PlayStation 3 is Finally Not a Money Loser for Sony
Now the PlayStation 3 costs less than $300 to make.
Can you believe that the PlayStation 3 launched in 2006 at $599? And even at that price, Sony was taking a $200 hit on each one sold. In fact, Sony was still selling the consoles at a loss up until recently. Now, things are finally turning around at the $299 price point on the PS3 Slim.
In an interview with IGN, Shuhei Yoshida, president of Sony's Worldwide Studios, said, "This year is the first time that we are able to cover the cost of the PlayStation 3," Yoshida said. "We aren't making huge money from hardware, but we aren't bleeding like we used to."
Sony said that it will take some time to bask in the glory of a non-bleeding state, so don't expect a price cut any time soon.
"We have lots of great games coming out and innovations with Move and 3DTV, so we don't believe this is the time for us to think about a price drop," he added.
Instead, Sony will consider bundle options to add value to the PS3 (especially with Move on the horizon) rather than cutting the price.
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2006: Blu-ray drive, $600. Rest of the PS3? Extra!
I always thought the business model on consoles was interesting - companies willing to take a loss (huge for some of them) on the hardware, to get the items into homes, so people will buy games, etc for them. It's crazy that they are just at the point of not losing money.
This is why Microsoft didn't include everything in their consoles. (HD-DVD at the time, WiFi etc would have added a higher prices tag) X-boxes would have probably been around the same price.. But how many people honestly bought the PS3 cause of the Blu-Ray player? *Raises hand*
Ha ha Nintendo made money on every Wii sold from day one.
hand raised!
The money is in the games that are way overpriced. I can see paying more for a game if is original (some do come out) with new coding, lots of good gameplay and such but most games come off a cookie cutter press mentality (think movie games) and they pump them out.
Ha ha Nintendo made money on every Wii sold from day one.
The Wii has also been a **** console from day one.
*Post edited by moderator* Cool it on the language.
Honestly, I may be a dinosaur, but I still think Blu-Ray is not worth the $10 premium for a higher definition content. I still prefer DVD despite the lower resolution especially from cost & flexibility standpoint.
The Wii has also been a **** console from day one.
The market wholeheartedly disagreed. Nintendo's job is not to make a great performing console but to make a product that will sell. They made the right moves and were rewarded.
Nintendo's job is not to make a great performing console but to make a product that will sell.
Doesn't that just confirm what I said? In other words, the Wii IS a **** console?
Just because it sells doesn't mean it's good. Dollar stores get plenty of business, but you also get the crap that you paid for.
*Post edited by moderator* Cool it on the language.
I guess good news for Sony.
Doesn't that just confirm what I said? In other words, the Wii IS a console?
Any idiot can put together high-end hardware, it's the easiest thing in the world. The Wii is smaller, cheaper, uses less power and sold better than the competition. How is that not good?
The purpose of a product (in this case a console) is to sell, that's the only reason it's made. A product that fulfills its purpose is a good product and the fact that Wii is underpowered compared to the competition just underscores how good it is.
Sorry, I can look at consoles only from a business perspective, I wouldn't be caught dead using any of them.
Time for the PS4
(I'll probably get a million red thumbs down for this but)
I agree with killerclick that the Wii is a great product. By great, I mean successful. They fill a market and Sony & MS would love to have their numbers. Some of you "real gamers" assume the authority to decide who belongs to your prestigious "gamers" group. So go ahead. Spend your thousands $$ on gamer PCs .. me, I'll just go back to playing Super Mario Galaxy - (which I consider a REAL FUN GAME) -- and continue visiting THG because I like Tech news.
Hah, and it only took 4 years
. It was loosing so much money that I'm surprised it took so long, as well as that it was left alive bleeding money like it was. I really doubt that Sony will make money on the PS3 overall, but I guess we'll see.
Amen Xerroz! The console all have sucky controls for FPS like COD or BF2. Wii rok'd their socks and other console don't compete for the market niche the Wii targets. XButt and Piss3 are good in graphics and BD for the Piss3. I bought the Piss3 because the price of a good Bluray player was so close and I could stream to the PS3. I don't use it to play games because there are no good controls for it. it's a player and that's it and very very very very suky wireless.... g? pleeeezee. If you want to game go with PC for sure.
In the future: Sony loses $10 for every "Move" sold.
In the future after that: Sony increases PSN Plus fee to $70 a year and increases "Move" by 50%
In the future after that: Sony "Move" no longer money loser
2006: Blu-ray drive, $600. Rest of the PS3? Extra!
BR drive cost at launch was $125.00. RSX was $129.00. Cell was $89.00.
(I'll probably get a million red thumbs down for this but)I agree with killerclick that the Wii is a great product. By great, I mean successful. They fill a market and Sony & MS would love to have their numbers. Some of you "real gamers" assume the authority to decide who belongs to your prestigious "gamers" group. So go ahead. Spend your thousands $$ on gamer PCs .. me, I'll just go back to playing Super Mario Galaxy - (which I consider a REAL FUN GAME) -- and continue visiting THG because I like Tech news.
Its true that the Wii has been successful from a business standpoint, but they must be careful, lest they repeat the problems that ultimately destroyed the Atari.
The constant struggle going on with consoles is finding the balance between giving freedom to developers, while maintaining quality control. Nintendo seems to have removed all quality restrictions these days... Their game market is saturated with boring titles that sell only a few copies. Nintendo makes a few dollars, then its over. The problem I referenced with Atari was that their market, too, was saturated with cruddy titles that constantly failed to deliver ANYTHING (E.T. comes to mind).
Nintendo isn't there yet, but that ratio of good-to-crap games is starting to get in the unacceptable range. Granted, Atari had no means to control the content, but the idea is the same.
Oh, and congrats Sony. Should stop some of the hemorrhaging of cash they are going through now.
LOL @ anyone trying to compare the wii to the ps3. Wii is for children and grandparents, the games are absolute trash and the nintendo exclusives are getting old. Any gamer that thinks a PC can replace PS3 is missing out on a ton of exclusive titles. MGS4, GOW3, LBP, GT, Uncharted etc...
I'm happy for sony, they have had the best console since the original playstation and its about time people start realizing what the PS3 can actually do.
This gives Sony a $200 price cut range they can perform at any time. They really should bring the price down back into "bleeding" so they can finally compete on the price of consoles and outsell the others.
Enjoying a profit per console isn't as important as selling more consoles than anyone else.
The market wholeheartedly disagreed. Nintendo's job is not to make a great performing console but to make a product that will sell. They made the right moves and were rewarded.
If there is another crash in the gaming industry it will undoubtedly be because of Nintendo's tactics this genertation.
Why buy a PS3 or 360 when you can get the same best games on PC? It's redundant to buy a Ps3 or 360 and build a $1000 rig. I own a Wii to get my hands on games that don't exist on other platforms. Don't forget that those 2 consoles (360/ps3) are also shitty in the way that 90% of their games are FPS, which as we all know, are god awful on consoles when you compare it to PC.
Name one PS3 exclusive (which happen to be some of the best games available on any console) that is on PC.
Any gamer that thinks a PC can replace PS3 is missing out on a ton of exclusive titles. MGS4, GOW3, LBP, GT, Uncharted etc...
Well the only way to be able to play every good game on the market is to have all the consoles plus the PC. Seeing how I use a powerful PC in any case, it makes sense to not buy stupid kiddy consoles just so that I could have a few extra games made for the widest possible audience (dumbed down as much as possible).
If there is another crash in the gaming industry it will undoubtedly be because of Nintendo's tactics this genertation.
Didn't Nintendo's CEO come out and say this is already happening because games just aren't good enough? Wouldn't have anything to do with the substandard hardware of the Wii...
The Wii sold and made a huge installation base very quickly based on the price of the hardware. Game makers scrambled to pump out games for a platform they had no faith in at launch. Now that platform simply can't keep up with the evolution of games and few good quality games exist for the Wii.
I have all three consoles in my home. The Wii is the only one I can't play from my couch. I have to be about in the center of my living room (or sitting on the coffee table) and the controls have poor accuracy and latency issues. The image quality is glaringly obvious in my living room and as more people experience games on the other two consoles I think they are moving away from Wii.
Yeah So what, they had to gut the machine of half of its appeal before doing so. No backwards compatibility in hardware OR even software, and recently they took the Alt OS capability away. They slashed the price but it does LESS and less with every revision! Isn't it supposed to be the other way around? Oh.. the hard drive's bigger now. Yahoo!
Its true that the Wii has been successful from a business standpoint, but they must be careful, lest they repeat the problems that ultimately destroyed the Atari. The constant struggle going on with consoles is finding the balance between giving freedom to developers, while maintaining quality control. Nintendo seems to have removed all quality restrictions these days... Their game market is saturated with boring titles that sell only a few copies. Nintendo makes a few dollars, then its over. The problem I referenced with Atari was that their market, too, was saturated with cruddy titles that constantly failed to deliver ANYTHING (E.T. comes to mind).Nintendo isn't there yet, but that ratio of good-to-crap games is starting to get in the unacceptable range. Granted, Atari had no means to control the content, but the idea is the same.Oh, and congrats Sony. Should stop some of the hemorrhaging of cash they are going through now.
Apparently people like to eat ****. That's why Nintendo is successful this generation. I can't believe people are falling for it again with 3DS. Release all the same old games on a handheld with a 3.5" screen that does 3D without glasses and will probably cost twice as much as a DS=win.
Any idiot can put together high-end hardware, it's the easiest thing in the world. The Wii is smaller, cheaper, uses less power and sold better than the competition. How is that not good?The purpose of a product (in this case a console) is to sell, that's the only reason it's made. A product that fulfills its purpose is a good product and the fact that Wii is underpowered compared to the competition just underscores how good it is.Sorry, I can look at consoles only from a business perspective, I wouldn't be caught dead using any of them.
Maybe you should be using Intel integrated graphics because they're cheap, easy to produce and sell so well!
*Post edited by moderator* Cool it on the language.
Name one PS3 exclusive (which happen to be some of the best games available on any console) that is on PC.
Oh come on, that's a total oxymoron. It would be like asking someone to name one auto manufacturer besides Ford that makes the Mustang, Focus or F150. I do have all 3 consoles plus a decent gaming PC so I understand the value of owning them all.
Maybe you should be using Intel integrated graphics because they're cheap, easy to produce and sell so well!
This is not a valid comparison because integrated graphics are not a consumer product. You can't go to the store and buy an IGP. If TVs came with integrated Wiis then your analogy would make sense.
Also, I wouldn't use an IGP for gaming but I also wouldn't use a console for gaming. I wasn't commenting on whether gaming is better on the Wii or on PS3 (it's all crap compared to a PC), I was commenting on Nintendo's business decisions which had paid off as they sold 70 million Wiis compared to 35 million PS3s and 40 million Xbox 360s.
Dang! That means my PS3 is 4 years old... It doesn't even seem like it's been that long.
Ha ha Nintendo made money on every Wii sold from day one.
money maker for Nintendo, money loser for everyone else