In the most obvious story since the invention of the word obvious, Sony announced today that their operating profits have fell a shareholder-jumping 68% for the financial year. But, we all knew that would happen. Sony already said they'd take a loss with each PlayStation 3 sold and hell, when you take a chance and release the most expensive and technically advanced machine on the market, it's gonna happen. Sony had this to say about the sour low profits:
According to Sony's annual report, "In the Game segment, there was a significant operating loss as a result of the sale of PS3 at strategic price points lower than its production cost during the introductory period." Sales of the console have not been overwhelming either - it has been outsold by Nintendo’s Wii by two to one since its release in November 2006.
"It was not an ideal launch. Our focus is to strengthen our software lineup this year," said Sony senior VP Takao Yuhara at a press conference in Tokyo.
Focus on software? Yeah, that's pretty much a little Captain Obvious post right there. You rock Takao Yuhara!
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Contest:
9:54 AM on 05.16.2007
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You're not ducking that point by using the renting vs buying excuse.
If I had friends over to look at a potential PS3 I might own in some Bizarro World, they'd want to see the movies, and then they'd want to know what the games played like. I'd show them Motorstorm and then possibly Resistance. And then what? Who wants to see my avatar in Home?
(crickets)
Nintendo are doing the same thing to a certain extent as well, focusing on all these channels that really don't offer gamers a heck of a lot. Nintendo, however, are at least working on a good deal of future titles.
Sony do like to go ahead with a "jack of all trades, master of none" philosophy, it seems.
Focus on software is what they should have been doing from the start, but they convinced themselves that bluray and the Sony name alone would make PS3s fly off the shelves at launch.
I totally agree. I just recently started using my 360 as a DVD player because I got sick of unplugging shit from the back of my TV, and my stereo doesn't support 1080i passthrough.
Prior to this, when I had a PS2, I had like 6 things that could play DVD's. why would I need more?
I don't think the loss in profits is due to the PS3 itself not selling well, since more PS3s sold would mean more that need to be manufactured, which would then mean more of a loss in profits. What they really need are better games so they can increase the money they make off of software per PS3 owner.
With that said, they obviously need to sell more PS3s to make sure developers make good games. However, I think too many people are attributing the profit loss to lack of PS3s sold. Unless you're Nintendo, you don't make money off of console sales, you make it off of software sales.
oh wait...
shit i bought a 3DO for more!!
and only for street Fighter!!
hahaha
that was stupid!
@ Dan Gale: I don't know about you, but I still haven't gotten tired of watching YouTube videos on my Wii on a TV screen. Otherwise, I agree.
It was never in the $600 boat.
I'm curious as to what Sony was expecting to lose on rolling out the PS3. They had to know they weren't expecting profit from selling it at a loss.
When I watch a movie on DVD I don't have a problem with the quality. I don't think we really need HD DVD or BluRay. Maybe just... not yet? I guess they both just want their foot in the door for when average consumer has a desire for it. If either company lets the other get a head start, they'll be the clear winner when the time is right, seeing as how there isn't much difference in perceived quality. ok
All along, Sony's been telling us how amazing their launch was. What else have they been spinning to us?
nuff said
If you lower it (the price) people will come.
I see PS3's stacked high at Best Buy & Circuit City. No ones buying PS3.
It's mainly because of the expensive price, but also lack of good games, arrogance from sony that insults gamers and word of mouth labeling it the loser system to own.