One of the accepted facts of the gaming industry was that you sold your gaming system at a loss and recouped the loss by selling software. It worked for years, and no one complained. Then Nintendo came along with the Wii and started making a profit off of the sales of its system almost immediately, making Sony and Microsoft look like fools. (Fools, I tell you!) This is especially the case for Sony, who was still taking a massive loss on each PlayStation 3 as of last year.
Some bright news on that front for Sony, however. Instead of losing a large amount of money with each system sold, they are now losing a smaller amount of money now. Despite the price drop, Sony only loses about $18 on the PS3, now thanks to streamlining the system and the lower production costs of advancing technology. This means that by 2011 the PS3 can be where the Wii was at launch, and be profitable with every system sold. Good news for Sony, who just posted their first profitable quarter in a long ass time.
Cost Cutting Pays Off at Sony [Wall Street Journal, via Kotaku]
Matthew Razak is Destructoid's Associate editor and co-founder of film site
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Contest:
10:00 AM on 02.06.2010
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Awesome as the Cell processor seems to be, conventional hardware that's more powerful probably could have been cheaper by this point for them.
Oh well. I just bought my second PS3, for 300 bucks. The first one cost me 600 bucks. I've bought like 6 games for the system.
I'd say Sony probably still hasn't made a profit off of me, considering the 600 dollar console was sold at like a 250 dollar loss at the time.
But then Microsoft includes the required HD cables and a headset in the box, so I dunno!
Good for sony though, maybe now they can focus on using the money they saved to work on their lackluster PSN platform or maybe securing exclusivity.
They're getting better at this whole console sales thing ever since the 'It only does everything' ads started airing.
The headset thing has been a problem forever, though. I've never found one that seems to work well for me with the PS3.
Fun fact: I was in LameStop last week picking up Mass Effect 2 and I asked the two clerks 'How much is the Official Sony Bluetooth Headset?' To which they both replied together; "TOO MUCH!" and "just use any bluetooth headset" they didn't even try to sell me one of their generic branded ones(which I clearly saw on the shelf behind them).
So if even GameStop is shying people away from Sony's products, what does that say?
Now I'm going to use my BlackBerry headset for PS3 as well. :)
As far as PC goes... I haven't been in the game in a while, so I'm not sure. I think HDMI can be used to watch HD tv on your PC, however, you would need an HDCP(High Def Copy Protection) compliant video-card and HDCP-ready Monitor.
Hope this helps. I don't mean to sound insulting, I just wasn't sure what you meant when you asked your question. Cheers.
However, I seriously doubt that Sony will actually make a profit for every PS3 sold.
@ Rammstein: I got my HDMI cable on Amazon. The prices are always changing, but you're guaranteed to find something for 15 bucks or less.
On the note of using an HDMI cable with a computer, I'm going that right now. In fact, I'm going through my receiver as well, and everything is just fine. Without this cable my TV would only have 720p from my computer. That wouldn't fly with me.
Headsets are for use on your own in your bedroom, not for a living room medias centre like the ps3.
The sony headset was cheap as fuck when bought with socom, and works flawlessly.
If i remember correctly the 360 didn't even have a hdmi port on the early models, let alone a cable!
Bought exclusivity is a lie and a con, ms loves that timed exclusive bullshit, greedy underhanded american business practice 101 and the psn suits my need perfectly, and i do a whole lot of online gaming....
Last I checked GameStop was fully aware of the extended functionality of the older models and was selling the used 20GB for within $30 of the new slim. A used 60GB is more expensive than the slim! They should be the same price at that EBGames since pricing should be uniform across both stores, so you should go buy that one and put it up on eBay or something.
Not Sony's fault if you buy a stupidly priced HDMI cable instead of going cheap. Even if Sony do sell the expensive ones, You choose to buy them.
It's wrong to say "the $60 HD cable isn't included" because you've seen them at $60. The £80 HD cable wasn't included in my Xbox 360.
The $60 Wireless Receiver isn't included with the Xbox, But is standard on the PS3.
@EternalDeathSlayer
Turtle Beach P21.
Expensive, but great quality sound and good mic.
As usual you don't get it.
The PS3 is 'THE' HD system. And what's included? Composite cables? So you're going to hook up your brand new, 1080p system with cables that can't even display 480? The Wifi in the PS3 sucks, I can speak for that, my PS3 is directly next to my wireless router (trying to scrounge up another ethernet cable) and the thing constantly kicks me off when accessing anything, mainly in the PSN store. As of now if I want a stable connection I have to swap the CAT cable between my PS3 and 360. 360 didn't have an HDMI port on early models because, get this, HDMI wasn't even mainstream when the 360 launched. It was still being introduced, and most TV's didn't have HDMI, let alone support 1080p output. So why would they include it? Oh, and 360 controllers, yeah they use AA batteries but thats perferable to a permanent battery. In case you didn't know, rechargable batteries lose charge each time you charge them. So if the battery is fused with the controller, then guess what? You HAVE to buy a new controller. If my 360 controller battery dies, I can spend 10 bucks for a new battery, problem solved. And unless you're buying an arcade, a HDD is there as well. You can either buy a bigger one, or god forbid, Gooogle a tutorial on how to upgrade the HDD yourself. It isn't difficult at all.
Nice try though.
Might not be gold plated Monster cables, but they still work fine. But actually, my RE 360 DID come with an HDMI cable, and my TV came with one too. So I lucked out. PS3 and 360 are both HDMI'd.
Don't be stupid and pay more than $7-8 bucks for your HDMI cables.
Monoprice.com is your friend, people.
HOOK,
LINE
&
SINKER.
Also, every single thing RenagadePanda just said.
One thing I have to ask about though:
"Headsets are for use on your own in your bedroom, not for a living room medias centre like the ps3." WUT?!
Did you also agree with Sony that the Sixaxis was the future and that a rumble feature wasn't needed? That is, before they settled their lawsuit and released the Dualshock3 of course. Oh and I hear Sony now makes MicroSD cards because they want to give people 'choices'! Love ya, SC. Try harder though, you're slipping. ;)
Unless you need a HDMI cable longer than 9 ft (I don't know the exact maximum length of HDMI cable signal, but I normally 1/3 the spec and try to keep the cable length under control), you don't need 60 bux HD cable. Most of 6 ft or shorter HDMI cables do well as long as companies you buy are not some bogus companies. The cable runs between 10~30 bux at the most. And 360 doesn't include the cable any more.
Sony failed in this gen IMO. If MSFT didn't lose 1 bill over 360 RROD, MSFT most likely is ready to release 720 and further distance itself from Sony console, but I don't think that will happen any time soon.
Sony's software development cycle is still unacceptably long and complicated and 360 appears to be still the choice for many developers due to ease of development.
The only huge difference that I currently see with PS3 and 360 is the bluray for more capacity. The CPU/GPU and everything else appear to be pretty close on both platforms and cell doesn't seem like the magic chip that Sony was trying to make it to be. Microsoft should really make xbox 720 with a small and quiet form factor, same features of 360 + bluray, possibly built in wireless-n, and 250 GB HDD. I will buy even it's the same old 360 inside. I got more than money's worth from owning 360. PS3 stills sits there used the least at my house.
Unless you need a HDMI cable longer than 9 ft (I don't know the exact maximum length of HDMI cable signal, but I normally 1/3 the spec and try to keep the cable length under control), you don't need 60 bux HD cable. Most of 6 ft or shorter HDMI cables do well as long as companies you buy are not some bogus companies. The cable runs between 10~30 bux at the most. And 360 doesn't include the cable any more.
Sony failed in this gen IMO. If MSFT didn't lose 1 bill over 360 RROD, MSFT most likely is ready to release 720 and further distance itself from Sony console, but I don't think that will happen any time soon.
Sony's software development cycle is still unacceptably long and complicated and 360 appears to be still the choice for many developers due to ease of development.
The only huge difference that I currently see with PS3 and 360 is the bluray for more capacity. The CPU/GPU and everything else appear to be pretty close on both platforms and cell doesn't seem like the magic chip that Sony was trying to make it to be. Microsoft should really make xbox 720 with a small and quiet form factor, same features of 360 + bluray, possibly built in wireless-n, and 250 GB HDD. I will buy even it's the same old 360 inside. I got more than money's worth from owning 360. PS3 stills sits there used the least at my house.
Fun fact: Best Buy pays $4 for their Dynex Cables and sells them for $30+ Employees can purchase store brand at-cost, while customers have to pay the mark-up. So yes, never buy in-store unless desperate.
It only does everything. Except HDMI in-box, it seems.
Besides, the lack of HD cables is pretty fucking strange considering it also plays Blu-Ray discs. In contrast, the DVD playing 360 comes with HDMI cables and all, and it's always come with at least component cables. I also got a headset and shit. One that worked and didn't force me to buy a shitty game I don't want.
Still, I enjoy my PS3 enough and believe in Sony's overall commitment to quality games and quality hardware enough to have bought the new slim when my old 60GB was broken. I just wish they had a better strategy in the early years of the console.
I only got it around October 2009. So unless they changed it since then, You got lucky or I got ripped off.
Wifi in the box is much more important than a shitty HDMI cable anyway =/
If they're not, that sucks.
It's normal practice to add 1000% or more on accessories.
Just for a giggle factor, you can buy an optical cable for around 4000 bux from certain high end specialized custom audiophile manufacturer. I have no idea how much difference the cable makes and I think the company also makes the HDMI cable. And it's not Monster and I don't recall the name of the company at the moment.
actually I can understand the SD cable thing as should you , everytime somebody says HDTV on this site we get atleast 5 people who complain about only having SDTVs, unfortunately due to this recession not everyone has had the chance to upgrade, but those people still buy consoles so you don't wanna leave them out, they should probably include both sets but they can't just drop one as things stand.
and the controller thing, unscrew the controller , look the battery up online ( its costs the amazingly high price price of 5 bucks ) insert new battery , BAM controllers good for another eight years. We had a great ol discussion on this site about this that ended with these words , and I quote " if you pay for a new controller , your retarded" .
as for the wi fi thing, myself and several other dtoiders are on wi fi an we can all attest that it works like a charm, Im not trying to insult your choice in electronics , but it sounds like your router is shit, or theres interference of some kind, either way me and at least 5 other FNF regulars use wifi with no issues so thats just you man.
Yes, the lack of HD cables makes a difference, and it's stupid of Sony to not include them. They kept pushing the PS3 as THE HD, Blu-ray, media center device, and then they included nothing HD with it at all.
@ Rammstein: Even thought that is their job to sell stuff, most people who work there are gamers just like people here. And since most people I know who own a PS3 claim to have a cellphone/bluetooth headset, then heck, who is going to tell you to spend an extra $50 for something you already have. So they do soemthing nice for you, and you still take offense to it? LOL
My PS3 headset was a USB wired SteelSeries headset that was thrown in the trash because someone thought it didn't work. :D
I thought the XB360 Elite ships with the same exact accesories as the PS3 120Gb. So why am I seeing comparisons?
Also, give me 'The Last Guardian' A-holes!
Plus 'Ico' and 'SOTC'!
I want to spend money! Give me a reason to!
Then Sony could at least include composite and component cables, or have them combined like the 360 does. The point is, if you advertise your company with the tagline 'HDNA' you damn well be ready to back that up out of the box.
As far as the controller, what you're suggesting is almost unreasonable. Opening the controller voids the warranty, so if it breaks, you're screwed. Having to purchase the battery online is also pretty unreasonable. True, not everyone has HDTV's, but a lot of people also don't have internet, or basic technical skills. The minute you open a controller, you can easily ruin it. Many people have. I'd much rather have a removable battery. Much easier and a lot less frustration and time involved.
That's the thing, it doesn't affect my PSP (works flawlessly on my wireless setup) or my PC (which fails due to severe system problems). In fact, my PSP has a more stable wireless connection than my PS3. It seems odd to me.
monoprice.com is THE only choice for cables and adapters. HD cables for like $5 shipped! I personally vouch for these guys and you should try them out.
Both HDMI and Optical cables do NOT need to be fancy or expensive to work at peak performance. With these types of cables, either the data gets there or it doesn't. The data doesn't doesn't degrade along the way because of a cheaper cable (unless you're running it through like 100ft of cable or something ridiculous).
@RenegadePanda,
I have read that enabling "Port Forwarding" on your router works WONDERS for online gaming (especially wireless) on the PS3.
Just go to google and search for PS3 "Port Forwarding" and you'll find guides on how to do it. Hope it helps you out!
I've not forwarded ports or anything and i have zero troubles with the psn.
And controllers? Mine are going on 4 plus years now, still hold a charge, still last for many many hours of use without charging.
Sure they should have dropped a cable in there.
But i'd rather buy a cable than a wifi adapter, overpriced hdd, charging packs or a fucktonne of aa's and an online subscription.
But let's be honest both Sony/Microsoft are taking a loss on the selling of their console hardware.
Sony made the PS3 too expensive and sold it at a loss.
Microsoft is losing money on all of those 3 year warranties and console replacement due to hardware problems within the Xbox 360.
ex.) RROD, E74, Disc Reading Issues, etc.
However Sony/Microsoft have found other ways to make money to make up for the loss on the hardware they sell.
ex.)
Sony:
-Software (PS3/PS2/PSP/PSN, Add Ons, Royalty fees, etc.)
-Accessories (Controllers, Cables, Remotes, etc.)
-Home Content (Buying stuff in Playstation Home.)
etc.
Microsoft:
-Xbox Live (Monthly Fees.)
-Software (Xbox 360/XBLA)
-Accessories (Charge & Play Kit, Remotes, Hard Drives, Cables, Controllers, etc.)
etc.
Those are the reasons Sony and Microsoft are posting some major profits is because they've found other ways to make money to account for the loss they take on their hardware.
Nintendo on the other hand is just pure profit.
Everything is made cheap and sold high in price.
Software sales are crazy for the Wii/DS.
Since when they've been selling games at 60€ price tag in Europe? I've never seen even one PS3/360 game at that price when bought new. Then again I live in Finland where every effin' thing gets some effin' 10-20€(ie. 70€+ priced games) price hike because they think they can get away with(and some retarded they do). This is only reason I buy my games somewhere else, like UK or in Aland because they are tax free, so the price drops to 45€.
I work at "LameStop", and yes, I have told people many times not to buy the $50 Sony headset and instead order online at a place like amazon.com. I always tell them that I got my headset at woot.com for $7.
Do I care that "LameStop" isn't getting any money? No, I'm just trying to be helpful. Very, very sorry that I tried to be helpful - I'll throw the generic brand crap at you next time. Would you like that?
The fact that I tell people to buy the non-official stuff is simply because Sony charges too damn much. Is that something exclusive to Sony? I don't think so, considering Nintendo is charging $200 for a Gamecube w/ BlueTooth, and Microsoft is charging $150 for a 120 GB Hard Drive. Everybody freakin' does it, and it's something that everybody has always done - it's nothing new.