Big Trouble for SONY and the PS3

PrinceLUDA21

PrinceLUDA21

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I was reading something on the PS3 Sony is in trouble sony is in trouble.

Sorry, but it looks like Sony is putting everything and all the chips on the PS3 to be a sucess. Sony has been in the thin money making side as of late. And the article may explain on why Sony has the price point of $499 and $599. It makes since now to me. But I do not forgive Sony

http://gear.ign.com/articles/709/709082p1.html


Check it out this may shed some light
 
The guy that wrote that sounds like he tried so hard to dumb it down that he made himself permanently stupid.

Money does not equal revenue. 1.65% is not an amazingly small profit margin in consumer electronics.

I'm not going to say that the PS3 will be a raging success just yet, but it's not the iceberg to Sony's Titanic. I really think the pricing is a mistake, but time will tell.
 
yea i hate journalist that flame a system when they just play demos. In demos gameplay, sounds, and the way it looks may change. Also i hate when the same ppl that flame it in a year,or two, later would be riding the system's C@CK..
IDK maybe Sony prolly did something to his kids or something..
 
I don't think it'll sink the Sony ship, but I do think it'll be a kick to the nads when the profits don't really blow their skirts up. I don't really want them to fail. But I do want them on the ropes and busting their tails to serve us, the consumer. Let them be a little desperate to give us top-end products at a low cost. Capitalism rocks.
 
sdman135 said:
yea i hate journalist that flame a system when they just play demos. In demos gameplay, sounds, and the way it looks may change. Also i hate when the same ppl that flame it in a year,or two, later would be riding the system's C@CK..
IDK maybe Sony prolly did something to his kids or something..
Click to expand...

I can't blame people for basing an opinion off of demos. Isn't that the purpose of demos in the first place- to get a good idea of what the developers are going for and what the finished product should resemble? Clearly you can't have a final verdict, but if certain journalists aren't impressed with something based off of a demo that the company chose to let them play then I'm fine with it. And if their opinions change with the final polished product I don't see anything wrong with that either. It would be different if they had nothing to base their negative opinions on so I don't have a problem with early impressions.
 
What's this about demos? The entire article was based on Sony's financials, not about the quality of the upcoming games.

There is some truth in what this IGN guy has written. 1.65% is a thin margin between a profit and a loss since Sony isn't just a consumer electronics company (film, music, television, etc.). That figure is the overall margin for the entire company including all groups. Consider that conglomerate competitors of Sony such as Apple and Microsoft posted margins of 9.97% and 31.59% respectively.

Still, I wouldn't worry about Sony all that much. In April of 2005 (their fiscal year ends in March) they posted an 85% profit increase over the previous fiscal year despite posting an approximate $530 million loss for the 4th Quarter. I believe they were still able to meet their payroll obligations.

The thing to look out for are the cash reserves for Sony. Though their revenues are always large enough to offset some losses from their various groups, the truth is as a corporation, Sony only possesses $5 billion in cash. That's almost 7 times less than Microsoft and this is why Microsoft has been able to stay in the game since the Xbox division has yet to turn a profit.

Microsoft's own worries will be growing as well with the delay (and poor reviews thus far) of their new operating system, Windows Vista and growing concerns over Google's expansion.

To conclude, Sony is not really in trouble, but to outperform the market expectations, they ought to act like they are. The PlayStation will continue to give them a nice cash cow, and really, Sony's already warned their investors about the initial costs and profit losses that will occur. If Sony can get the promised 6 million unit install base of the PS3 set by end of fiscal year (March 07), then everybody will relax. Despite the price points, if Sony ships 6 million units, I think 6 million will be sold.

Overall, Gerry Block's article is rather complimentary of Sony and seems optimistic about its future. Don't know why everybody got so irritated by it.
 
I think Sony will get 6 Million out, I mean 6 Million is like the State of NY and they are to cover the world it's not a hard sell. But those first Systems will suck a bleed the sweat outta some people. That may hurt sales. Sony has said the the Cell chip that will be in the PS3 will be made smaller after the March date and the new small chip will work better. To me it sounds like that the first systems will be more defective than thought to be. If the the chip is to be made smaller and better for the system then the originals will more than likey break down easily. I may be wrong but we'll have to see. Nov. !7 - March 07 is when we can tell on what is to come.
 
Prince, it's not about demand, it's about supply. The Xbox 360 plants initially were producing about 600,000 to 800,000 units per month, that, when given a five-month period between November and March, would give you a figure of 3 to 4 million units produced by March 06.

Sony, featuring a similarly complex device and dealing with a global launch, has the problem of creating capacity through distribution lines and making sure that the manufacturing plants are able to keep up with worldwide demand. A 6 million unit estimate by March is doable, but could be a dicey proposition.
 
True, but they are still competeing in the Blu-Ray DVD market so the parts for that will be shallow if not defective. Something just dawned on me, Sony pushed back there Blu-Ray DVD player date because of some reason, But could it be that they would like to have more parts for the PS3. I would, the DVD player is second as to my cash cow. So that may be the reason.


But Scribe who cares really, 6 Million will be more like 4.5 Million, maybe 5 Million. There is no way I think Sony could pull that off. I don't even think the migty Nintendo could pull that off in time.
 
It seems like, in this case, Sony is shifting it's reliance from a more casual gaming audience to it's more diehard supporters with the purchase of the PS3. I look at the specs, sure..the graphics on the FFX demo cinched my purchase of the PS2 for me, but I wouldn't have gotten if I couldn't have afforded the sticker price. The PS3 may be sleek, and cool, and does a lot of things but 600 dollars for a toy is not what I'd call a guaranteed buying decision.
 
If it was said, then i apologize for my next comment.....Coming from one show on Attack of the Show last week, they said a Sony representative had said that the price for a PS3 game would range from 59.99 to 100.00.............Ouch, their reasoning, it takes more money to make the game.....
 
Attack of the Show is stupid. The Sony guy said that they just might end up costing more than 59.99...but not 99.99.

Not that's much better.
 
Incorrect.........Go to the back of the bus Spuds!!............That's what the Sony spokesperson said, PROVE me wrong, little guy....heh
 
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