230°

Guardian Blog: Is Sony losing $260 on every PS3 it ships?

Guardian writes: "Sony's gaming arm lost around $1.2 billion last year - an impovement from the $2.2bn loss the year before. But is Sony losing $260 per PS3?

Well, according to the latest Sony financials they could well be. The technology blog has been looking at the figures which show Sony's gaming arm lost around $1.2 billion last year - an improvement from the $2.2bn loss the year before. Of course, console manufacturers, though generally not Nintendo, often suffer losses - caused by high costs/low install base - early on in a console's lifespan. Microsoft certainly did and it appears Sony are continuing the trend. Jack Schofield crunches the numbers.

"On Sony's own figures, the games division made a loss of $130 for each PlayStation 3 shipped. Let's assume that it's making pots of money on the PSP and the PlayStation 2: the PS2 is now hugely profitable and still sells more games than anything else. These two platforms could easily have made a profit of $1.2bn in the year. In that case, the total PS3 loss would have been $2.4bn shared between 9.24m PS3 consoles, or $260 per PS3 -- including any attached Sony games."

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blogs.guardian.co.uk
Rikitatsu5827d ago

It was less than 260$ when the PS3 launched , u mean to tell me that Sony now loses more money than the time when PS3 launched ?

Condoleezza Rice5827d ago

When the Ps3 was at 600,the losses were around $230 per unit.With the manufacturing costs having gone down,it makes no sense why they would be loosing MORE right now,especially since the author of the article admits their gaming division lost a whole billion LESS than it did the previous year

zane_78495827d ago

This guys math is all over the road, and I guess advertising and actual game development are free? Servers for online games to run on? Free?

aaquib5827d ago

Includes all the marketing and PSN service fees they've recently been initiating. The statement at launch was solely for the hardware. The $260 is completely inaccurate, but the losses include the millions they spend on the PSN and the millions they spend advertising. If those costs are built into the PS3, then it could definitely mean $260 loss per console.

Pornlord5827d ago

They can afford to do this because they no longer have to advertise PS2, so its really just a cash cow right now. There are still advertising commercials for PSP and PS3, but you're right, this seemingly arbitrary numbers we are getting aren't giving us the factors of cost.

MURKERR5827d ago (Edited 5827d ago )

why should i care?

and if true then im actually happy it proves i got a bloody bargain ps3 was my investment for the future and with bluray winning and a 50g exclusive game coming already next month my console choice seems correct

ruibing5827d ago

It's a stupid article, they make it seem like the only expense SCE has is the manufacturing of the PS3. They also have to fund all the games they are publishing in addition to advertisements.

CrazyMystical5826d ago

yea i see what u mean but i tend to ask for the cow's price as well only because i always wanted one

+ Show (4) more repliesLast reply 5826d ago
Fishy Fingers5827d ago

Quite an exaggeration. I'm sure Sony Game Division spend money left, right and centre, not just on the PSP,PS2,PS3 hardware.

But that's a blog for you, crazy headline or it's no-hits-ville. Normally where they belong, no exception today.

Marceles5827d ago (Edited 5827d ago )

As long as I'm not losing $260 on every PS3 they ship, I really could care less.

Fishy Fingers5827d ago (Edited 5827d ago )

Exactly. if it's true (which it obviously isn't), you and I got an absolute bargain :) The more money out of Sonys pocket and less out of mine the better.

Leg-End5827d ago

"I could care less" that means the total opposite of what you're tryna say

The saying goes "I couldn't care less"

Marceles5827d ago

Hah I don't believe it...OK english major, I could care more.

Blademask5827d ago (Edited 5827d ago )

Does Sony losing money make Alan Wake come out any sooner? Or does it make Gears 2 look any less like Gears1?

Drekken5827d ago

so off topic, but I got a good chuckle.

sonarus5827d ago (Edited 5827d ago )

Tone the fanboy stuff just a tad bit. Thanks:D

Its not funny at all but let me give it a shot. Does it make rrod worse than GTA freezing issues :p

InYourMom5827d ago

Your comment is as stupid as this article.

What does Alan Wake or Gears 2 have to do with this? Seems like you are trying to deflect the article buy bringing up 2 games that will never see a Sony Platform or you are trying to start a flame war.

shadowghost7525827d ago

why are you bringing up this? It is completely irrelavent, you have done it in the Open zone as well.I agree with INYOURMOM what is the point of trying to start a flame war?

Drekken5827d ago

@ Sonarus - I have a 60gig PS3 and The freezes on this game is no worse then any other game I have played.... Completely random and not everytime I play. Probably froze 3 times on me, mostly jumping from multiplayer room to room to find a non-autoaim noob host!

+ Show (2) more repliesLast reply 5827d ago
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120°

Ar Tonelico Qoga: Knell Of Ar Ciel Retro Review – Love Conquers All

Gary Green said: You’ll be forgiven if you haven’t heard of the Ar Tonelico trilogy. The previous two games arrived so late in the PS2’s life-cycle that they simply went unnoticed. While most were tinkering with their shiny new PS3s, Ar Tonelico: Melody of Elemia and Ar Tonelico II: Melody of Metafalica were being ‘returned to sender’ by your local Game stores. Luckily, you won’t need to have played them to understand and appreciate this third and final chapter, Qoga (pronounced k-yoga) tells the story of a racial war between humans and Reyvateils, a breed of biologically produced female cyborgs capable of reproduction, while still having a digital mind.

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pslegends.com
Giga_Gaia23h ago

Oh my god. I kinda wish this would get a remaster on PS5, it would be awesome. One of my favorite games on PS3.

That and 3D Dot Game Heroes. It's a shame that some stuff is stuck on PS3.

Knightofelemia21h ago

Ar Tonelico 3 is good I still prefer the first AT game. The music is solid in all the games and Akiko Shikata is a very talented singer bringing life to the game. Only annoying part is well I find is Saki I always choose Finnel or Tyria. KOEI so needs to HD remaster the franchise along with Ar Nosurge and Ciel Nosurge since it never came to North America. I would day one the Ar Toneliceo games and Ar Nosurge if they were remastered.

TheColbertinator20h ago

I still have the limited edition of Qoga unopened. Unfortunately it never went up in value like I had hoped all these years.

Father__Merrin16h ago

Used to own all these quirky JRPG on ps3 good times. Wish I would have kept them all

290°

Microsoft’s Surface and Xbox hardware revenues take a big hit in Q3

Microsoft just posted the third quarter of its 2024 fiscal financial results. The software maker made $61.9 billion in revenue and a net income of $21.9 billion during Q3. Revenue is up 17 percent, and net income has increased by 20 percent.

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theverge.com
darthv722d ago

Xbox content + services up 62% while hardware down 31%... seems about right with the way they tout you don't need the hardware to play. People can play on their phones or smart tv or other means. I don't hardly play on my consoles directly since getting devices like the logitech g-cloud and ps portal. Which is to also say I have been playing more digital than physical because of these devices.

solideagle1d 14h ago

you should apply in MS PR team buddy, I think you will do a great job in my humble opinion :)

Sonic18811d 11h ago

I thought darthv72 and Obscure_Observer already work for Microsoft 🤔

dveio1d 11h ago

MS: "Xbox services and content without AB up 1%, with AB up 62%. Hardware down 31%. In total a loss of 350 mill."

darthv72: "Seems about right."

MS: "Excuse m ..."

darthv72: "I don't hardly play on my consoles directly."

MS:

Lightning771d 6h ago

What he said was facts. How he plays games is no concern of you. Don't get too mad about it.

Cacabunga1d 13h ago

I can tell people like you are an absolute minority..

If service is up means their fans and fanboys accepted this model and subscribed to it. The near future you will see a big decline because the service is saturated.

darthv7223h ago

to you it may seem like the minority... but your bubble is shrinking because more and more are following suit. convenience is a hell of a drug and its also why physical sales only amount to 30% of overall game sales. times are changing, you either get with them or you get left behind.

neutralgamer199218h ago

Darth

30% physical sales: yet Phil and xbox division are in a rush go give up on that 30%. they don't have any right to give up any piece of the pie since the control such a little of the pie to begin with

also, the market is clearly speaking that the model Xbox is pushing isn't working right now the keyword being right now. you are right about freedom to play anywhere so i hope they put their games on steam

shinoff21831d 12h ago

But that's been ms for years. When things aren't going their way they try to change the way things are said. For instance console sales are down, they stop telling how many sold instead telling us how many hours spent in halo or headshots. So it makes sense console sales down just say people are playing on more devices then previous. What they won't say is how many xbox players jumped ship to ps5.

Cacabunga1d 11h ago

Hardware sales are so bad that Sony and Nintendo are blowing the sales off the water with their hardware.

If Xbox are losers, others aren’t..
Xbox already tried everything with Xbox live then subscriptions went down so much that they had to find something else. Their fans subscribed then reached saturation rather quickly.

Hardware and exclusive games is where it’s at! Keep gamers excited, announce decent software and people will support you

itsmebryan1d 7h ago

@shin
Well keep it simple Sony 's operating income is down 26% and Microsoft's is up 32%. No MS spin there, just facts. 😉
Cheers

S2Killinit1d ago

MS is after diminishing consoles as a medium. They want to destroy this market because they couldnt win. MS’s vision is to dissolve console gaming.

romulus231d 6h ago

Odd that a company that touts you dont need the hardware to play is already touting another console in the works.

darthv721d 6h ago

They are not reliant on the HW but still want to maintain a presence (no matter how small) is a good thing. It shows commitment to the craft. It reminds me of SNK and how they made games for their own hardware (Neo Geo) while also making them for others because they knew there was a market to do so. They knew they would sell more to others but also sell to their own niche fan base.

TheEroica1d ago (Edited 1d ago )

Perfectly reasonable post down voted by insecure corporation friendly folk.... But not gamers. Real gamer want accessibility and ease of acquisition for all.... Company shills are the only ones still telling us that hardware locking people from games is good for us.

Chevalier18h ago

@Darth

You should stop parroting metrics like an idiot without context.

"Xbox content and services revenue grew 62% in Q3 from a year earlier, “driven by 61 points of net impact” from the purchase of the third-party video game giant, Microsoft said."

61 of the 62% was from their merger so net increase is ONLY 1%

https://www.mesaonline.org/...

itsmebryan10h ago

@chevalier

It looks like made a great purchase. Much better then Sony buying Bungie. 😉
Cheers

+ Show (4) more repliesLast reply 10h ago
purple1011d 16h ago

Xbox hardware revenue tanks to lowest point of Xbox Series generation

Profchaos1d 15h ago

I'm not surprised surface is struggling they aren't relevant anymore

DOMination-1d 5h ago

In the last two years they've started exiting the consumer market altogether. All of the newest Surface products are business models only. They can't seem to work out what they want to do with it.

XBManiac1d 15h ago

Too expensive hardware when others offer the same or more for less? Good work, Green Team.

SimpleDad1d 15h ago (Edited 1d 14h ago )

"Despite some early successes for Xbox games on rival platforms, Xbox hardware is down by a massive 31 percent this quarter."
"Without Activision Blizzard, Microsoft’s overall gaming revenue would have actually declined this quarter."
"Xbox content and services would have only been up a single percent without Activision Blizzard..."
"It looks like next quarter is going to be a similar story for gaming at Microsoft, too."

That is crazy... so A/B/K is carrying the whole Xbox gaming.
Oh and Microsoft will be fine. Windows, Office and Cloud are growing with each pc purchase.

purple1011d 14h ago

Activision: "we gonna need a bigger rucksack/backpack please"

Microsoft: "why's that"

Activision: "to carry yo' weak ass'

Profchaos1d 14h ago (Edited 1d 14h ago )

Top brass have also wanted to start seeing returns on the 100 billion they have put into various Xbox related moves so seeing more multiplatform games is highly likely especially from abk

It's basically saying that PlayStation is the reason Xbox is afloat right now thinks to Ps5 versions of COD

Kornholic1d 12h ago

So basically PS and PC gamers' money is keeping Xbox on life support.

MrDead1d 5h ago

The only growth MS will get out of the console industry is if it supports it's rivals platforms. Xbox is a pointless machine now. I can see them on a big push for live next, and they won't give up on trying to buy Steam.

+ Show (1) more replyLast reply 1d 5h ago
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140°

Why Monopolies In Gaming Must Not Be Allowed

As of right now, there are no monopolies in the games industry, and for the sake of the medium as a whole, they never should either.

thorstein2d ago

Shouldn't be allowed in any field.

Inverno1d 21h ago

And yet the biggest tech companies in America are essentially that. They buy up all the small comps only to kill them off and steal what they have, and if they can't buy em they bleed them to death.

jwillj2k41d 20h ago

Eventually they’ll realize the value is with the employee not the company. Buying an IP means nothing if the people who contributed are let go. They’ll get it one day.

MrCrimson1d 20h ago

tech is different because they buy threats and then kill them. Twitter bought Vine and did nothing with it. Despite people seemingly liking it. Could've had tiktok a decade before bytedance. go figure.

Zenzuu1d 21h ago

Monopolies shouldn't be allowed regardless. Not just for gaming.

MrCrimson1d 20h ago

They buy IPs not talent. That's why these buyouts never work and the IPs die. Right now it's too expensive to develop games - but I expect that to shift maybe as AI tools can make it easier. The best games have been indie games for awhile as big developers fuck their ips to death with "games as a service" -