Sony has lost over $3 billion on the PS3

http://videogames.yahoo.com/feature/sony-has-lost-over-3-billion-on-the-ps3/1223467

by chaostheory • 18 years ago

15 23 18 years ago

videogames.yahoo.com

Does that make PS3 the new New Coke?

Development costs of the PS3 must be huge, but I don't think its 'lost' money, the thing still has a shelf life of 5+ years at least.

Tichy4• 18 years ago

How do you arrive at that estimate? I am guessing the PS3 technology is already outdated now?

marcus3• 18 years ago

Look at the average life expectancy of consoles over the years 5-6 years is about the right number. PS2 is still selling and it was released in 2000 but that is about as old as it gets.

pmjordan2• 18 years ago

What about Wii technology? Would you call the Wii outdated? Its CPU, GPU, etc. certainly are. Does that make it a bad console? A bad investment for nintendo?

palish2• 18 years ago

A loss at launch is typical for consoles. (The XBox was not profitable when it first launched, either.)

Still, 3bil is damn high.

marcus3• 18 years ago

You know what they say a billion here two billion there, pretty soon it adds up to real money.

damienkatz• 18 years ago

The XBox still has not made a profit. MS has turned the corner where they aren't still losing money on every unit, but it looks unlikely they'll ever recover their losses on this generation console (the last generation was a money loser too).

pmjordan2• 18 years ago

It's all those pesky scientists building HPC clusters from PS3s and not even playing games on them.

http://en.wikipedia.org/wiki/Playstation_3_cluster

Retric3• 18 years ago

I think they also lost money from people using it as a blue ray player. But they won the HD-DVD war which is probably worth a lot more than 3billion.

chaostheory• 18 years ago

unfortunately for Sony, that's not the end of the format war. the bigger war is with downloads; both legitimate and illegal...

to be fair MS has also lost a considerable amount, plus this is the first time Sony has sold a console at a loss (Nintendo still hasn't done this yet).

patrickg-zill• 18 years ago

They will cost-reduce it some more and with the further cost reductions, plus royalties etc. will end up making money. Remember as well, they are manufacturing massive volumes of Blu-Ray readers, which saves them money when they sell standalone BR boxes to home theater folks.

Sony has lost over $3 billion on the PS3

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