Report: Sony facing massive PS3 losses

[Lovecraft13]

Sony is expected to report its quarterly earnings tomorrow, and a group of analysts are bracing for bad numbers, according to a Bloomberg.com report. The financial news site obtained predictions of Sony's quarterly results from 11 industry analysts, and the group's median estimates for the electronics giant were a company-wide loss of 75.8 billion yen ($630 million), with revenues up 9.5 percent to 2.02 trillion yen ($16.8 billion).

As for the culprit behind those projected losses, they appear to be due to the game division and then some. Bloomberg said responses from five of the analysts pegged Sony's game group as posting a quarterly loss of 121 billion yen ($1 billion), completely wiping out expected profits from the rest of the company's divisions. The gaming business more than offset gains from Bravia HDTVs and the box office performance of Spider-Man 3, according to the report.

-gamespot

[Pacmanshead]

Sony should cut their losses.

[Biofungus]

Sony is expected to report its quarterly earnings tomorrow, and a group of analysts are bracing for bad numbers, according to a Bloomberg.com report. The financial news site obtained predictions of Sony's quarterly results from 11 industry analysts, and the group's median estimates for the electronics giant were a company-wide loss of 75.8 billion yen ($630 million), with revenues up 9.5 percent to 2.02 trillion yen ($16.8 billion).

As for the culprit behind those projected losses, they appear to be due to the game division and then some. Bloomberg said responses from five of the analysts pegged Sony's game group as posting a quarterly loss of 121 billion yen ($1 billion), completely wiping out expected profits from the rest of the company's divisions. The gaming business more than offset gains from Bravia HDTVs and the box office performance of Spider-Man 3, according to the report.

-gamespot
Surprise!

[Mwynn]

Who are these analysts and where do they get their numbers?
Here is one for microsoft.
http://www.joystiq.com/2005/09/26/forbes-xbox-lost-microsoft-4-billion-and-counting/

[Mr.Musgrave]

From early quarterly earnings reports, that's where. And the fact that the PS3 is being outsold hand over fist in Japan.

[Mwynn]

Sony and Microsoft will continue to pump out systems and software. That is all I care about, a video game landscape with just Nintendo would be horrible.

[Nitecrawlah2]

Why would someone mention Microsoft when the topic's regarding Sony quarterly losses? No wonder I don't venture into the gaming threads as often as I'd like.

It's a tough spot for them to be in. Going in, the company knew that the system cost more to produce than its retail price, yet were banking on the highly profitable accessory sales to immediately shore up those losses. I don't know if they expected the losses to be so huge that even the other divisions of the company could only cover a third of the gaming division's loss, though. This next-gen business seems to be tough for everyone BUT Nintendo, which is hardly what anyone expected I'm sure.

[Mr.Musgrave]

Sony and Microsoft will continue to pump out systems and software. That is all I care about, a video game landscape with just Nintendo would be horrible.

And they won't be if they keep losing money like they are. Sony is bleeding money like a stuck pig thanks to the PS3

[Mwynn]

Why would someone mention Microsoft when the topic's regarding Sony quarterly losses?


Because the analyst report for MS was reported, then it turned out to be way off.

[Biofungus]

The numbers are about the same. If what Marvin posted is accurate (and I'm skeptical, mainly because of the source. Hmmm... bloomberg.com posts about Sony, and the best Marvin can counter with is a blog that doesn't even site sources?) it's still 1 billion a year for both Xbox and PS3 (not to mention, Sony took *years* to start making a profit on the playstation, only to have it dragged back into the mire with PS3. MS is pretty much on track, but even that sourceless blog article states MS *may* have hit in the black with Xbox. Nobody's speculating that with Sony and the playstation anymore ;)

I totally expected both companies to show a loss in their gaming divisions. That was a given. But Sony's on track to continue hemorrhaging (time to update the business model, guys), whereas Microsoft is climbing slowly towards breaking even.

[Biofungus]

Why would someone mention Microsoft when the topic's regarding Sony quarterly losses? No wonder I don't venture into the gaming threads as often as I'd like.

Because anything that makes Sony look bad (even um... the facts :p ) Marvin feels the need to counter by trying to make microsoft or nintendo look bad. This is why Marvin has a reputation as a Sony fanboy.

[Biofungus]

Sony and Microsoft will continue to pump out systems and software. That is all I care about, a video game landscape with just Nintendo would be horrible.
But it's not all you care about, Marvin. Otherwise you wouldn't be so hard up to constantly defend Sony, despite their piss poor business model and tactics. If this was truly all that mattered to you, then you wouldn't feel the need to post a comparable (but factually weaker) report about Microsoft in a thread about how much Sony is losing.

[Mwynn]

Because anything that makes Sony look bad (even um... the facts :p ) Marvin feels the need to counter by trying to make microsoft or nintendo look bad. This is why Marvin has a reputation as a Sony fanboy.
Actually if you read my reply it was a positive for MS, because the 4 billion lost was not true. :banana:

Added how do you make a video game company look bad?

[Mwynn]

But it's not all you care about, Marvin. Otherwise you wouldn't be so hard up to constantly defend Sony, despite their piss poor business model and tactics. If this was truly all that mattered to you, then you wouldn't feel the need to post a comparable (but factually weaker) report about Microsoft in a thread about how much Sony is losing.
You are still missing replies, rushing to keep posting.

[Biofungus]

Who are these analysts and where do they get their numbers?
Here is one for microsoft.
http://www.joystiq.com/2005/09/26/forbes-xbox-lost-microsoft-4-billion-and-counting/
Btw, you do realize that this site is actually stating the *opposite*?

Forbes also says that the Xbox division isn't yet in the black, but we've seen evidence to the contrary.

So even though forbes says MS hasn't made money on the xbox division, Joystiq.com claims they've seen evidence that MS *has* made a profit on Xbox? Hmmm...

[Biofungus]

Actually if you read my reply it was a positive for MS, because the 4 billion lost was not true. :banana:

Added how do you make a video game company look bad?
You're right about that, as I responded to above. But it's easy to miss, and somehow, I get the impression you only saw the "MS looses 4 billion on Xbox" part ;)

Hey, don't blame me. When historically you're a rather over zealous Sony fanboy, it's hard to take anything you post on the matter with anything but a grain of salt.

[Biofungus]

You are still missing replies, rushing to keep posting.
Either way, you're still trying to defend Sony.

Instead of automatically assuming the analyst numbers are way off, why not wait and see?

[Nitecrawlah2]

The numbers are about the same. If what Marvin posted is accurate (and I'm skeptical, mainly because of the source. Hmmm... bloomberg.com posts about Sony, and the best Marvin can counter with is a blog that doesn't even site sources?) it's still 1 billion a year for both Xbox and PS3 (not to mention, Sony took *years* to start making a profit on the playstation, only to have it dragged back into the mire with PS3. MS is pretty much on track, but even that sourceless blog article states MS *may* have hit in the black with Xbox. Nobody's speculating that with Sony and the playstation anymore ;)
Yeah, Microsoft had to sit quiet for about 2-3 quarters before they saw the masses flock to the system (that, and their production numbers were lower than expected). This is exactly what I was thinking when saying that Nintendo is the only company from the big three who's immediately reaping from this next-gen console wars. I suppose not being able to meet the demand of your instantly profitable product because it's constantly sold out is a better problem to have.

[Mwynn]

Either way, you're still trying to defend Sony.

Instead of automatically assuming the analyst numbers are way off, why not wait and see?
You are making the assumptions here not me.

[Biofungus]

No, you even said it yourself, that the analysts were wrong on MS. You're posting that simply to get people thinking that the analysts are wrong on Sony, too.

Again, you're still trying to defend Sony. Problem is, you're jumping in front of the bullet before the gun is even fired.

[Mwynn]

No, you even said it yourself, that the analysts were wrong on MS. You're posting that simply to get people thinking that the analysts are wrong on Sony, too.

Again, you're still trying to defend Sony. Problem is, you're jumping in front of the bullet before the gun is even fired.
I'm gonna have to say wrong and end it there.

[Biofungus]

Then next time, in a sony thread, keep it about sony (even if the news being reported isn't good news) and nobody will speculate about your motives, nor will you continue to solidify your position as DW's number one Sony fanboy ;)

[Mwynn]

Then next time, in a sony thread, keep it about sony (even if the news being reported isn't good news) and nobody will speculate about your motives, nor will you continue to solidify your position as DW's number one Sony fanboy ;)
Nah I choose from moment to moment how to do things. You can speculate all you want, will not ruin my day.

[Mr.Musgrave]

There's nothing to speculate. You were wrong and you backed your wrongness with non-facts from a non-website as always. You're just trying to tap-dance around it. As always. I really hope you don't think you're fooling anyone.

[spider]

Moving on...

Nintendo are the only company right now breaking new grounds,
unless you're someone who digs graphics over everything else I think most are happy with their regular xboxes and PS2s and the dozens of games available for them.

Only PS3 games I'm dead hyped for is MGS4 and the next GTA.

[DanMatrix]

Moving on...

Nintendo are the only company right now breaking new grounds,
unless you're someone who digs graphics over everything else I think most are happy with their regular xboxes and PS2s and the dozens of games available for them.

Only PS3 games I'm dead hyped for is MGS4 and the next GTA.

Thats true, once they realease some of the big hits like the new GTA and Halo 3 sales will pick up. For me, there hasn't been any games on 360 or Ps3 that I'd want to play so much as to buy the system. Some are definately coming though.

[Biofungus]

The problem is, the xbox, and even moreso the ps3, are not just "oh, I want to play that game so I'll buy the system" consoles. There has to be quite a few games you really want to play to justify the cost.

[Nitecrawlah2]

The problem is, the xbox, and even moreso the ps3, are not just "oh, I want to play that game so I'll buy the system" consoles. There has to be quite a few games you really want to play to justify the cost.
Feels like the X-Box 360 finally jumped that stigma this past Christmas season with their now well-established library of games. Post MGS4, I think Sony's games will (ideally) follow suit.

[Calloway]

Wow, didn't see this one coming ... :rolleyes:

As for microsoft losing money, yeah, they planned it that way.

They can afford it.

Sony can't as the buisness as a whole was already losing money and the subject of COUNTLESS news shows.

I'll say it again as I said before, their gonna dump the ps3. Common sense dictates that.

[Calloway]

Feels like the X-Box 360 finally jumped that stigma this past Christmas season with their now well-established library of games. Post MGS4, I think Sony's games will (ideally) follow suit.


well, halo3 will definitly see a spike in 360 sales and I wouldn't count on mgs4 for ps3 quite yet. You gotta remember, not that many ps3 systems are in consumers hands as 360 or wii systems. I'm not talking sales, I'm talking total already sold.

[Troy Wall]

The moral of the story is that if I were a rich man, I'd own all the systems and play games all day and night and live happily ever after.

:cool:

[Toyandgadgetguy]

The moral of the story is that if I were a rich man, I'd own all the systems and play games all day and night and live happily ever after.

:cool:

You, me, and many of the other folks around here... even if they don't/won't/can't admit to it.

[Spacious Interior]

I don't know the intracaies of the hardware or the statistics concerning what's beter than what or which system has how many games or any of it. That's why I'm the butt of so many jokes among my gamer friends. I'm the ignorant one who just plays the same four games for fun. But I know this:

Many moons ago, I bought an xbox. Never had a single problem. Ever. This year, I got a 360. Again, no problems at all. A friend of mine picked up a PS3 and we all kinda migrated to his place for the great unveiling. Right out of the box it didn't work. It got as far as the initial setup thing and just cut off. So he took it back and echanged it and the second one never turned on at all. Just wouldn't work period. When he went back to exchange it again, I went with him and my jaw dropped A) because I had forgotten how much it cost, and B) because the kid behind the counter said....flat out said..."I told you to get a 360 and forget about this thing."

Wow.

A gaming magazine recently had an article about "what to do with your PS3". My favorite picture was of a Ps3 that had been modified with the top casing removed and hinged. When the sleek, black, curved top was lifted back, it revealed two brats and burger cooking happily. How the thing didn't melt is beyond me. May have been fake, but the idea of a $600 grill with Blueray capabilities made me giggle.

[Nitecrawlah2]

The moral of the story is that if I were a rich man, I'd own all the systems and play games all day and night and live happily ever after.

:cool:
Hell to the yeah!

[GIGAFATTIMON]

I hope everyone realizes Sony did still make a profit in spite of this

[Moonrider]

The sad thing is, I really really want a PS3 but by the time I got enough money to buy one the console will no longer be around if these losses keeps up.

Japanese gamers may choose PS3 over X360, but then Dreamcast sold well in Japan and they still loose a lot. Here in the underside of the world having a PS3 only counts for bragging rights, nobody really play them at all.

[Mr.Musgrave]

When and on what did they make a profit?

[GIGAFATTIMON]

Profits dropped by 68% (http://news.bbc.co.uk/1/hi/business/6660465.stm), they did not report a loss. You want to find out the minutia of what they made their profit with, be my guest, all I know is it definitely wasn't the PS3 that made any of it.

[Mr.Musgrave]

Okay...but a profit drop of 68% is not a good thing. Unless I'm missing what you're saying.

[Nitecrawlah2]

I hope everyone realizes Sony did still make a profit in spite of this
Revenues were up, profits were down.

[GIGAFATTIMON]

Okay...but a profit drop of 68% is not a good thing. Unless I'm missing what you're saying.

Yeah it is a very big drop, but it not a loss which seemed to be the implication of the thread.

[Lovecraft13]

Some customers might think the PlayStation 3's $599 retail price is high, but that's chump change compared to what the machine is costing Sony. The electronics giant today posted its financial results for the fiscal year and fourth quarter ended March 31, and as analysts predicted, the game division racked up significant losses.

For the fourth quarter alone, Sony reported an operating loss of $914 million from its game division, attributable primarily to the PS3. Sony's new machine was also responsible for a bump in gross revenue, as the company's gaming segment racked up sales of $2.4 billion, and helped push company-wide sales to $17.7 billion, up 12.6 percent from the previous fourth quarter.

The full-year picture for Sony's gaming division was similarly grim, with the PS3 driving an increase in revenues as well as operating losses. For its full fiscal year 2006, Sony's gaming group posted revenues up 6.1 percent to $8.6 billion, but suffered an operating loss of nearly $2 billion.

According to Sony's financial report, "This deterioration was primarily the result of loss arising from the sale of PS3 at strategic price points lower than its production cost during the introductory period, as well as the recording of other charges in association with preparation for the launch of the PS3 platform."

Sony's figures peg PS3 shipments at 5.5 million systems for the fiscal year, with 13.2 million games to go along with them. As for how its older systems fared, Sony reported hardware sales were down for the PlayStation 2 and PlayStation Portable. The company shipped 14.2 million PS2s for the year, down 2 million from the year before, while PSP shipments totaled 8.4 million, down 5.7 million from the year before. Since then, PSP shipments have slowed significantly, with less than 1 million PSPs arriving in North America and Europe since September of 2006, and a negligible amount in the January-March quarter.

The software picture looked a little brighter, as Sony said 54.1 million PSP games shipped to retail, up 12.5 million from the year before. However, PS2 game shipments dropped 30 million to 193 million units.

For the current fiscal year, Sony expects its game division to post better results, but still lose money.

"An increase in sales is anticipated as a result of the full-scale expansion of the PS3 business in Japan, the United States, and Europe," Sony said in its quarterly report. "In addition, a significant reduction in operating loss is expected due to rapid reductions in hardware production costs and an enhanced line-up of software titles in the PS3 business."

-gamespot

[hardinart]

Okay the other thing you guys need to keep in mind is that Sony is like ten huge companies rolled up into one. Sony Computer Entertainment the company responcible for the PS3 counted on taking major losses for the console just like they did for the PS2. So Actually they did take a HUGE loss but it was offset buy the 9 other companies under the Sony "umbrella". What SonyCE did not count on was the Wii (which actually makes money off each console sold as well as the game) and the X-box kicking its butt in numbers of consoles sold. If SonyCE dosen't come out with some serious exclusive games (which will be a lot harder with less consoles sold), it is going to be in trouble. Expecially if it looses the Hi-Def format war (blu-ray vs. HD-DVD).

What games have you guys played that make it worth $600 bucks (plus the 60 bucks per game) so far? Resestance Fall of Man has been my fave but as of right now my PS3 has not paid for itself at all. I figure that when a major comic ;) book company launches its Online Universe though Sony Online that might change.

[Shin_Jinlaw]

Dude! Do you know that HD-DVD is a losing format? And we all know that the 360 has been trumping on sales against the PS3.....it has been out for little over a year. Everybody has been saying that Sony's been in trouble for many of years now, ever since the PS2 has came out. But I don't see how that the 360 has been winning this war, and over the last holiday season the PS3 had sold 3.12 million units worldwide. That's over what the 360 had sold, and beating them by 8 to 1.

I'm not saying that I don't like the 360. I'm planning on owning the system before July because of a few games that I do like on there. But as far as exclusivity? We'll see some titles to come out soon. After all, this is the beginning of what Sony has to offer.

And can we all say "Metal Gear Solid 4: Guns of the Patriots"? That game has been officially exclusive, and everybody STILL wants to say that it's coming out for the 360. I don't see how can Kojima productions can fit 50.3gb on a regular disc, since if he DID do that the game will take up like 5-6 discs? :yuk: :sure:

[Mr.Musgrave]

Okay the other thing you guys need to keep in mind is that Sony is like ten huge companies rolled up into one. Sony Computer Entertainment the company responcible for the PS3 counted on taking major losses for the console just like they did for the PS2. So Actually they did take a HUGE loss but it was offset buy the 9 other companies under the Sony "umbrella". What SonyCE did not count on was the Wii (which actually makes money off each console sold as well as the game) and the X-box kicking its butt in numbers of consoles sold. If SonyCE dosen't come out with some serious exclusive games (which will be a lot harder with less consoles sold), it is going to be in trouble. Expecially if it looses the Hi-Def format war (blu-ray vs. HD-DVD).

What games have you guys played that make it worth $600 bucks (plus the 60 bucks per game) so far? Resestance Fall of Man has been my fave but as of right now my PS3 has not paid for itself at all. I figure that when a major comic ;) book company launches its Online Universe though Sony Online that might change.

You do realize that it's Sony as a whole we're talking about and not just the video game division, correct?

[Mr.Musgrave]

[I]But I don't see how that the 360 has been winning this war,


It's not. The Wii is. By leaps and bounds.

[Shin_Jinlaw]

It's not. The Wii is. By leaps and bounds.


What's up my man? :)

But from my sources, and what I've been reasearching, the PS2 is beating out Wii, the 360, and even Sony's own PS3 by 10 to 1.

[Mr.Musgrave]

Hah. I don't know where you're getting those numbers but they're way wrong.

Here are the official sales reports for April 30th - May 6th from Media Create.

Hardware - This Week | Last Week | YTD | LTD
1. DS - 285,192 | 256,063 | 2,888,392 | 16,894,071
2. Wii - 101,320 | 102,522 | 1,452,172 | 2,371,815
3. PSP - 35,172 | 33,860 | 839,395 | 5,371,524
4. PS2 - 14,815 | 12,584 | 324,604 | 20,479,463
5. PS3 - 12,974 | 12,791 | 417,056 | 874,614
6. 360 - 3,205 | 3,162 | 93,550 | 358,252
7. GBA - 653 | 1,125 | 35,307 | 15,333,386
8. GC - 394 | 167 | 6,763 | 4,176,231

And nintendo has the Top 21 and 26 of the Top 30 games sold.

[ponyrl]

http://www.yankidank.com/gallery/albums/art/Dreamcast.sized.jpg

To heck with those new systems.

Make mine DC!

(hey, everyone else decided to change the topic of this thread)

:D

[Nitecrawlah2]

http://i114.photobucket.com/albums/n252/Nitecrawlah2/DC.jpg

:har:

MGS4 will probably be my reason for nabbing a PS3 down the road. At least I'll have it in time for the next Gran Turismo game when it's released in 2012.

[hardinart]

http://www.yankidank.com/gallery/albums/art/Dreamcast.sized.jpg

To heck with those new systems.

Make mine DC!

(hey, everyone else decided to change the topic of this thread)

:D

Word to your mother.

[hardinart]

You do realize that it's Sony as a whole we're talking about and not just the video game division, correct?

Yeah I have a bad habit of reading like the first two posts and not the gagillion posts that follow. So yeah you guy and Lovecraft 13 pretty much summed up my point.

[hardinart]

Hah. I don't know where you're getting those numbers but they're way wrong.

Here are the official sales reports for April 30th - May 6th from Media Create.

Hardware - This Week | Last Week | YTD | LTD
1. DS - 285,192 | 256,063 | 2,888,392 | 16,894,071
2. Wii - 101,320 | 102,522 | 1,452,172 | 2,371,815
3. PSP - 35,172 | 33,860 | 839,395 | 5,371,524
4. PS2 - 14,815 | 12,584 | 324,604 | 20,479,463
5. PS3 - 12,974 | 12,791 | 417,056 | 874,614
6. 360 - 3,205 | 3,162 | 93,550 | 358,252
7. GBA - 653 | 1,125 | 35,307 | 15,333,386
8. GC - 394 | 167 | 6,763 | 4,176,231

And nintendo has the Top 21 and 26 of the Top 30 games sold.

I thought 360 had sold 11 million as of March 2007. Hmmm....

[Mr.Musgrave]

I thought it seemed a little low too but shipped and sold are often passed off as one another.

[Biofungus]

What is the "L" in "LTD"? I thought at first it was "Lifetime To Date", but there's no way the Nintendo DS has outsold the Gameboy Advance yet.

[Mr.Musgrave]

Oh, I wouldn't say that. The DS sells like free sex. I'd be amazed if it hasn't outsold the Advance.

[Calloway]

You have to figure for the 360 how many systems are already out there. I'm pretty sure they out number ps3 and wii only due to the fact they are not as in demand with so many houses having one (in ref to the wii) and ps3 is a slow seller so their stringing it along to a lower spot then 360 at the same point.

[Biofungus]

But the GBA has been around for about 5 years, and has always been the top selling handheld. the DS a year and a half, and costs almost as much as a console (actually, it costs more than the PS2 does now). GBA started at 99 bucks. I'm not saying the DS isn't selling well, but I'm almost postive the GBA has sold WAY more than 15 million units. I seem to remember hearing almost twice that more than a year ago.

[Calloway]

I was going by consoules...I don't consider handhelds among those.

[Troy Wall]

But the GBA has been around for about 5 years, and has always been the top selling handheld. the DS a year and a half, and costs almost as much as a console (actually, it costs more than the PS2 does now). GBA started at 99 bucks. I'm not saying the DS isn't selling well, but I'm almost postive the GBA has sold WAY more than 15 million units. I seem to remember hearing almost twice that more than a year ago.

DS debuted in Fall of '04, so it's more like 2 & 1/2 years old, and the GBA in early '01, making it about 6 years old. Right now the DS sells for about $130...that's hardly the price of a current console. PS2, sure, but it's a soon-to-be-abandoned machine that's been refashioned to cut production costs.

[Biofungus]

Just checked:

GBA: June 11, 2001
DS: November 21, 2004

But I knew the numbers were off: (from Wikipedia)
Number of units sold as of March 31, 2007
(all versions)
79.46 million million (worldwide)
16.66 million (Japan)
41.10 million (Americas)
21.71 million (Other)

Nintendo DS:
Worldwide (including DS Lite): 40.29 million

Xbox 360:
Worldwide: 10.4 million sold as of December 31, 2006[1][2]
United States: 4.5 million consumer sales as of December 31, 2006.[3]
Japan: 330,091 consumer sales as of March 4, 2007.[4]

So the numbers that Steve posted are likely Japan ONLY.

Just to add contrast;
Playstation 3 (worldwide)
Units sold 3.0 million+
Units shipped 5.5 million+

Meaning Sony has sold (to retailers) over 5.5 million units (ie they've already made as much money off of the consoles themselves as they can). That also means that almost half of the units that Sony has shipped, are still sitting on shelves. That's got to tell you something...

[Mr.Musgrave]

Whoops. You might be right. My mistake.

[Biofungus]

No biggie.

Actually, it helps add another dimension to the discussion. Sony took a loss on the PS2's, but at least those units *sold*.

I do agree that it's still fairly early yet, and Sony really needs to get some worthwhile software out there and soon. Thing is though, for that few units sold, exclusivity isn't really going to help, and multi-platform? Gamers will just go with the 360 version.

I don't think Sony will cut off the PS3 like Greenie suggested, because that would be admitting fault and surrender (and I just don't see Sony doing that. They tend to bury things quietly, except there's too much history/buzz around the PS3 to dig it a silent grave), but they really did shoot themselves in both feet this time.

[Mr.Musgrave]

It won't help that apparently MGS4 is now being bumped back to March 2008. So much for a big christmas seller if this is true.

http://www.ps3fanboy.com/2007/05/14/gamestop-says-no-metal-gear-solid-4-until-2008/

[Biofungus]

If it's any consolation for them, they probably won't need to produce any more units for awhile ;)

[Moonrider]

Maybe they should endorse that boobies pong controller to boost sales before then.

[Nitecrawlah2]

Just to add contrast;
Playstation 3 (worldwide)
Units sold 3.0 million+
Units shipped 5.5 million+

Meaning Sony has sold (to retailers) over 5.5 million units (ie they've already made as much money off of the consoles themselves as they can). That also means that almost half of the units that Sony has shipped, are still sitting on shelves. That's got to tell you something...
I wonder if the 20GB units being recalled factor into those numbers as well?

It won't help that apparently MGS4 is now being bumped back to March 2008. So much for a big christmas seller if this is true.

http://www.ps3fanboy.com/2007/05/14/gamestop-says-no-metal-gear-solid-4-until-2008/
Foot? Here's mouth :laugh: .

[Calloway]

No biggie.

Actually, it helps add another dimension to the discussion. Sony took a loss on the PS2's, but at least those units *sold*.

I do agree that it's still fairly early yet, and Sony really needs to get some worthwhile software out there and soon. Thing is though, for that few units sold, exclusivity isn't really going to help, and multi-platform? Gamers will just go with the 360 version.

I don't think Sony will cut off the PS3 like Greenie suggested, because that would be admitting fault and surrender (and I just don't see Sony doing that. They tend to bury things quietly, except there's too much history/buzz around the PS3 to dig it a silent grave), but they really did shoot themselves in both feet this time.

Sega had to do that. So did Phillips. 3Do. Nec. The company as a whole still isn't doing great and I can see what would be the first thing cut. They were riding on it being a cheap blu ray player more then a gaming machine. The machine has faults (not working from the get go) an extremely huge lack of games for a couple years. If you want to spend 600 just to play gt, then let me the first to call you an idiot.

[Calloway]

http://www.nytimes.com/2007/05/17/business/17sony.html?_r=1&n=Top%2fNews%2fBusiness%2fCompanies%2fSony%20Corpo ration&oref=slogin