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PlayStation 3 'unlikely to break even'

PlayStation 3 'unlikely to break even'

According to research from surveying firm DFC Intelligence, Sony is unlikely to break even on the PlayStation 3.

According to research firm DFC Intelligence, Sony is unlikely to even get close to breaking even on the PlayStation 3 in the current economic climate - even judging by entire lifetime sales!

According to Gamasutra, who were covering a report given by DFC Intelligence at the Game On Finance even in the US, Sony is likely to lose a huge amount of money on the PlayStation 3 even when game sales and licensing payouts are factored in.

"Sony has the most to lose with this current generation," said DFC's Senior Technology Analyst Wanda Meloni.

Current predictions for sales of the PlayStation 3 show it only carving out around 40 to 50 percent of the games market compared to the 67 percent held by the PlayStation 2 at the height of its success.

Particularly telling were the latest financial results for Sony's Games Division, which showed that losses had been cut to 'just' $405 million USD (£245 million GBP) in the last three months of this year. In the same three months of last year the Game Division lost more than double that.

That said, PlayStation 3 sales are slowly on the rise thanks to the success of the Blu-Ray format in the overly-dramatic sounding Format Wars. Sales results show that in the last three months Sony has shipped more than 2.43 million units, which is again more than double that of the same period last year.

Do you own a PlayStation 3, or do your console allegiances lie else where? Let us know in the forums.

24 Comments

Discuss in the forums Reply
Cobalt 30th October 2008, 10:24 Quote
This console generation hasn't really interested me. I own a Wii which I got as a present and I'd like to own the other consoles but really only to play Little Big Planet on the PS3 and Fable 2 on the 360 so it isn't worth it.
proxess 30th October 2008, 10:34 Quote
Consoles don't really interest me either, even tho I do own a Wii (well my brother does).
p3n 30th October 2008, 11:11 Quote
I mostly use my PS3 for playing media or bluray but some casual gaming is great now and again...
Deadwolf 30th October 2008, 11:27 Quote
Perhaps if Sony quit blowing deals with their game makers and got some exclusives only to PS3, they might make a profit.. Why would you spent $600 for a PS3, when you can get an Xbox for $199 and play the same games.. just no blue ray.
mclean007 30th October 2008, 11:58 Quote
Quote:
Originally Posted by Deadwolf
Perhaps if Sony quit blowing deals with their game makers and got some exclusives only to PS3, they might make a profit.. Why would you spent $600 for a PS3, when you can get an Xbox for $199 and play the same games.. just no blue ray.
Check your figures - it's only $400 for a brand new 80GB PS3 vs $260 for a 20GB X360 ($300 for a 60GB) (prices from amazon.com). Still a difference, but nothing like you suggest. And for your money you get a much better built machine that doesn't sound like a harrier taking off, that includes Blu-Ray, and that doesn't charge a subscription to play online.
r4tch3t 30th October 2008, 12:05 Quote
I will be getting a PS3 in the future when I can afford a screen to do it justice. I think that they will break even, just. But since they will undoubtedly be using the cell in the PS4 the research costs for the chip will be regained. So by this logic if you attribute half the research cost to the PS3 it just comes down to reducing the cost of the Blu-ray drive and reducing the cost of manufacturing of the cell chip.
speedfreek 30th October 2008, 14:04 Quote
Quote:
Originally Posted by mclean007
Check your figures - it's only $400 for a brand new 80GB PS3 vs $260 for a 20GB X360 ($300 for a 60GB) (prices from amazon.com). Still a difference, but nothing like you suggest. And for your money you get a much better built machine that doesn't sound like a harrier taking off, that includes Blu-Ray, and that doesn't charge a subscription to play online.

That and you dont have to deal with people on xbox live.
devdevil85 30th October 2008, 14:17 Quote
Quote:
Originally Posted by Deadwolf
Perhaps if Sony quit blowing deals with their game makers and got some exclusives only to PS3, they might make a profit.. Why would you spent $600 for a PS3, when you can get an Xbox for $199 and play the same games.. just no blue ray.
Don't go there man. Stop comparing oranges to apples here.
Joeymac 30th October 2008, 16:10 Quote
I got a Sony BDP350 Blu-Ray player for £130 the other day... so you can "just" about get a Blu-Ray player and a 360 for less than a PS3 ;)
talladega 30th October 2008, 16:31 Quote
Quote:
Originally Posted by r4tch3t
I will be getting a PS3 in the future when I can afford a screen to do it justice. I think that they will break even, just. But since they will undoubtedly be using the cell in the PS4 the research costs for the chip will be regained. So by this logic if you attribute half the research cost to the PS3 it just comes down to reducing the cost of the Blu-ray drive and reducing the cost of manufacturing of the cell chip.

you realize you dont need a 40"+ screen to notice HD like so many people suggest?

you got an fairly new lcd computer monitor? use hdmi>dvi adpater and youre good to go.

people dont know what they are talking about when they say you cant notice the difference under 40" or so.


but you are right, the PS4 will do much better profit wise. Im sure they will use the Cell chip again along with BluRay. PS3 has caused the manufacturing costs of those to go down so when PS4 comes out it wont sell for a loss as long as the PS3 will.

Quote:
That and you dont have to deal with people on xbox live.

Very true. The average player age on PS3 is quite a bit higher as its more expensive so that means very few 12 years screaming into the mic trying to hit on older men pretending to be girls.
devdevil85 30th October 2008, 16:31 Quote
Quote:
Originally Posted by Joeymac
I got a Sony BDP350 Blu-Ray player for £130 the other day... so you can "just" about get a Blu-Ray player and a 360 for less than a PS3 ;)
Is it FW upgradeable? Also, what SKU of 360?
Dreaming 30th October 2008, 16:44 Quote
Quote:
Originally Posted by devdevil85
Quote:
Originally Posted by Deadwolf
Perhaps if Sony quit blowing deals with their game makers and got some exclusives only to PS3, they might make a profit.. Why would you spent $600 for a PS3, when you can get an Xbox for $199 and play the same games.. just no blue ray.
Don't go there man. Stop comparing oranges to apples here.

As a business student I don't see how the PS3 and Xbox 360 are 'apples and oranges' - they're very much direct competitors in the sense that they both target the same customer - console gamers. They each have their unique selling perspectives but as it stands for those who would have either/or but just want any console that plays good games, they're probably going to go (and with good reason considering the cost and range of games etc.) with the xbox 360.

The thing with the PS3 though is it has a submarket of customers who buy specifically for the bluray compatibility which obviously the xbox doesn't have, so if you factor that in the cost may not be so significantly higher than the xbox for the utility you get - but to the core market that makes little difference, they'll get the best bang for buck and console gamers are generally more concerned about games than bluray.

My 2p.
Joeymac 30th October 2008, 17:04 Quote
Quote:
Originally Posted by devdevil85
Is it FW upgradeable? Also, what SKU of 360?

It's a profile 2.0 blu-ray player with a network jack, upgradable over the internet and usb port for storage. Frickin bargain actually. Probably the 60GB of the 360. I've seen that for £140

.. that blu-ray player is £170 normally, there was a 'one day only' deal at Lasksy for £130.

But it's still possible to spend less than a PS3 and get all those features.
Veles 30th October 2008, 19:08 Quote
You have to take into account though that the PS3 was a massive part of BR winning the format wars, so you can't really judge it on it's own, it's more accurate really to look at whether Sony will break even on the PS3 and BR combined, which I'm sure they will. From what I've read, game sales have never been higher and continue to rise, mainly because people see more value in buying a game than going to the cinema or whatever because you can keep on playing it or trade it in for a new game.
Mighty Yoshimi 30th October 2008, 19:56 Quote
I own a ps3 i bought it last year cost 280 quid for a 40gb one around that time say an xbox 360 cost 160-170. True you get a console that was 110 quid cheaper, but then factor in that 3 years worth of xbox live costs about that much.
So if you offline game you save.

It's a hidden charge almost. and if you have xbox live access for 7 years (the approximate lifespan of the console) that's another 245 quid subscription at least 245 + 170 = 415
Cobalt 30th October 2008, 20:08 Quote
I wouldn't use xbox live anyway if I had a 360. Online gaming has always been a better experience for me on the PC. I used to think counter strike players were bad before I got live for the original xbox and played some halo 2.

(PS: I am still of the firm belief that most counter strike players have the average IQ of half a brick)
johnmustrule 30th October 2008, 20:30 Quote
The income they'll make from Blue Ray sales will far exceed their debt, after all, you don't have to make money off what you spent it on! The Ps3 was a format war soildier first and consol second, atleast to the bigwigs
Amon 30th October 2008, 21:46 Quote
Turismo 5 will win some hearts. Not many. But it would be evidence to demolish the suggestion that nobody buys a game console for one game/franchise--as if Metal Gear Solid 4 wasn't enough of an example.
MonkeyTurnip 30th October 2008, 21:57 Quote
Quote:
Originally Posted by Amon
Turismo 5 will win some hearts.

if it ever comes out,

i used ot be adie hard playstation fan ive had allgeneration of the last 2, and the PSP, but im so dissapointed with their putting gamesback i've given up, mainly Gran Turismo portable, that was supposed ot be released about a month after PSP origional launch, and then got shelved for GT5 and now rumoured to be back on after GT5 which IIRC is massivly delayed.

i bought a Wii only to keep my G/F happy i honestly thought it was a "gimmick" but now ive got some games that relly captued me and the controls feel natural, i would like a 360, but im not a big fan of FPS (i know there are other games)and the only game that really looksgood is Forza 2, and i cant wait for Forza 3, i may by a 360 then
r4tch3t 31st October 2008, 00:48 Quote
Quote:
Originally Posted by talladega
you realize you dont need a 40"+ screen to notice HD like so many people suggest?

you got an fairly new lcd computer monitor? use hdmi>dvi adpater and youre good to go.

people dont know what they are talking about when they say you cant notice the difference under 40" or so.


but you are right, the PS4 will do much better profit wise. Im sure they will use the Cell chip again along with BluRay. PS3 has caused the manufacturing costs of those to go down so when PS4 comes out it wont sell for a loss as long as the PS3 will.
I know, I was planning on getting either a 32" TV due to the digital switch over happening now. Or get a nice shiny Dell 24"
Currently I have a 21" CRT TV and a 19" monitor @ 1440 x 900.
Demon Cleaner 31st October 2008, 02:04 Quote
Quote:
Originally Posted by talladega

you realize you dont need a 40"+ screen to notice HD like so many people suggest?

you got an fairly new lcd computer monitor? use hdmi>dvi adpater and youre good to go.

people dont know what they are talking about when they say you cant notice the difference under 40" or so.

It's not that it looks worse per se, it's that the perceived quality gets worse the further you sit away from a screen. So this in turn means that when sitting at a constant distance from a screen, the percieved quality gets worse as the TV gets smaller. If you are sitting within 4ft of a 32" 1080p TV, you will be seeing all of the 1080p goodness. If not, you won't. It's just how our eyes work.

http://s3.carltonbale.com/resolution_chart.html
talladega 31st October 2008, 05:13 Quote
its not exact like you say. maybe for the average person. maybe, but its not as simple as that. its no exact calculation. everyones eyes are different. just like people say we dont notice anything over 30 fps or whatever. total bs.
Dira 31st October 2008, 11:27 Quote
As my dvd-player died on me I needed something to play dvds. First I was looking at chipping my wii. But since there where reports that the player wasnt made for long time reading I ended up buying a ps3. Now it has been months since I played on my wii. While I use my ps3 almost everyday streaming media from pc, playing dvd/blu-ray or gaming. With my new full-hd tv PS3 is insane!

In short the war is still:

Wii - for family/friends/party playing.
PS3 - Media Center, High Grahpic gaming, many new games coming atm.
360 - Hugh number of games.
devdevil85 31st October 2008, 16:07 Quote
Quote:
Originally Posted by Dira
In short the war is still:

Wii - for family/friends/party playing.
PS3 - Media Center, High Grahpic gaming, many new games coming atm.
360 - Hugh number of games.
This is a common misconception as the PS3 still has just as many games to offer as the 360. Yes there are/were some (such as Dead Rising) that haven't made it to PS3, but there are only a handful worth mentioning.....

Most 3rd party titles do not take advantage of the PS3's architecture and of course it makes sense (if you don't like Sony's 1st party titles) to buy a 360 and hope that you don't spend just as much in accessories/peripherals/extra features....
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