Print 40 comment(s) - last by jjabrams.. on Jan 15 at 7:37 AM

Sony hopes to stop losing money on PlayStation 3 next fiscal year

The PlayStation 3 is an expensive piece of hardware for both consumers and SCEI. The entry price of the PlayStation 3 fell significantly in 2007 – and while component costs also went down, Sony was still selling hardware at below cost.

At the time of the PlayStation 3 launch in mid-November 2006, iSuppli estimated that Sony was losing $240 on each 60GB PS3 and $300 on each 20GB PS3 that it sold.

Sony’s gaming division chief Kazuo Hirai spoke at a news conference at CES revealing hopes of turning a profit in the next fiscal year.

"We want to get to the positive side of the equation as quickly as possible," said Hirai in a Reuters report. "The next fiscal year starts in April and if we can try to achieve that in the next fiscal year that would be a great thing. We are going through the budgets right now. That (profitability) is not a definite commitment, but that is what I would like to try to shoot for."

The introduction of the 40GB PlayStation 3 SKU brought the entry price of the system down to $399 – a price that managed to entice buyers to finally put down their money. Sony said that it sold 1.2 million PlayStation 3 consoles throughout the holiday season, representing two-thirds what it sold in the rest of the year.

Given Hirai’s sentiments that the company is looking to "get to the positive side of the equation," gamers will likely see the $399 (for the 40GB) and $499 (for the 80GB) price points sustain throughout the foreseeable future.

Hirai’s comments also inadvertently reveal Sony’s failure to meet hopes of turning a profit by the end of this fiscal year, which ends March 2008. Sony said in July 2007 that had hoped to eliminate the negative margin during this period.

“For the negative margin to go away, the big trigger would be the cost-down in the Cell and RSX semiconductors. They are the key, and also optical pick-up is another factor, significantly,” Sony executive VP Nobuyuki Oneda said in 2007.

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RE: too ambitious?
By FITCamaro on 1/8/2008 10:45:59 AM , Rating: 2
Honestly I see $400 as a good price for the PS3. The real reason I haven't put down the money is the games. You people who own one can cry all you like, but I already have a 360. There's just not enough exclusive games that I want to buy.

Heavenly Sword wasn't rated that highly and is extremely short. Ratchet & Clank doesn't appeal to me. And the few other exclusives just aren't drawing me to it either. About the only thing that's got a shot is Final Fantasy and Metal Gear Solid. But then I'm not sure I want to drop $600 when it's all said and done just so I can play those games. And MGS4 might come out on the 360 anyway. So that just leaves Final Fantasy.

If Square Enix releases a new Final Fantasy based MMO as a sequel to FFXI though, that'll get me to buy a PS3.

RE: too ambitious?
By SirLucius on 1/8/2008 11:05:15 AM , Rating: 2
There's just not enough exclusive games that I want to buy.

Nobody can argue with that. If the games don't appeal to you, than that sucks for Sony. But at least you're not saying nothing is available.

RE: too ambitious?
By jjabrams on 1/15/2008 7:37:10 AM , Rating: 2
Having that one killer title really makes you WANT one but otherwise the wallet/missus decides that you just dont need one because its going to burn that huge hole in your wallet.

RE: too ambitious?
By ajfink on 1/8/2008 11:55:16 AM , Rating: 2
I might buy a PS3 when they drop to the $299-$350 range. There just aren't enough worthwhile titles for it yet that I can't get for my 360. That might change, and if it does...hell, I'll have a Blu-Ray player.

RE: too ambitious?
By HighWing on 1/8/2008 1:18:35 PM , Rating: 1
I love the PS3 and think it's a great piece of all in one Hardware, but as much as I hate to admit it, there just aren't that many games out there for it that I am interested in other then GTA4 and YES I am interested in the @Home (if it ever launches).
Other then that, I would have to say I bought mine as a Blue-Ray player and replacement for my PS2.

RE: too ambitious?
By Tiamat on 1/8/2008 3:31:00 PM , Rating: 2
True, I dont mind the 400$ price at all. But, the games available now don't appeal to me either. I bought the PS2 solely for FFX, then got roped into Gran Turismo 4, and other games. For the PS3 to be justifiable for me, I need at least Gran Turismo 5 and one of the FFXIII titles. Looks like I might be buying a ps3 this next christmas, but not much sooner than that.

RE: too ambitious?
By Chris Peredun on 1/8/2008 4:09:36 PM , Rating: 2
Assuming it makes the rumoured launch date of November 15, 2008, God of War III will bring in another bumper crop of PS3 sales next year at around the same time.

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