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 Send to email | Sony Lost Over $3 Billion To PS3 Cost, Pricing Imbalance [Playstation 3] in Playstation 3 Financial News Original PS3 Sony Top |  By Leigh Alexander
el 23-Jun-2008 |  Pricing the PlayStation 3 below its production cost caused Sony to lose $2.16 billion in 2007 and $1.16 billion in 2008, the company revealed today.
Sony's fiscal 2008 annual report delineated potential risk factors to its investors, outlining that "the large-scale investment required during the development and introductory period of a new gaming platform may not be fully recovered." The loss figures were provided as an example of the "significant negative impact" introducing a new platform can cause at first. "In the past, large-scale investment relating to capital expenditures and research and development for the manufacture of key components, including semiconductors supplied for [PlayStation 3] was also recorded within the Electronics segment," the company said. In order to stay competitive, said Sony, it had to invest large amounts of money in research and development to introduce the PlayStation 3 into the market, and these sorts of expenditures don't always get recouped, especially if a platform "fail[s] to achieve such favorable market penetration... resulting in a significant negative impact on Sony's profitability." Even if it can recoup its investment, Sony said, it's still possible to have lost large amounts of money on the platform's introductory period, and even a successful PS3 might take a while to replace what it cost to produce. These possible outcomes are currently a risk for the company, Sony said.
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 | Kotaku`s The Gamers Guide |  Blogger | XBOX 360 Gamers Weblog
Gossip, news and leaks for obsessive gamers Kotaku As if you don't waste enough of your time in a gamer's haze, here's Kotaku: a gamer's guide that goes beyond the press release. Gossip, cheats, criticism, design, nostalgia, pred |
| Sony Lost Over $3 Billion To PS3 Cost, Pricing Imbalance [Playstation 3] | | Pricing the PlayStation 3 below its production cost caused Sony to lose $2.16 billion in 2007 and $1.16 billion in 2008, the company revealed today. Sony's fiscal 2008 annual report delineated potential risk factors to its investors, outlining that "the large-scale investment required during the dev [..] Read complete article | | Published 23-Jun-2008 by Leigh Alexander in Playstation 3 Financial News Original PS3 Sony Top
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| Kotaku`s The Gamers Guide | Blogger | XBOX 360 Gamers Weblog
Gossip, news and leaks for obsessive gamers Kotaku As if you don't waste enough of your time in a gamer's haze, here's Kotaku: a gamer's guide that goes beyond the press release. Gossip, cheats, criticism, design, nostalgia, pred |
| Sony's Game Biz Thrives While Company Takes A Big Hit [Sony] | | Thanks to improved PS3 sales, Sony's games biz reported a profit on their first fiscal quarter, with sales up 16.8 percent over last year. Net sales for the devision were ¥5.4 billion ($51 million), whereas the company lost ¥29.2 billion ($273 million) in the same period last year. But it's not all go [..] Read complete article | | Published 29-Jul-2008 by Leigh Alexander in Sony Financial Original Ps2 PS3 PSP
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| Kotaku`s The Gamers Guide | Blogger | XBOX 360 Gamers Weblog
Gossip, news and leaks for obsessive gamers Kotaku As if you don't waste enough of your time in a gamer's haze, here's Kotaku: a gamer's guide that goes beyond the press release. Gossip, cheats, criticism, design, nostalgia, pred |
| Unless You're Nintendo, Game Consoles Are Expensive [Business] | | At the Games Convention Developers Dave Perry from Earthworm Jim developer Shiny Entertainment stated that Sony lost more money selling PS3 at a loss than it made during the five years of PlayStation 2 peak sales. That figure is estimated as being in the US$3 billion ballpark. The data [..] Read complete article | | Published 20-Aug-2008 by Brian Ashcraft in Business Nintendo Ps2 PS3 Sony Wii Xbox Xbox 360
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| Sony announces VAIO JS pricing, sets sights on iMac business |  Ladies and gentlemen, say hello to the Sony VAiMac. Wait no, sorry - the Sony iVAIO? No no, it’s actually called the Sony VAIO JS. All joking aside, Sony has just announced the pricing on its latest creation and its price points are almost directly in line with Apple’s 20″ iMacs, the VAIO JS really [...] [..] Read complete article | | Published 07-Oct-2008 by Zach Epstein in DesktopsRetailWindows Vistaall-in-oneAppleiMacJSPCsonystand aloneVAIO
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| Joystiq | Blogger | Covers video game news from an independent, unbiased perspective
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| Joystiq | Blogger | Covers video game news from an independent, unbiased perspective
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| Joystiq | Blogger | Covers video game news from an independent, unbiased perspective
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| Kotaku`s The Gamers Guide | Blogger | XBOX 360 Gamers Weblog
Gossip, news and leaks for obsessive gamers Kotaku As if you don't waste enough of your time in a gamer's haze, here's Kotaku: a gamer's guide that goes beyond the press release. Gossip, cheats, criticism, design, nostalgia, pred |
| Increasing PS3 Sales, Strong PSP Helped Sony Narrow Losses In FY08 [Sony] | | Sony's game division saw sales go up 26.3 percent in fiscal 2008 to 267.5 billion yen ($2.5 billion), and while the company still took an operating loss of 124.5 billion yen ($1.2 billion), that's close to half of what it was in 2007. The company also said its Japanese sales "decreased slightly [..] Read complete article | | Published 23-Jun-2008 by Leigh Alexander in Sony Financial Industry News Original Playstation 3 Ps2 PS3 PSP Top
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Filed under: Sony PlayStation 2, Sony PlayStation 3, Nintendo Wii, Microsoft Xbox 360, Rhythm
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