What is Digg?Warning: The Content in this Article May be Inaccurate
Readers have reported that this story contains information that may not be accurate.99 Comments
- slimthps, on 10/12/2007, -10/+60The author has no idea what he is talking about. They don't lose money for every PS3 they sell, they just lose more money on every PS3 they make. That's what the PS2 did, that's what the Xbox did, and that's what the Xbox360 did.
Also the price of manufacting the PS3 will decline drastically over the next few years. BRANCHING OUT and using new, untested technology will make any product expensive. - cal01, on 10/12/2007, -8/+35The author has no sense of economics. Sony does not lose money on every console. Rather, they -do not recoup- what they have spent. That's a very big difference.
For example, it's not that they instantly lose $200 every time they sell a PS3. Rather, they have already spent X billions in manufacturing, then failed to make a profit with their gross income.
It's a loss that stemmed from investment and pre-sales, not the other way around.
edit: To clarify more, Sony is hurt more if people -don't- buy their consoles, because they cannot make back their initial costs. - krische, on 10/12/2007, -2/+17You guys are correct. They don't "lose" money by selling a ps3, they just don't make back all of the manufacturing costs. But they make back the difference by charging so much controllers/accessories. I also belive that game developers have to pay a percentange Sony/Microsoft/Nintendo for creating games for their systems.
- Afrotronics, on 10/12/2007, -0/+14LOL, the title totally made me laugh. There was a lady that came up to me at work (I work for RadioShack) and she asked me if we had any Playstation 360's about a month ago.
- ReCkLeSsX, on 10/12/2007, -5/+18We don't need these silly rumor/conspiracy stories on Digg.
The author simply has no idea what he's talking about. - GarethSaxby, on 10/12/2007, -4/+16If your post doesn't set off the fanboy alarm bells, I don't know what does... Well, your profile does too, in all honesty. You're talking about something you don't know, purely because you're a fan. The specification of the RSX isn't that fantastic, and it'll probably struggle to pull out 1080p on most games. Developers aren't going to offload graphical calculations onto the Cell either, so it ultimatly doesn't make that much of a difference. There have been numourous developers speaking of how the PS3 and 360 are evenly matched, and graphically I'd have to say, there probably isn't going to be $100 of difference there (360 premium vs PS3 20GB). I can see slightly better graphics, but lest we forget, last generation the Playstation 2 had the least power and came out on top. I don't see why that having more power means it will come out ontop this time, unless you believe the Xbox should have suceeded.
Still, I will agree, the article reeks of someone stabbing around for something to report on. For starters, next year? Heck, I don't see anything like that happening. Also, Sony is still going to make money with the PS3. It's not going to fail, and I can even see myself buying one once the price drops a bit here in the UK. Sure, Sony has screwed up pretty badly at too many points to count, especially compared to Nintendo and Microsoft, but they're not going to sell the brand... I can't see them selling the brand ever, if I'm honest. I also agree with your statement about the HDMI cables, taking the price of Monster cables and other "Premium" connectivity cables that do next to nothing for a digital communication standard is a very bad move. - Smwbigboss, on 10/12/2007, -6/+15Thats right, they make laptop batteries also.
- CMGNEWS, on 10/12/2007, -5/+13 Ahhhhhhh no. Sony will not lead this generation unless we are all living in an Internet bubble and the rest of the planet hails the arrival of the PS3 as the next big step cause they are blissfully unaware of all of Son'y problems (still very likely I might add).
But sinking the company? No.
The article is kind of exagerating isn't it. - SomeJerk, on 10/12/2007, -0/+8I've said it before and I'll say it again.
Digg is fair and balanced just like Fox News. - john2kx, on 10/12/2007, -4/+12....and the award for worst domain name goes to..... ElectricSistaHood!!!
- NanoStuff, on 10/12/2007, -4/+11Ok, change of plans. Everyone buy a PS3!
- Pharaoh777, on 10/12/2007, -2/+8Meanwhile, back on Earth - I'll pick up an HDMI cable for $10.
- djSyndrome, on 10/12/2007, -7/+13What a bunch of pedantic *****. The author takes the worst possible numbers in every situation, and flat out makes up facts when they suit his meaning. If you're paying $125 for an HDMI cable, then you've probably paid $100 for Monster (component - not HDMI) cables to hook your 360 up to your TV and surround sound system as well. The comparison is void.
Sony's not going to go broke. They will carry the Japanese market easily (especially with the price drop), and their exclusives - onces they hit - will handily outsell any Microsoft counterparts. They will lose marketshare, that's for certain, but when the dust settles in the next 24 months, they will still have a majority of the worlwide gaming market. - xXShadowstormXx, on 10/12/2007, -3/+8Sony + Microsoft.
Imagine the DRM... - P5ycHo, on 10/12/2007, -4/+9I see at least you can keep your head cool. Lets just wait & see what happens.
But these types of stories are really getting old now. - sakuraz, on 10/12/2007, -5/+10I think this is a great theory only to Microsoft fanboys...for obvious reasons.
To other LOGICAL people, this was a waste of time, energy, and the chance to read a better article.
It's practically saying "We know PS3 is so great, but we already bought 360. Let's dream of a future where our mistakes are not mistakes anymore!!!" - jacenat, on 10/12/2007, -0/+5fox isn't fair and balanced
wait ... that you beeing sarcastic, right?
bummer .. - skaface69, on 10/12/2007, -4/+8I personally thought that the article was clearly stated and while much was spectulatory, it was a good read. I agree somewhat with the author, i don't believe that that Sony will be selling off PlayStation anytime soon. If the Sony continues to screw up, people are going to start selling off their stocks. Now this has nothing to do with PlayStation v.wii v. 360, it has to do with investors making money. They are not going to stick with a sinking ship. If investors start to get more nervous about Sony's future, as the launch day approaches, and start selling off their Sony stock, this situation could possibly play out. If you look at the stock over the last 6 months to a year, the stock has been in a decline. Its going to be interesting to see how this all plays out.
- icantdrawanime, on 10/12/2007, -3/+7If you want to be heard, say something so obviously overstated that no man in his right mind would fail to say youre wrong.
- ZeonZumDeikun, on 10/12/2007, -1/+5ENGLISH *****!! DO YOU SPEAK IT?!?
Please. I love fanboyism but I hate dumbasses. Rephrase that for the love of humanity... - impulsiveboy, on 10/12/2007, -3/+7How the hell did this hit the front page? Sony's stock on the NYSE is sitting at around 40 right now. That's mid-rage as of lately. Assuming the PS3 hits the market in the next year, they're set to recoup their initial run of PS3s at the very least. To put it in plain black and white, the Playstation is a brand name and brand names like that sell. It's up in the air if it'll be a hit, sure. I'll allow the article that, but look at the last year's stock report. Do you see investors worrying?
This front page space should be going to a YouTube video of the Colbert Report instead. - HappyScrappy, on 10/12/2007, -0/+4Marked as inaccurate. And this action would be illegal anyway.
There's simply no evidence of Sony's profit margin (or deficit margin) nor any malice from MS.
Additionally, this again gets an automatic digg down for stating that HDMI cables cost more than they do (in this case, $99). Standard HDMI cables, like the PS3 use, cost $20. They are $8 at Monoprice.
If you aren't clued in enough to know how much an HDMI cable costs, you aren't clued in enough to hold court on the future of HD gaming. - swimmingbird67, on 10/12/2007, -3/+6every story that has been submitted from from "electric sista hood" website is a bunch of crap.
- gwolf, on 10/12/2007, -0/+3If you aren’t recovering your capital investment through sales, you are losing money.
Why on earth would Microsoft want to buy into that, other than to take the competition out of the market? I think this rivalry is of benefit to their strategy. It allows them to differentiate themselves from a popular similar competitor, AKA the buzz effect. Lets face it; a one man boxing match just isn’t that interesting.
Now if Apple were to buy Sony’s game division; that would be interesting. - tdogg241, on 10/12/2007, -2/+5I'd say it's not the PS3 that could ruin Sony. It's Blu-ray. And even then, I really doubt that it'll ruin them completely. After all, they developed Betamax, Minidisc, and SACD (among other failed formats/technologies) and likely never made a dime off of any of those.
They'll be ok. - Boor, on 10/12/2007, -0/+3From the title I thought it was going to be an article about how it would be a good idea for microsoft to send out people to buy up as many PS3's as possible and then just blow them up or throw them somewhere. Thereby making less real people own PS3's which meens less software sales (which is what they will be making profit on). I have an over elaborate imagination sometimes.
- ZeonZumDeikun, on 10/12/2007, -1/+3Eurpoe is always choppy ground. I doubt the Wii will sell there since everyone seems to be incredibly good at video games. Microsoft has a high chance of succeeding there, but Sony still has the most rabid fanbase in the UK as far as I've seen.
Seriously, they DOWNGRADED Pursuit Force's difficulty from the European release to bring it to the USA! I kid you not! - RiemannLebesgue, on 10/12/2007, -2/+4Ah, the wonderful responses to this by the Sony fanboys on Digg just make me giggle. They can't admit to themselves what Sony is doing.
- NSMike, on 10/12/2007, -4/+6Buying a PS3 will ONLY hurt Sony if they all sell out, and then just sit in the box, unused, and you don't buy games for them. That would create a false demand, cause Sony to produce more, sell them, and if this second crowd doesn't buy games too, THEN and ONLY then will buying a PS3 hurt Sony.
Anyone can see how implausible that line of thinking is. This article is bunk. - blanktarget, on 10/12/2007, -1/+3Who posts these kinds of things? It's like hitting a beehive with a stick....
- AzraelKans, on 10/12/2007, -0/+2Oh my! you know what, why dont we just stop talking about real consoles, and invent imaginary consoles of our own? Mine is the WheezerS! has a sensor movement a cray computer CPUI and a teledildonic interface, It has just the same real value as this post.
Seriously guys, We kind of noticed you liked the Wii, but reality check
1.-Nobody (besides us who watch internet news) knows what the heck is a Wii. We dont really know how well is going to work out on the common average Joe to which the Wii is targetted to.
2.-Sony happens to be a multimillion dollar company that goes through electronics, movies, tv and entertainment, the entertainment division only is large enough to buy Nintendo. Sony itself could buy Microsoft (if they were for sale) Sony is going through a "crisis" due to the blue ray and the HD (which looks like will eventually be accepted) , they had already gone through a crisis with the betamax, survived and created the playstation and the PS2 their best sellers ever. Sony is not going anywhere for a PS3 "crisis".
3.-Sony is not dying, Not even the PS3 is dying the PS3 is getting sold, specially now they dropped the price in Japan. The PS3 already had the same ammount of presales than the Wii BEFORE they showed the Japanese the final version and the Price Cut in the TGS
4.Remember Kids, there's 200 million ps2 users in the world, it needs less than 0.5% of them to sell out the current PS3's in existence. (or in the making actually)
5.-The Wii itself is not "the ultimate console ever!" Nintendo themselves know the Wii is some wacky experiment looking to atract non gamers to gaming. Eventually the Sensor controller (if succesful) is can and will be copied to any console system (pc. xbox, ps3 you name it) Nintendo knows that so I have no doubt they are already working in a far more capable hardcore console in the backburner.
I mean seriously guys some Wii games look like this:
http://www.theultrageeks.com/spanish/wp-content/uploads/2006/09/wingisland01.jpg
So please lay down the crack pipe, or at least stop digging up any story with the phrase Wii is great or giving Sony some hard time,. Specially if its made of bull crap. - cal01, on 10/12/2007, -2/+4No, but the total manufacturing costs of one (ie. startup fab, etc) are very expensive. Hence why supply is a problem right now.
- Mystikal, on 10/12/2007, -0/+1Google will buy out Microsoft. Youll see.
- RicDesan, on 10/12/2007, -2/+3The losses on the on the ramp up to console supremacy will occur as they always do and Sony will take the hit as they always have. Even given the conservative estimates magnified by the article, it will not be chump change. But to a corporate behemoth like Sony, they're losses its prepared to endure and will be mitigated over time.
The thing that will be a dragon-slayer in this case and Will break the proverbial back is tying your bread and butter product line to a BR content delivery format that doesn't already own the market as CD's did for PS2. If BR doesn't win AND right away the loss will really raise its ugly head and the defection from the Sony camp will be unlike anything its ever dealt with and not something as a company, you just "shake off." Remember we are talking about the UberKing of failed media formats!
This is the issue that BETTER be keeping Sony up at night ... eggs in one basket and all. - dleary, on 10/12/2007, -2/+3Does a single blue diode cost $200? If not, I don't see the price dropping 'dramatically'. Say it costs $100 to manufacture a blue diode (still seems too expensive to me), and the price of manufacture is cut in half... There's a whopping $50 saving on the next PS3.
The PS3 will drop in price, and it will cost $200 to buy one in 5 years, but we're not going to see it "cheap" anytime soon. - mchammer, on 10/12/2007, -0/+1WOW sony is worth much more than microsoft because tons of different technologies that they do and create. Saying the PS3 will cause a $64billion dollar company to fail is like saying Vista will cause M$ to fail (even though vista cost more to develop than PS3) i lol because they're both delayed and high priced. Why does no one metion M$ is in $4billion in debt because of xbox and they still sell original xboxes at a loss?
- sonicworx, on 10/12/2007, -0/+1No digg on this article. This is such baloney.
- cal01, on 10/12/2007, -2/+3RicDesan: Once the cost of manufacturing blue diodes comes down, which I'd imagine will be pretty soon, the cost of the PS3 will plummet dramatically.
- bookishboy, on 10/12/2007, -0/+1Actually, MS could hurt Sony just as badly by re-imbursing employees for buying a PS3.... and then not buying any games for it. They have the cash reserves ($38 billion last time I read) to buy a crapload of them and just sit on them.
"Employee rewards plan: We'll give you $650 for every $600 PS3 console you go out and buy, then bring to us. Stipulation: The console must be bought by itself, with no games and accessories. It must be turned in with the receipt and be the only item listed on the receipt. The box must be factory sealed, un-opened. No bundled purchases will qualify for this offer."
They won't do it though, because MS has enough employees who hate them, or at least disagree with their policies. The attempt would be leaked, and the bad publicity would likely be more damaging to them than any damage they had done to Sony. - zanvann, on 10/12/2007, -0/+1Gah...horrible article.
Profit is in the software, not the hardware. - NYC10004, on 10/12/2007, -4/+5The author has a very accurate take, for a shot in the dark. Take it from somebody who actually works on Wall Street. PS3 aspirations aside - SONY really is dying kids. Samsung alone has savaged the company's expected earnings for two years straight, cutting deeply into the frontier dominance of HD and peripheral interfaces, such as DVD, that SONY should have enjoyed. From all indications SONY is poorly managed in most divisions, which is the telltale death nell of any financial giant.
- nreynolds, on 10/12/2007, -1/+2@ sambtravis
What movie studios are backing out? Universal? The only movie studio that never supported Blu-Ray in the first place? If you get all your news from digg, at least read the comments (I assume you saw the articles saying Universal "backed out of Blu-Ray camp"), not just the headlines so we can tell you if a story is ***** or not. - acurism, on 10/12/2007, -1/+2This might just be one of the stupidest posts I have seen yet at Digg!
Inaccurate and marked as so - jacenat, on 10/12/2007, -1/+2i have no doubt they will reign japan and the us again.
but think about it ... if microsoft heavily focuses on europe, they can push away sony VERY easy and aquire a HUGE share there that could put them closly behind sony or even slightly ahead of them.
i don't like microsoft, but seeing them doing launch parties in almost every EU country with massive european advertising ... and they do have a cheaper machine that has an overall game catalouge thats almost identical to that of the ps3. franchises and stuff don't matter in europe that much.
of course ... the article is crap.
but even i, as a firm sony fanboy, can't see how sony's gonna make it in europe when the console costs almost double the price of japan, and is delayed after christmas. - reklis, on 10/12/2007, -0/+1A couple of years ago the trendy thing to say was that Microsoft was going to buy Nintendo, that rumor went about as far as this one will go
- cbiz, on 10/12/2007, -1/+2Before all the PS3 setbacks the game unit posted an almost billion dollar loss for this fiscal year pushing down Sony's total operating profit by almost 50%. Sony is no longer the heart of entertainment in the living room...
- ElectricGrandpa, on 10/12/2007, -1/+2"But they make back the difference by charging so much controllers/accessories. I also belive that game developers have to pay a percentange Sony/Microsoft/Nintendo for creating games for their systems."
Definitely they have to pay a huge chunk to the console manufacturer... No idea how much, but that's how they make a lot of their money back(and because all three console companies also publish some of their own games) - urbanpitch, on 10/12/2007, -0/+1What about the Nintendo PlayStation 360. now THAT sounds better
like, an all-in-one "SYSTEM"!!!!!, COOL!!!!, I'd buy that
lol, hahaha on the comment above - nreynolds, on 10/12/2007, -1/+2you're somewhat right, but the games cost ALOT of money to make. Dev kits alone cost tens of thousands of dollars. Unless you're talking about a disk, case, and burning the game to the disk, in which case: you forgot about all the other stuff.
- ZeroMP, on 10/12/2007, -0/+1Maybe if Microsoft bought EVERY console that Sony made and no controllers and no games - instead just scrapped them out for parts... then did the same thing again with the next batch of consoles they made - then perhaps... no, still wont work.
It would only cost them 300M to buy the entire launch stack - which would screw devs more than anyone. Now they could peddle them all on ebay for 500M and turn a 200M profit off Sony's losses, but then you've still got all those fools buying controllers and games.
It would never happen but I would laugh my ass off to watch Sony taking it in the shorts producing these things while Microsoft raked in a huge profit gouging them off on ebay. -
Show 51 - 99 of 99 discussions
Browsing Digg on your phone just got easier with our enhancements to the 
© Digg Inc. 2009
— Content created and posted by Digg users is 