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Sony PlayStation 3 hardware finally profitableDVDBack23 @ May 14, 2010 03:17 | 9 comments
"The game business achieved a profit in the fourth quarter due to strong sales of first-party software and the elimination of negative margins on the PS3," adds Nobuyuki Oneda, Sony's new chief financial officer.
The fourth quarter ended March 31st, 2010.
The hardware had been sold for less than cost since its release in November 2006, and high manufacturing costs made the console a continued money loser until just recently.
In late 2009, Sony released a "Slim" version of the PS3, which has more streamlined internals, and a cheaper price tag which led to an increase in sales. Manufacturing costs continue to fall as well, and it appears that Sony will reap the benefits of a profitable fiscal year.
For the fiscal year ended March 31st, Sony lost almost $900 million USD for their games division. That will change this year. "For this year we expect to be able to generate at least double-digit profits," adds Oneda, via BusinessWeek. |
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Comment by: Oner (May 15, 2010 00:32) And the new 40nm RSX model is shipping now which will help out profitability and possibly a counter price drop (probably only to $249) when MS does theirs this year as it is almost definitely going to happen as they are taking a beating in sales on all sides plus need to entice Natal purchases.
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Comment by: KillerBug (May 15, 2010 08:27) This is a bad thing; it goes against the whole marketing model that sony has for the PS3....sell the system cheap and charge a lot for the games. If they keep this up, then the xbox720 will slaughter the PS4. |
Comment by: Oner (May 16, 2010 23:22) Originally posted by KillerBug: I disagree because by the time IF/WHEN the NeXtBOX releases the PS3 will have the install base handily (for HD consoles), vastly better/more support from devs coupled with a greater understanding of the hardware and devs will be slower on the uptake for MS to integrate/buy/use/learn about their new hardware again...plus you have to look at other factors like the economy and MS's standings/holding/worth/profitability (remember they STILL haven't even recouped the original Xbox's losses and the 360's are still prevalent). Add on top of all of that the known SERIOUSLY poor inhouse first party support and the NeXtBOX is poised for some big problems/challenges even before the minor rumblings of rumors about a new system are even spoken! Plus I forgot that MS is really trying to back Natal as their golden ticket to ride out this gen of which they have confirmed will be supported longer than the last, and it's looking quite sad.
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Comment by: DavGerm4 (May 17, 2010 00:25) @Oner, I agree with that! I remember when the PS3 was released and everyone here was like $700 for a game system F$%^ that! But looking at the Fiscal Years they are growing in selling the unit, and like the commercials say, "It Only Does Everything!"
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Comment by: KillerBug (May 17, 2010 06:13) "It Only Does Everything"
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Comment by: Oner (May 17, 2010 15:30) Originally posted by KillerBug: I absolutely agree that Sony is definitely working on a PS4 right now, it's part of the cycle and the 10 year generation is intrinsic/synonymous with "PlayStation" but nobody believes it's top-of-the-line for all ten years. That's would just be misguided and immature to say the least. Technology gets dated (that's a given) but it is undeniable how Sony has consistently planned by offering "more" at the start. And it has always paid off.
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Comment by: DavGerm4 (May 18, 2010 00:11) Even though the PS3 was a year behind in North America to the 360, you also need to realize that they were both 2 different systems, and one happened to cost basically double the other. I mean I remember when the PS3 price was announced, and a lot of my buddies were like "hell with that!".
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Comment by: KillerBug (May 18, 2010 08:48) Oner - you make some great points...but even if it was just some super-slow DDR2 memory acting as a higher level of cache, I want more memory. 256MB system memory just isn't enough...even if it had 512/256 instead of 256/256, this would be a huge improvement. Heck, at this point I would even be happy to see a firmware update that gives us something similar to readyboost...I should be able to look at a picture attached to a message without quiting my game, I should be able to get to the "Create message" prompt in under 30 seconds, I should be able to blow up 10 cars in the middle of a GTA4 street without the system slowing to 1FPS. In a couple of months, we will be able to buy apple phones with as much ram as a PS3, feeding a chip that has less than 1/30 the power of the cell by itself...that just isn't right.
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Comment by: Oner (May 18, 2010 16:56) Originally posted by KillerBug: I too as well wish there was more ram, but it does the trick and the results we have seen plus upcoming are far from "horrible". GT5 WILL be out this year, all info leading up to E3 is proving it to be as well as the time is right. It cannot be pushed out any longer, it WON'T be pushed out any longer. Even the most recent Kevin Butler ad is hinting at an earlier release than what was expected of later this year from around the holidays to possibly August-September (I'm still thinking Holidays though for greatest effect with a bundle as well).
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