Sony: A Million PlayStation 3s Doesn't Worry Us
We're in it for the long haul says Tretton
Jack Tretton: what's a million PS3's between friends?
An article in the Los Angeles Times today quotes Jack Tretton, President and CEO Sony Computer Entertainment America as claiming that right now, "A million (PS3) units one way or another at this point isn't going to worry us."
This apparently blasé outpouring comes on the back of Tretton stating that, "We didn't get into PS3 for the first six months of 2007 — we're into this for the next 10 years and beyond".
One of the reasons holding the PS3 back - and apparently enabling the Sony U.S. executive to disparage a million units - is the PlayStation 2 itself. It is still selling, it is still pushing the brand and there is simply not sufficient incentive for PS2 owners to upgrade.
According to the article, while each Blu-ray drive shipped with PS3 costs $125 (£65) while, "Sony is still milking the PS2, with each sale producing $129 in profit." In fact, according to an ISuppli Corp figure quoted, "Sony has lost more than $240 on every PS3 sold".
Bear in mind, however, that PS2 was also a loss maker early in its life.
Sony declares its annual figures tomorrow.
The full article is available here.
This apparently blasé outpouring comes on the back of Tretton stating that, "We didn't get into PS3 for the first six months of 2007 — we're into this for the next 10 years and beyond".
One of the reasons holding the PS3 back - and apparently enabling the Sony U.S. executive to disparage a million units - is the PlayStation 2 itself. It is still selling, it is still pushing the brand and there is simply not sufficient incentive for PS2 owners to upgrade.
According to the article, while each Blu-ray drive shipped with PS3 costs $125 (£65) while, "Sony is still milking the PS2, with each sale producing $129 in profit." In fact, according to an ISuppli Corp figure quoted, "Sony has lost more than $240 on every PS3 sold".
Bear in mind, however, that PS2 was also a loss maker early in its life.
Sony declares its annual figures tomorrow.
The full article is available here.
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Comments
OptimusP 14 May 2007 16:19
1/6
Does Tretton also know that when supply is abundant, like in a million units, compared to the demand, the prices drop? Economics 101 Jack...
Dave 14 May 2007 20:56
2/6
Does Tretton know he's talking crap, ps3 is losing support every day as devs shift their focus to the Wii and 360. They're rumored to be losing something like $240 per console and even if they get their costs down by the end of the year, they will simply have to cut the price by the same amount to survive, so the $240 loss per unit will remain for some time. Are Sony worried, you bet they are!
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angryaztec 15 May 2007 07:00
3/6
"...we're into this for the next 10 years and beyond".
^^^^ 10 years? LOL
In 5 years you'll see the next generation of Nintendo & Microsoft game consoles. By the next 5 years you'll see the next generation after that. So if the PS3 can't even deal with the 360 and the Wii… what makes Sony think the PS3 can handle the consoles that will supersede the present ones that are kicking PS3's butt NOW?
And the PS2 NEVER had it this bad. Never. I'm tired of reading some apologists trying to compare the PS2 with the PS3 like if history was going to repeat itself... It's a totally different thing now. Oh! but history will repeat itself. But in a different way. Sony will experience what Nintendo went through since the Nintendo 64 days when it fell from the top spot in the hearts and minds of gamers. You guest it..it's Sony's turn!
^^^^ 10 years? LOL
In 5 years you'll see the next generation of Nintendo & Microsoft game consoles. By the next 5 years you'll see the next generation after that. So if the PS3 can't even deal with the 360 and the Wii… what makes Sony think the PS3 can handle the consoles that will supersede the present ones that are kicking PS3's butt NOW?
And the PS2 NEVER had it this bad. Never. I'm tired of reading some apologists trying to compare the PS2 with the PS3 like if history was going to repeat itself... It's a totally different thing now. Oh! but history will repeat itself. But in a different way. Sony will experience what Nintendo went through since the Nintendo 64 days when it fell from the top spot in the hearts and minds of gamers. You guest it..it's Sony's turn!
Gaz 15 May 2007 09:01
4/6
Fact is Sony makes most of it's money through software sales. So they'll probably manage just fine. They do however need to make the public aware that the PS3 is so much more than just a games machine. their advertising is rubbish. I love my PS3, it's a great bit of kit and for an equally spec'd Xbox 360, I'd have to pay £500. So weirdly it's a bit of a bargain.
ilh 15 May 2007 09:18
5/6
Even if they were all in Japan where it's the cheapest, and all the 20Gb model, that's nearly $500 million worth of goods just sitting there and they're making a loss on everyone of them anyway, so to them it's much more than half a billion.
Dave 16 May 2007 18:37
6/6
Gaz wrote:
Fact is Sony makes most of it's money through software sales. So they'll probably manage just fine. They do however need to make the public aware that the PS3 is so much more than just a games machine. their advertising is rubbish. I love my PS3, it's a great bit of kit and for an equally spec'd Xbox 360, I'd have to pay £500. So weirdly it's a bit of a bargain.
What sales?
Sony have SHIPPED 5.5 million consoles, they've SOLD around 3 million worldwide and that's nowhere near enough of a user base to start clawing back the developement costs anytime soon, let alone start to make a profit. Meanwhile developers are starting to switch focus to Wii and 360. I and many others have been predicting this from the start but fanboys never listen to reason.