be any complaints about the PS3's BC. Why? Well, b/c people will be too busy playing PS3 games, there's no time for PS2 games!

You know what's funny? I rather have the $400 and $500 price tag when the PS3 first launched, i.e. w/ limited BC, less USB ports and no memory card slots. Life is freaking short, i can't possibly play all of the good games out there (not to mention the movies).

Ask yourself this, do you ever wonder why you even bother buying college text books? It's not like you really use them, more likely you just want to have them in case you need them. For my senior year, i didn't buy any books, i aced every class (used the school library). Well, same thing here with the BC pretty much... Most of the games i want on the PS2 can be played anyway (God of War, FFXII, Rouge Galaxy, Okami etc.), why go anal about something you never really gonna touch? As long as you're offered with the option, i'm cool with it. Just imagine colleges require you buy all the mandated text books, that ain't pretty isn't it?







So many dvds, not enough times...

Comment by: ZippyDSM (May 23, 2008 15:50)

Gnawnivek
BWC is a core feature ofthe PSX line drop it to save a penny lose PS3 game sales becuse people can not upgrade tot he PS3 to keep their PS2 games or buy a PS3 to paly PS2 games on it since most PS3 games are eye candy.

basically they could have used the PS2 stuff to get more people to buy into the PS3 and from there PS3 tittles will be bought.


For all the console/game fanboys out their.
http://www.escapistmagazine.com/articles...Console-Rundown
Oh god I can't stop laughing!!!
---
And for the format nazi's I bring you HHD DVVD BVD's!!

Comment by: Gnawnivek (May 23, 2008 16:39)

Originally posted by ZippyDSM:
Gnawnivek
BWC is a core feature ofthe PSX line drop it to save a penny lose PS3 game sales becuse people can not upgrade tot he PS3 to keep their PS2 games or buy a PS3 to paly PS2 games on it since most PS3 games are eye candy.

basically they could have used the PS2 stuff to get more people to buy into the PS3 and from there PS3 tittles will be bought.

that, i totally dig... Dropping BWC (or BC, as some people call it) is pretty stupid considering it cost so little and yet, there's so much to gain from it. Personally, i think it's a stupid move really. Then again, i don't know what's going on in the Sony management's heads... It could be that supporting two generation gaming can hurt the PS3 in the long run. If you give people the notion that it's BWC, then people expect the feature to work (captain obvious). The problem with that is that, the PS2 is pretty much alive and chances are new programming methods that can screw up the BWC could be in play. When that happens, it's bad... You can only safely promise BWC if the current software/hardware is no longer in development, i.e. no new stuffs (and with that limitation, creativity pretty much dead in the water).

This is very true in the software world, i.e. certain feature can only work in the new version and sometimes not BWC. To use the new feature, one must upgrade to the new version. Now, the PS2 is not a software, (thus even harder to address the problem). Asking people to buy a PS2 when the promised BWC PS3 cannot run a new version of something developed for the PS2 can piss off a lot of people.





So many dvds, not enough times...

Comment by: lxhotboy (May 23, 2008 20:27)

Quote:
the only trouble is the 360 is easier to hack than PC games

@ Zippy

Do you mean they are playing online with backups when you mention hacking? That is what i read about the PC gamers with COD4. As long as Microsoft keeps people from being able to play backukps online then people will still buy the originals.

P.S. PS3 owners have a great game coming there way in BIOSHOCK which was limited to xbox360 for videogame consoles players. This game blew my mind and to me and a few friends is actually better than COD4 if you are comparing the single player campaigne of the two games.

Comment by: Gnawnivek (May 25, 2008 19:20)

BioShock is alright, still working on it. It's a single player game really, so you can't compare it to CoD4 in the single player mode. CoD4 rocks, love the sniper chapter (the best chapter in the whole game IMO). Yeah, heard BioShock coming to the PS3 too, i hope it's the same thing as the X360 (i hate to double dip, like Resident Evil 4, got it on the GameCube when first released, then on the Wii again, sucker...)

Comment by: ZippyDSM (May 25, 2008 19:29)

Quote:
Quote:
the only trouble is the 360 is easier to hack than PC games

@ Zippy

Do you mean they are playing online with backups when you mention hacking? That is what i read about the PC gamers with COD4. As long as Microsoft keeps people from being able to play backukps online then people will still buy the originals.

P.S. PS3 owners have a great game coming there way in BIOSHOCK which was limited to xbox360 for videogame consoles players. This game blew my mind and to me and a few friends is actually better than COD4 if you are comparing the single player campaigne of the two games.



Meh you can bypass some of MSs locks and copy checking crap online, however its better to not fool with having it offline, but its still an issue, most Online games are tougher to hack, COD4 is one of the few that go complete attention from the hacking scene, plus unlike most games that die off after 4 months COD4 is some what popular but its making a grand profit despite it having a large proration of its severs flooded with non paying "guests", in the end it all works out because after all the game is wildly popular and not a flash in the pan like bioshock and others.

They have already written off the PC port and are working on the PS3 port and the pre/seqaule....

   

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