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PS3 blamed for big Sony Q4 loss

16 May 2007 19:12 by James "Dela" Delahunty | 27 comments

Sony Corp. reported widening losses for Q4 today blaming both the costs associated with the launches of the PlayStation 3 (PS3) console and reduced sales of the previous generation's king, PlayStation 2 (PS2). The consumer electronics giant reported operating losses of 113.4 billion yen (�695 million) compared with a loss of 51.9 billion yen (�318 million) in the same quarter of the previous year.

The operating profit for the financial year ending March 31st was 71.75 billion yen (�440 million) while revenue was up about 10% to 8.3 trillion yen (�51 billion). The company predicts operating profits of 440 billion yen (�2.7 billion) for the coming year. The company will work on reducing the production costs of the PlayStation 3 (PS3) console and also produce cheaper LCD displays.

Source:
The Register

Permalink to this article | Topic: Consoles

PlayStation 3 firmware updated posted (14 May 2007)

Sony to launch aggressive marketing campaign for PS3 and Blu ray (10 May 2007)

Sony is not reconsidering price of PS3 (20 April 2007)

UK retailers to drop price of PS3s (20 April 2007)

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SProdigy (Member) 17 May 2007 4:29
Yeah that means Sony is going to reduce the PRODUCTION costs of the PS3 (emotion engine anyone?) thus reducing their loss on each system sold. If they save $10 a system in production, I highly doubt they will cut the price tag $50, or for that matter, any price cut at all. [ + quote]
cashman91 (Member) 17 May 2007 6:25
no suprise they lose about alot for every sysytem sold [ + quote]
i1der (Junior Member) 17 May 2007 7:26
Who cares? Sony is a big company and is like that in every launch of a new System... I don't think a company can rely only on one product, maybe things are not going right in other aspect too... PS3 was made for a Decade said Sony, so they are not expecting profit from it soon, been a adopter of the 3 New gen i believe PS3 still gonna lead the Console war this time too, but not with a solid lead as was last gen... PS3 is like a super babe growing to be a leader no matter what. [ + quote]
muccione (Newbie) 17 May 2007 8:34
I think everyone should go out and buy a PS3 just to support Sony, Even if you don't want or need or plan on using a PS3. You owe it to Sony. I bought 6 PS3s on the day for the launch so I did my part, Now its your turn.... [ + quote]
nptwenty (Inactive) 17 May 2007 9:05
XBOX 360 XBOX 360 XBOX 360 XBOX 360 XBOX 360 XBOX 360 [ + quote]
muccione (Newbie) 17 May 2007 9:49
Originally posted by nptwenty: XBOX 360 XBOX 360 XBOX 360 XBOX 360 XBOX 360 XBOX 360 I bought 8 on the day of the launch....so I did my part there too....Someone else needs to step up too [ + quote]
ThaJazz (Inactive) 17 May 2007 13:52
Originally posted by muccione: I think everyone should go out and buy a PS3 just to support Sony, Even if you don't want or need or plan on using a PS3. You owe it to Sony. I bought 6 PS3s on the day for the launch so I did my part, Now its your turn.... people dont owe sony sh!t they are a company out to make money above all eles.screw that give me a 360 anyday there is a lot of people that do not want a BR player just yet so outside of that what is the ps3 really offering that 360 does not.the BR should have been a add on just like the 360 hd add on it would have made the price more attractive. [ + quote]
flyingv (Member) 17 May 2007 14:21
Originally posted by muccione: I think everyone should go out and buy a PS3 just to support Sony, Even if you don't want or need or plan on using a PS3. You owe it to Sony. I bought 6 PS3s on the day for the launch so I did my part, Now its your turn.... Did you keep all 6 or turn yourself a profit? That did'nt help them out, just youself! muccione: this goes for you too. Got more money than sence? We don't owe these guys anything. I'm not a fanboy of any certain system, I'm just looking at the big picture here. These guys are only in it for the money. [ + quote]
bobiroc (Member) 17 May 2007 14:48
One Word: DUH! Wonder how much money and time was spent by Sony to figure this one out. [ + quote]
muccione (Newbie) 17 May 2007 17:21
Quote: Originally posted by muccione: I think everyone should go out and buy a PS3 just to support Sony, Even if you don't want or need or plan on using a PS3. You owe it to Sony. I bought 6 PS3s on the day for the launch so I did my part, Now its your turn.... people dont owe sony sh!t they are a company out to make money above all eles.screw that give me a 360 anyday there is a lot of people that do not want a BR player just yet so outside of that what is the ps3 really offering that 360 does not.the BR should have been a add on just like the 360 hd add on it would have made the price more attractive. Just so you know: the 360 HD add-on is for movies ONLY....The BR player can play BR movies AND GAMES...a BR disc can hold 50gb on a single layer....HD discs can only hold 30gb.....Now think about this...X360 games can only be 8.5gb at the most using DL..The PS3 game discs can hold 50gb on a single layer..I have read that a company has made a 4 layer BR disc...200gb...thats a lot of gaming space...So to compare X360 to PS3 is like apples to oranges..They both are gaming systems and that about the only thing they have in common.....NEVER CHOOSE WHAT NEW GAMING SYSTEM TO BUY....BUY THEM ALL....I love both of them... [ + quote]
Ankoku (Junior Member) 17 May 2007 17:56
IM SICK OF EVERYONE SAYING "Ohh they're out for the money" NO FREAKIN WAY...BREAKING NEWS!!!, WE BETTER GET CONSUMER REPORTS ON THIS ASAP! Freakin A, all companies are out to make money, thats what a company is you freakin naive losers, I dont think Microsoft is helping everyone out by stamping out any other attempt at creating operating systems at a lower cost... I dont think Sony is helping people out by releasing DVDs that dont play on all dvd players, I also dont think its right that Merck is not distributing their medications to Africa, But hey they need to make money, companies making money means more jobs, stop thinking any different, and Sony will be fine, companies operate at losses all the time, if anyone actually wants to take a very very basic accounting course you'll learn that operating losses and gains are the smallest part of the balance sheet, much more is made of investing activities and the like [ + quote]
muccione (Newbie) 17 May 2007 18:02
Originally posted by Ankoku: IM SICK OF EVERYONE SAYING "Ohh they're out for the money" NO FREAKIN WAY...BREAKING NEWS!!!, WE BETTER GET CONSUMER REPORTS ON THIS ASAP! Freakin A, all companies are out to make money, thats what a company is you freakin naive losers, I dont think Microsoft is helping everyone out by stamping out any other attempt at creating operating systems at a lower cost... I dont think Sony is helping people out by releasing DVDs that dont play on all dvd players, I also dont think its right that Merck is not distributing their medications to Africa, But hey they need to make money, companies making money means more jobs, stop thinking any different, and Sony will be fine, companies operate at losses all the time, if anyone actually wants to take a very very basic accounting course you'll learn that operating losses and gains are the smallest part of the balance sheet, much more is made of investing activities and the like Sony still had a profit....The operating PROFIT for the financial year ending March 31st was 71.75 billion yen (�440 million) while revenue was up about 10% to 8.3 trillion yen (�51 billion). [ + quote]
Ankoku (Junior Member) 17 May 2007 18:46
thats exactly my point muccione that was just for the quarter, people just like to blow things out of proportion, Im totally on your side about just getting all 3 systems and having a good time with them, rather than taking allegiances, because there is no real point to it, I am still gathering funds for the PS3 but I do have the Wii and 360, which I think is pretty good for a full time college student... [ + quote]
ThaJazz (Inactive) 17 May 2007 19:12
Quote: [quote] Originally posted by muccione: I think everyone should go out and buy a PS3 just to support Sony, Even if you don't want or need or plan on using a PS3. You owe it to Sony. I bought 6 PS3s on the day for the launch so I did my part, Now its your turn.... people dont owe sony sh!t they are a company out to make money above all eles.screw that give me a 360 anyday there is a lot of people that do not want a BR player just yet so outside of that what is the ps3 really offering that 360 does not.the BR should have been a add on just like the 360 hd add on it would have made the price more attractive. Just so you know: the 360 HD add-on is for movies ONLY....The BR player can play BR movies AND GAMES...a BR disc can hold 50gb on a single layer....HD discs can only hold 30gb.....Now think about this...X360 games can only be 8.5gb at the most using DL..The PS3 game discs can hold 50gb on a single layer..I have read that a company has made a 4 layer BR disc...200gb...thats a lot of gaming space...So to compare X360 to PS3 is like apples to oranges..They both are gaming systems and that about the only thing they have in common.....NEVER CHOOSE WHAT NEW GAMING SYSTEM TO BUY....BUY THEM ALL....I love both of them...[/quote]who cares about all that tech sh!t anyway give me good games and a fair price and the rest dont matter.look oblivion was on a standard disk and wow that game was huge so dont tell me that 50gig is needed for video games right now.all i been trying to say is that if sony made the ps3 a game console first that more would have sold. [ + quote]
ThaJazz (Inactive) 17 May 2007 19:15
Quote: [quote][quote] Originally posted by muccione: I think everyone should go out and buy a PS3 just to support Sony, Even if you don't want or need or plan on using a PS3. You owe it to Sony. I bought 6 PS3s on the day for the launch so I did my part, Now its your turn.... people dont owe sony sh!t they are a company out to make money above all eles.screw that give me a 360 anyday there is a lot of people that do not want a BR player just yet so outside of that what is the ps3 really offering that 360 does not.the BR should have been a add on just like the 360 hd add on it would have made the price more attractive. Just so you know: the 360 HD add-on is for movies ONLY....The BR player can play BR movies AND GAMES...a BR disc can hold 50gb on a single layer....HD discs can only hold 30gb.....Now think about this...X360 games can only be 8.5gb at the most using DL..The PS3 game discs can hold 50gb on a single layer..I have read that a company has made a 4 layer BR disc...200gb...thats a lot of gaming space...So to compare X360 to PS3 is like apples to oranges..They both are gaming systems and that about the only thing they have in common.....NEVER CHOOSE WHAT NEW GAMING SYSTEM TO BUY....BUY THEM ALL....I love both of them...[/quote] who cares about all that tech sh!t anyway give me good games and a fair price and the rest dont matter.look oblivion was on a standard disk and wow that game was huge so dont tell me that 50gig is needed for video games right now.all i been trying to say is that if sony made the ps3 a game console first that more would have sold.[/quote] [ + quote]
borhan9 (AfterDawn Addict) 17 May 2007 19:31
These are some big numbers even for sony. As they say watch this space. :) [ + quote]
tleewade (Newbie) 18 May 2007 8:42
do the playstation 3 have a pentium chip or a amd chip . they are just fast coumpter. designed just for games.with a overpriced dvd player.even with a harddrive. a rose by any other name is still just a rose. [ + quote]
hughjars (Inactive) 18 May 2007 9:54
Originally posted by ThaJazz: Just so you know: the 360 HD add-on is for movies ONLY. - Yeah, that's the idea. If you don't want or need a high def movie player you aren't forced into paying for one. It's also a brilliant little HD DVD ROM drive for anyone with a decent & recent PC. Originally posted by ThaJazz: The BR player can play BR movies AND GAMES. - Indeed......and seeing as how this generation of blue lasers have a limited life-span we'll soon be seeing just how it maybe wasn't such a great idea to combine the 2 uses like that. Not that any of the BD fanclub will even admit to this. Originally posted by ThaJazz: a BR disc can hold 50gb on a single layer. - Er, no it can't. BD can store 25gb on a single layer and 50gb on a dual layer disc. Originally posted by ThaJazz: HD discs can only hold 30gb. - Wrong once again. HD DVD can currently store 15gb on a single layer, 30gb on a dual layer. They have just submitted for approval from the DVD Forum 17gb per layer up to a maximum of triple layered 51gb discs. Originally posted by ThaJazz: Now think about this...X360 games can only be 8.5gb at the most using DL. - Did the possibility of 2 or 3 or even 4 discs ever enter your head? It's not exactly unknown in the PC world so why not? Originally posted by ThaJazz: The PS3 game discs can hold 50gb on a single layer. - No they can't. BD has a maximum of 25gb per layer. ......and if you can link to anyone who is really going to be using 50gb dual layer for a mere game I'd love to hear of it. The truth is that with the PS3 losing so many exclusive games the PS3 version will be little different to the same game appearing on PC, XBox 360 and Wii (the sole 'difference' might be a shed-load of boring FMV making 'use' of the extra space). Originally posted by ThaJazz: I have read that a company has made a 4 layer BR disc...200gb. - The 100gb & 200gb multi-layer discs have been demonstrated in the lab only. Existing hardware cannot play them (you don't have a laser able to read 4 layers in the PS3 for a start) and seeing as they have had huge troubles making a reliable dual layer 50gb disc (production yields have been low) thoughts of 100gb or 200gb are very very premature. In fact it's probably most likely that (if they ever do escape the lab and stop being vaporware) that that media will be so expensive, as will be the hardware necessary to use it, that they remain confined to professional bulk data storage businesses. But right now that's all they are, nothing but pure vaporware to speculate over. Originally posted by ThaJazz: thats a lot of gaming space. - No it isn't. It's just you playing a little day-dreaming game of 'ifs, buts and maybes' with yourself. You have no serious and realistic factual basis to make such a claim. Originally posted by ThaJazz: So to compare X360 to PS3 is like apples to oranges. - No, they are actually very very similar to each other in capability. One is slightly better in one area and the other in another area of performance. There's very very little in it. As far as games go the situation is very different. Spec-sheet jockeys quibbling over the minutia of each machine might be interesting to a handful but it's the games that matter to most. Right now the PS3 has little except in-house exclusive Sony games and a pricetag that is keeping the punters away.....and with the recently announced low profits of the Sony group and their losses on each PS3 that pricing situation is not going to be changing any time soon. Originally posted by ThaJazz: They both are gaming systems and that about the only thing they have in common. - Er, that's kind of like saying the only thing TVs have in common are that they are TVs. Yeah and what? Originally posted by ThaJazz: NEVER CHOOSE WHAT NEW GAMING SYSTEM TO BUY....BUY THEM ALL....I love both of them... - Good for you. I don't mean to sound off with you but you'd be making a much better and more informed choice if you actually had the facts about each system (and not some of the myths and half-understood ideas about each you've shown here). Originally posted by ThaJazz: who cares about all that tech sh!t anyway give me good games and a fair price and the rest dont matter. - Ignorance is never a better choice, sorry but it just isn't. Originally posted by ThaJazz: look oblivion was on a standard disk and wow that game was huge so dont tell me that 50gig is needed for video games right now. - You're not going to be seeing people making genuine full use of the 25gb disc for a very long time (FMV 'padding out' aside), nevermind 50gb. Originally posted by ThaJazz: all i been trying to say is that if sony made the ps3 a game console first that more would have sold. - I'd agree with that, I think zippy says as much regularly here too. If they hadn't tried to force BD along they would probably have done much much better (but even so I don't think the XBox 360 would have been wiped out either). Basically they got greedy, tried to use the gamers and are now paying the price. It's perfectly possible that PS3 continues to bomb - latest sales data in the USA show monthly sales under the 100,000 level now. [ + quote] This message has been edited since posting. Last time this message was edited on 18 May 2007 10:16
muccione (Newbie) 18 May 2007 11:26
You are well informed...do you have a PS3? or a X360? Probably not...you sound like a WEE owner...and who wants a game with 2,3,or 4 discs? My problem is I have more money than brains...hughjars don't you wish you had the same problem as me? My kids love all there gaming systems, It would suck If they wanted a game and I didn't have the system to play that game..That would be like them not having a pair of shoes to wear or going to bed hungry... [ + quote]
hughjars (Inactive) 18 May 2007 11:57
Originally posted by muccione: You are well informed. - I try. Originally posted by muccione: do you have a PS3? or a X360? Probably not. - Correct, my nephews go in for those kind of things. Originally posted by muccione: you sound like a WEE owner. - Oh dear, and you were doing so well. Originally posted by muccione: and who wants a game with 2,3,or 4 discs? - People with a degree of perspective & sense? Originally posted by muccione: My problem is I have more money than brains...hughjars don't you wish you had the same problem as me? - FFS what idiotic nonsense is this meant to be? You know nothing about me & have chosen to ignore the factual stuff I have posted and now want to try & wave your pathetic ego as if I have the least bit of interest or could care less. You're welcome to all of your own problems PAL.....sounds like you got plenty to worry about. [ + quote] This message has been edited since posting. Last time this message was edited on 18 May 2007 11:57
flyingv (Member) 18 May 2007 12:06
Well put! Couldn't have said it better myself! [ + quote]
eandtc (Newbie) 18 May 2007 16:11
/Just giggling about the fact that PAL is underlined... XD [ + quote]
spydah (Junior Member) 18 May 2007 18:38
Quote: Originally posted by muccione: I think everyone should go out and buy a PS3 just to support Sony, Even if you don't want or need or plan on using a PS3. You owe it to Sony. I bought 6 PS3s on the day for the launch so I did my part, Now its your turn.... people dont owe sony sh!t they are a company out to make money above all eles.screw that give me a 360 anyday there is a lot of people that do not want a BR player just yet so outside of that what is the ps3 really offering that 360 does not.the BR should have been a add on just like the 360 hd add on it would have made the price more attractive. What the hell is M$? They are all about the samething money and power. Yall get to caught up on the small stuff. Each company is gonna do what it takes to make their money. So no matter which monster you feed its gonna grow and eat your @$$. [ + quote]
muccione (Newbie) 19 May 2007 10:07
Quote: Originally posted by muccione: You are well informed. - I try. [quote=muccione]do you have a PS3? or a X360? Probably not. - Correct, my nephews go in for those kind of things. Originally posted by muccione: you sound like a WEE owner. - Oh dear, and you were doing so well. Originally posted by muccione: and who wants a game with 2,3,or 4 discs? - People with a degree of perspective & sense? Originally posted by muccione: My problem is I have more money than brains...hughjars don't you wish you had the same problem as me? - FFS what idiotic nonsense is this meant to be? My point is this.....I wanted a game system and bought both of them when they came out (I had to be the first in the hood to have them) I didn't and don't sweat the petty things...Again I love BOTH systems. If you want to have FUN...buy a game...If your going to make comments about a game system...own it B4 you complain about it...don't tell me how to drive my H2 when you drive a YUGO [ + quote] This message has been edited since posting. Last time this message was edited on 19 May 2007 10:08
hughjars (Inactive) 19 May 2007 10:26
Originally posted by muccione: If your going to make comments about a game system...own it B4 you complain about it - Er, what the hell would I want to buy into BD for when I am utterly opposed to the implications inherent in it? That kind of 'you can't say unless you have direct personal experience' attitude went out with the birth of writing and technical review. Grow up. Originally posted by =muccione: ...don't tell me how to drive my H2 when you drive a YUGO - Oh dear, you really do have problems, don't you? [ + quote]
diableria (Inactive) 19 May 2007 11:53
nobody owes sony or microsoft anything , are you stupid? they just want your money! just buy whatever benefits you more! [ + quote]