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PlayStation 3 has 'no chance' of making any money photo

Acclaim boss David Perry has stated that Sony has no chance of making a worthwhile profit from the PlayStation 3 after selling the consoles at a loss. Putting the cost of the PS3 into perspective, Perry claims that Sony has lost more money on the system  so far than it made during the PlayStation 2's entire five year sales peak.

"Because of the cost of making the PlayStation 3 and because they sold it at a loss, Sony basically has pretty much no chance of making money on the PS3, because it's lost more money than they made during the entire peak of the PlayStation 2 - it's not going to happen again for Sony," stated Perry. "If they release the PlayStation 4 and have an even more expensive console and raise the cost of games by ten dollars, that would not be good."

Perry also suggested that Sony's famous "ten-year plan" was merely a way for Sony to claw back development costs -- that the company has been forced to make the PlayStation 3 last ten years rather than do so out of pure choice. 

David Perry, of course, is a fool. Everybody knows that once Home is released, the PS3 will sell eighteen thousand million billion PlayStation 3 consoles in America alone. The reason for the ten-year plan is because it'll take a decade for Home to be released.








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31 comments | showing # 1 to 31
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Clance's Avatar - Comment posted on 08/20/2008 06:18
Clance
LBP!
Y0j1mb0's Avatar - Comment posted on 08/20/2008 06:22
Y0j1mb0
Just gimme another MDK game Dave or Wild 9 sequel.

Also,

DryvBy's Avatar - Comment posted on 08/20/2008 06:23
DryvBy
Coming from Acclaim, I trust them. They know exactly how to not make money.
ParaParaKing's Avatar - Comment posted on 08/20/2008 06:25
ParaParaKing
The main question is if the PS3 loss is bigger than BluRay winning the format war. Which I doubt.
Niero's Avatar - Comment posted on 08/20/2008 06:40
Niero
@ ParaParaKing - thats exactly what I was thinking. I wonder if profits from Blu-Ray sales (which must be doing decent since they won the format) will offset this in ten years
Projectexodus's Avatar - Comment posted on 08/20/2008 06:44
Projectexodus
Blu-ray profits will definetly outweigh the losses from the PS3. I always said that Sony did a smart move with including blu-ray in PS3, even if it may cause them to loose the console wars.
naturon's Avatar - Comment posted on 08/20/2008 06:45
naturon
Didn't MS sell thier console at a loss as well??, I thougt Nintendo was the only console this generation to be making a profit on the actual hardware. And big companys dont work like regular folk in that previous years losses dont count really towards this years profits, not that i think he's entirelly wrong it just seems like a bit of a random thing to say.
zod000's Avatar - Comment posted on 08/20/2008 06:55
zod000
You notice he doesnt mention the money that was made of of PS2/PS3 games and game royalties. That's where they make all their money and why anyone would ever bother selling systems at a loss. And I think the last Acclaim game I voluntarily played was Wrestlemania for the NES when I was a kid. It scarred me pretty bad, I still have nightmare of Honkytonk man and his weird powerups floating at the top of the ring!
RJG's Avatar - Comment posted on 08/20/2008 07:09
RJG
Does nobody remember the fact that Sony had to take out a loan just to get the PS3 in to production and on to shelves? That's after they blew through all their cash in R&D for the PS3 in the first place.

Since then they've been selling at a loss. There's not much chance at getting any major money out of the PS3.
B-Radicate's Avatar - Comment posted on 08/20/2008 07:16
B-Radicate
@naturon: Microsoft started selling 360s at a loss but within a year or two of production redesigns they managed to sell them for profit. Sony has yet to do that.

The Wii has always been sold at a profit because Nintendo was able to repackage all the Gamecubes it had collecting dust in storage and sell them back to the masses.

Also, is anyone surprised by this "news?"
Capn Birdseye's Avatar - Comment posted on 08/20/2008 07:24
Capn Birdseye
@ ParaParaKing, Niero, etc - Yeah have to agree there. Best thing they ever did was package a Blu Ray player with the PS3.

Even someone like me, who has no interest in PS3 exclusives and hates the dualshock, will probably eventually get one as a Blu Ray player.

Unless MS release a Blu Ray addon... ;)
Felix Lighter's Avatar - Comment posted on 08/20/2008 07:25
Felix Lighter
Hopefully, the fact that they won't be introducing a new disc format next generation is enough to prevent this situation from happening again and Sony doesn't follow Nintendo's annoyingly successful lead by releasing an underpowered casual gamers' machine.
deiga-the-semivaliant's Avatar - Comment posted on 08/20/2008 07:45
deiga-the-semivaliant
...Acclaim still makes games?
Demtor's Avatar - Comment posted on 08/20/2008 07:46
Demtor
I hope their effort to get games going after Home is released brings the type of quality titles I really want to see that would help sell their system. This first generation of PS3 games has been a mixed bag. There is a lot of potential in some of their mediocre titles but we'll see.
whormongr's Avatar - Comment posted on 08/20/2008 08:35
whormongr
sony makes their $ through the licensing and producing of the games, not the sale of the consoles- I got my 40 gig on sale a few months back @ wal mart for $299 - I have spent a lot more than that on games- and that is in a few months- granted not all of that $ factors in to sony, but actual sony games are going straight back to the company
funran's Avatar - Comment posted on 08/20/2008 08:40
funran
Does anyone remember how the Xbox did not profit until it's last year before the 360?
Max Power's Avatar - Comment posted on 08/20/2008 08:46
Max Power
What a claim....
taterchimp's Avatar - Comment posted on 08/20/2008 09:16
taterchimp
@naturon

Yeah, Nintendo has always sold the consoles at a gain and the games at a loss. In this generation though, it looks like both are at a loss, due to being the cheapest. Catering to a crowd not obsessed with the best has its costs (or lack thereof)
HarassmentPanda's Avatar - Comment posted on 08/20/2008 09:37
HarassmentPanda
Sony will make up the loss in the long run. Be it through Blu-Ray sales or licensing, they're sure to make some money off the console. Another revenue stream people seem to be forgetting is Home. Let's face it, Home is going to be a 3D, interactive ad delivery system -- it's a brilliant way to cash-in.
necrozen's Avatar - Comment posted on 08/20/2008 09:51
necrozen
@ B-Radicate

Redesigned, eh? They should redesign them again so that half of them don't blow up! LOL
wickdswagger's Avatar - Comment posted on 08/20/2008 09:56
wickdswagger
You have to take into account the fact that aside from HD heads like us no one really cares about blu-ray. Shit they have to have that old chick from the partridge family telling everybody to buy converter boxes. So I don't see how the fact that sony put a blu-ray drive in their system, which I'm guessing most of the cost comes from to make the ps3, helped them out that much. You can buy cheaper blu-ray players now anyway. No one's going to buy it just because it's a blu-ray player.
Holyetheline's Avatar - Comment posted on 08/20/2008 10:12
Holyetheline
It's sad... Hopefully they can make some money some day off of this system that I don't want/need yet.
parrothead's Avatar - Comment posted on 08/20/2008 10:30
parrothead
Come on Sony finally won a format war, at least that is good.
Mig29's Avatar - Comment posted on 08/20/2008 10:33
Mig29
@necrozen: I thought the fact that Xbox360s blow up was a major selling point.
CelicaCrazed's Avatar - Comment posted on 08/20/2008 10:44
CelicaCrazed
Considering that Sony didn't have to set aside a billion dollars for PS3 repairs, they're on the right path to making money ;).
Dan CiTi's Avatar - Comment posted on 08/20/2008 10:48
Dan CiTi
PS3 sucks 360 has every game exclusive. The 360 has SO MANY EXCLUSIVES! PS3 = EPIC FAIL
Felix Lighter's Avatar - Comment posted on 08/20/2008 10:52
Felix Lighter
@whormongr
I'm sure Dave Perry's taking into account money made from games, peripherals, downloads, etc. He's predicting that over the lifetime of the console the money made from the PS3 overall will not offset the losses they've incurred due to the expensive hardware. Like others have mentioned though, he likely isn't taking into account the role the PS3 played in the format war.
Vanilla Gorilla's Avatar - Comment posted on 08/20/2008 11:18
Vanilla Gorilla
@Dan CiTi
Whoa there, you should go see a doctor for your case of rabid fanboism. Way to completely miss the topic of discussion too.
TrailerParkJesus's Avatar - Comment posted on 08/20/2008 12:44
TrailerParkJesus
"Everybody knows that once Home is released, the PS3 will sell eighteen thousand million billion PlayStation 3 consoles in America alone. The reason for the ten-year plan is because it'll take a decade for Home to be released."

winner
Quiotu's Avatar - Comment posted on 08/20/2008 16:07
Quiotu
People have to realise that turning a profit short term and turning a profit long term are very different things. PS2s were also sold at a loss, and eventually caught up; they made up the loss and still made decent money. Sony owns half of what's in the PS3; that alone will guide their system to sell cheaper down the line. It's much cheaper to build it yourself than to pay someone else to use their product.

Plus, I think David Perry forgot the sinkhole that Microsoft's Xbox division is in. Sure they're finally starting to turn a profit; now they just have to make up the over $7 billion they've lost on their consoles since they started making them 6 years ago. Make that up, and I'll be impressed.
Samit Sarkar's Avatar - Comment posted on 08/21/2008 02:07
Samit Sarkar
*rimshot*
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