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Sony getting killed
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Old 29 Jan 2007, 04:04 PM   #1 (permalink)
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Default Sony getting killed

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Analysts: Sony Profits Could Fall 50%
Blame placed on Nintendo's initial success with Wii.
By Patrick Klepek, 01/29/2007

When Sony reports their third-quarter earnings tomorrow in Japan, the news may be anything but cheery, as the Bloomberg news service surveyed five analysts for profit forecasts, calculated the median number and concluded Sony profits may fall as much as 50% from last year's earnings -- 84.1 billion yen ($680 million) vs. 168.9 billion yen ($1.39 billion) Unexpectedly, the culprit appears to be costs associated with PlayStation 3, and the Bloomberg report paints the rocketing success of Wii as a major financial factor.

"A drop in third-quarter results is largely expected on the games division. There's no surprise unless the company further reduces its profit forecasts," said Mitsushige Akino, who monitors $468 million in assets at the Tokyo-based Ichiyoshi Investment Management Co., told Bloomberg.

PS3 hasn't been the only trouble Sony's experienced in 2006, however, as they also struggled through a battery recall that cost the company tens of millions. Still, for the third quarter alone, Bloomberg's analysts are pointing their fingers at the game division. Other areas at Sony, such as their television business and movie studios, did much better in the tail end of 2006, helping pad the bottom line.
Wii is outselling PS3 3.5 to 1. Sony is going to be in trouble for years at this rate. Their holiday launch was fucking horrible, they don't have any games and people are in love with their Wii's and DS's. I hear the PS3 is on a 10 year cycle. I think that's how long it's projected before they turn a profit with it. How can the almighty PS be in such a shitty position? It used to be sony's most successfull property. Now their games division is a liability costing them HALF of their profits! And BTW, sony pres says you should get a second job to buy one and that they should be more expensive.
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Old 29 Jan 2007, 04:08 PM   #2 (permalink)
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I don't know if this is the case in the US, but at Best Buy they RAISED the price of the ps3 by $50. Thats crazy.
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Old 29 Jan 2007, 04:26 PM   #3 (permalink)
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Originally Posted by Rebel
I don't know if this is the case in the US, but at Best Buy they RAISED the price of the ps3 by $50. Thats crazy.
Yeah, they did that all over Canada.

http://www.1up.com/do/newsStory?cId=3156748

lmao.
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Old 29 Jan 2007, 05:03 PM   #4 (permalink)
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Every store around here has had stacks of PS3's for a while now...Wii on the other hand is fucking impossible to find. A guy at work has been trying to get one since launch day and still has yet to find one.
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Old 29 Jan 2007, 05:19 PM   #5 (permalink)
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What's really funny, is that Sony fanboys shit on the Xbox 360 for being a Shooter console, but then the best game on the PS3 is Resistance: Fall of Man, which is guess what? A shooter

Multi-plat games have been reviewed to be better on the 360 as well. It costs $200 less to have a better gaming experience. Wii has the innovative controls. So what does PS3 offer that you can't get with the competition? Hmmm...
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Old 29 Jan 2007, 05:48 PM   #6 (permalink)
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Well the price is unreasonable and the lineup is shitty so far..but that'll change.
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Old 29 Jan 2007, 07:18 PM   #7 (permalink)
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Yeah it'll get better as time goes by. But its pretty sit that nintendo and playstation ar eboth getting pawned by XBOX which is pretty much just good graphics at the cost of gameplay IMO.
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Old 29 Jan 2007, 07:39 PM   #8 (permalink)
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Quote:
Originally Posted by XeR0
Every store around here has had stacks of PS3's for a while now...Wii on the other hand is fucking impossible to find. A guy at work has been trying to get one since launch day and still has yet to find one.
I found mine at the first stop I made. Just lucky I guess.



Quote:
Originally Posted by BtoFu
Well the price is unreasonable and the lineup is shitty so far..but that'll change.
Quote:
Originally Posted by DrDoom
Yeah it'll get better as time goes by.
No it won't. When the PSP first came out it was sold for $250 dollars, since the release it has only dropped $25. In the month of December do you know what the number one selling system was? It was the DS. Now Sony is well aware that people would much rather have a DS than a PSP or even a PS3, but they refuse to drop their price anymore.

They have already made tons and tons of mistakes which I could sit here and list for you, but I do have a life. The limited supply of PS3s and the price alone should of been the signal to Sony that this system was not going to sell well.

Plus it is Sony so don't expect a better lineup or price drop for a long time, and when you do get a price drop expect it to be a drop of no more than $50.

Bottom line, it will not get better as time goes by. Maybe they will learn of their mistakes for the PS4. On a side note, they better not keep calling their next gens PS_(Insert number here). I don't want to see a PS5, PS6 or PSAnything on the market anymore.
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Old 29 Jan 2007, 07:51 PM   #9 (permalink)
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I'm sure come next Christmas the price will drop will be fairly significant..this is the nature of the beast and has been since the original Playstation came on the market. It's only 11 months and if they're projecting a ten year run it's more than likely the biggest developer can get a firm grip of their market again. You're saying December had DS at the top..obviously, considering that Nintendo is the most kid friendly developer out there, the price was fair compared to the PS3 and it was Christmas - where kids score their DS'. Companies botch releases and PR work all the time, doesn't mean they're going under - in fact the PS3 is probably the strongest vehicle out of the big three for well established fanbases - look at all those sequels they have coming out on that machine that people will end up paying $60 a pop for in time. I'm not saying it'll get up and kill Nintendo or anything because I'm not one for marking over brands..just that it's unlikely that they're going under heavily and won't be able to recover in due time.
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Old 29 Jan 2007, 07:55 PM   #10 (permalink)
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Quote:
Originally Posted by BtoFu
I'm sure come next Christmas the price will drop will be fairly significant..this is the nature of the beast and has been since the original Playstation came on the market. It's only 11 months and if they're projecting a ten year run it's more than likely the biggest developer can get a firm grip of their market again. You're saying December had DS at the top..obviously, considering that Nintendo is the most kid friendly developer out there, the price was fair compared to the PS3 and it was Christmas - where kids score their DS'. Companies botch releases and PR work all the time, doesn't mean they're going under - in fact the PS3 is probably the strongest vehicle out of the big three for well established fanbases - look at all those sequels they have coming out on that machine that people will end up paying $60 a pop for in time. I'm not saying it'll get up and kill Nintendo or anything because I'm not one for marking over brands..just that it's unlikely that they're going under heavily and won't be able to recover in due time.
The DS is like what $200, meanwhile the PS3 is $600 with $60 bucks a game. That is a no-brainer for me if I'm a parent.

When the PS3's price does drop, DO NOT expect a significant drop. Not until the PS4 comes out.
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Old 29 Jan 2007, 08:07 PM   #11 (permalink)
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Again it just comes down to the demographic..Playstation has a market wherein many of their games are now aimed at adults - who may buy a PS3 with their children in mind but it's not too much of a stretch to say that most owners of PS2 are 16 or above..and can afford to buy for themselves. If a large portion of that consumer pile is going to invest in the next generation then they'll become accustomed to the new price range if they think the product is worth it. Dunno about you but looking at Metal Gear 4, I'd gladly pay $60 for it. Look at the price of DVD players when they first rolled out compared to now - the videogame horizon takes to the same effect to become saturated. It won't be 7 years before they chop off a couple of hundred.
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Old 29 Jan 2007, 08:14 PM   #12 (permalink)
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Quote:
Originally Posted by BtoFu
Again it just comes down to the demographic..Playstation has a market wherein many of their games are now aimed at adults - who may buy a PS3 with their children in mind but it's not too much of a stretch to say that most owners of PS2 are 16 or above..and can afford to buy for themselves. If a large portion of that consumer pile is going to invest in the next generation then they'll become accustomed to the new price range if they think the product is worth it. Dunno about you but looking at Metal Gear 4, I'd gladly pay $60 for it. Look at the price of DVD players when they first rolled out compared to now - the videogame horizon takes to the same effect to become saturated. It won't be 7 years before they chop off a couple of hundred.
That is one of Sony's many problems, they don't have enough games that people are willing to pay $60 bucks for. Also with Sony it very well could be 7 years before they chop off a couple of hundred.
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Old 29 Jan 2007, 08:33 PM   #13 (permalink)
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I'm getting a Wii regardless of if I go for a 360 or PS3...

That shit is straight up genius...for fuck's sake...X Play gave the Wii version of Dragongay Z Budogay the award for best fighter just because of how cool it is to play on the Wii...of course this was a shitty year for fighting games, but...well, real gamers shit on Dragongay Z...and X Play admitted as much in giving the award...

Yeah...the Wii will be in my home. Every home probably should have one...

Late.
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Old 29 Jan 2007, 09:16 PM   #14 (permalink)
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woooo. i had a friend that was desperate and he traded me his xbox 360 for a mobile phone with a camera. Now since the phone cost me nothing and eb will trade me $300 for the 360 that at least starts knocking the price down that im going to have to outlay for the ps3 come march 23rd
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Old 30 Jan 2007, 03:58 AM   #15 (permalink)
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The price is too high and that has cost them dearly. The Wii's price is very reasonable, about less than £200, which is ok. Whereas the PS3's price is so high, pretty much only the rich can afford it and not everyone is rich.

Then the obviously lack of good games on the PS3 isn't really going to encourage people to buy a PS3. I feel when the price drops and more games are released then and only then can PS3 compete with the Wii and 360, but i think its fair to say Sony has lost this one already, it'll be hard to make a comeback after 360 and Wii's success.
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