PS3 Official Price and Launch Date
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Joined: Aug 2003
Posts: 290
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From: Chicago
Wow, I guess some people never had to take managerial accounting here.
When figuring out the cost to sony or MSFT you can't ignore the cost of development. Sony has spent billions to dev the PS3. On top of that, pretty much every analyst so far has indicated they will be losing $2-300 on each console sold.
If you don't believe that consoles aren't profitable, I urge you take some time and look at the financials for Microsoft's gaming division. Microsofts games make Enron look like a highly profitable and stable business. Microsoft has lost billions of dollars on the Xbox and now the 360. For them this is fine because they see it as a battle for the living room, and can easily absorb the losses from their cash cow divisions like windows and office.
As for NFRs2000NYC's assertion that Sony wouldn't be doing this if they were going to lose money up front. You're kidding right? Have you ever read an income statement from Sony corp? That place practically has a furnace for $100 bills.
When figuring out the cost to sony or MSFT you can't ignore the cost of development. Sony has spent billions to dev the PS3. On top of that, pretty much every analyst so far has indicated they will be losing $2-300 on each console sold.
If you don't believe that consoles aren't profitable, I urge you take some time and look at the financials for Microsoft's gaming division. Microsofts games make Enron look like a highly profitable and stable business. Microsoft has lost billions of dollars on the Xbox and now the 360. For them this is fine because they see it as a battle for the living room, and can easily absorb the losses from their cash cow divisions like windows and office.
As for NFRs2000NYC's assertion that Sony wouldn't be doing this if they were going to lose money up front. You're kidding right? Have you ever read an income statement from Sony corp? That place practically has a furnace for $100 bills.
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Joined: Jun 2003
Posts: 18,852
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From: New York
Originally Posted by saluki9,May 13 2006, 07:28 AM
Wow, I guess some people never had to take managerial accounting here.
When figuring out the cost to sony or MSFT you can't ignore the cost of development. Sony has spent billions to dev the PS3. On top of that, pretty much every analyst so far has indicated they will be losing $2-300 on each console sold.
If you don't believe that consoles aren't profitable, I urge you take some time and look at the financials for Microsoft's gaming division. Microsofts games make Enron look like a highly profitable and stable business. Microsoft has lost billions of dollars on the Xbox and now the 360. For them this is fine because they see it as a battle for the living room, and can easily absorb the losses from their cash cow divisions like windows and office.
As for NFRs2000NYC's assertion that Sony wouldn't be doing this if they were going to lose money up front. You're kidding right? Have you ever read an income statement from Sony corp? That place practically has a furnace for $100 bills.
When figuring out the cost to sony or MSFT you can't ignore the cost of development. Sony has spent billions to dev the PS3. On top of that, pretty much every analyst so far has indicated they will be losing $2-300 on each console sold.
If you don't believe that consoles aren't profitable, I urge you take some time and look at the financials for Microsoft's gaming division. Microsofts games make Enron look like a highly profitable and stable business. Microsoft has lost billions of dollars on the Xbox and now the 360. For them this is fine because they see it as a battle for the living room, and can easily absorb the losses from their cash cow divisions like windows and office.
As for NFRs2000NYC's assertion that Sony wouldn't be doing this if they were going to lose money up front. You're kidding right? Have you ever read an income statement from Sony corp? That place practically has a furnace for $100 bills.
However, there is one thing you are overlooking.
Supposed Sony had developed Blu-Ray for the PS3. It cost them a lot, and they are taking a beating on every console sold. However,when Sony comes out with a standalone Blu-Ray player, and puts it on the market, are you going to say its 100% profit since the PS3 ate all the development costs?
Since the PS3 will be a gateway for them in regards to MANY new standalone products, I dont think its really a "loss" Its a now or later situation...spend it now, or spend it later.
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Joined: Mar 2003
Posts: 2,640
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From: Palo Alto
Originally Posted by NFRs2000NYC,May 12 2006, 12:22 PM
Not as much as you think. I believe Sony actually gets about 5-7 dollars per game.
Out of 49.99
1) 10% marketing/distribution fee
2)10-15% publishing fee
3)25-50% developers cut
4)0-5% licenses
5)0-10% Miscellaneous
6) Sony's cut.
Out of 49.99
1) 10% marketing/distribution fee
2)10-15% publishing fee
3)25-50% developers cut
4)0-5% licenses
5)0-10% Miscellaneous
6) Sony's cut.
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Joined: Aug 2003
Posts: 290
Likes: 0
From: Chicago
Originally Posted by NFRs2000NYC,May 13 2006, 11:32 AM
I actually have taken managerial accounting.
However, there is one thing you are overlooking.
Supposed Sony had developed Blu-Ray for the PS3. It cost them a lot, and they are taking a beating on every console sold. However,when Sony comes out with a standalone Blu-Ray player, and puts it on the market, are you going to say its 100% profit since the PS3 ate all the development costs?
Since the PS3 will be a gateway for them in regards to MANY new standalone products, I dont think its really a "loss" Its a now or later situation...spend it now, or spend it later.
However, there is one thing you are overlooking.
Supposed Sony had developed Blu-Ray for the PS3. It cost them a lot, and they are taking a beating on every console sold. However,when Sony comes out with a standalone Blu-Ray player, and puts it on the market, are you going to say its 100% profit since the PS3 ate all the development costs?
Since the PS3 will be a gateway for them in regards to MANY new standalone products, I dont think its really a "loss" Its a now or later situation...spend it now, or spend it later.
Sony could charge 25K for each blu-ray player right now and still not turna profit for years. However that is not where the costs are being derived from. Much more work went into the PS3 that just the drive.
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Joined: Dec 2005
Posts: 10,106
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From: Connecticut
Originally Posted by JanNov s2k,Nov 15 2006, 12:08 PM
crazy cant wait too see the graphics
but of course, you could pay the price of a PS3 for a single video card in order to get them.
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Joined: Jul 2002
Posts: 2,176
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From: Houston
Saw this on another forum but camping out for the PS3 can be dangerous too
http://www.tgdaily.com/2006/11/16/ps3campe...iveby_shooting/
http://www.tgdaily.com/2006/11/16/ps3campe...iveby_shooting/