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Sony still losing money on PS3 Slim |
Listed in: PS3 Tags: Amazon, Kazuo Hirai, playstation 3 updates, PlayStation Network, Sony
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They've managed to cut manufacturing costs down by 70 percent. They've released a slimmed-down hardware iteration at a lower price point. So, is Sony finally making money on the PS3 Slim after bleeding money when the console first launched? The short answer is... No.
Sony honcho Kazuo Hirai said as much in an interview with Times Online. As for the long answer, Hirai said that while they're not making any money on hardware alone, if you consider everything from hardware and peripherals to software, well then yes indeed, they've been profitable since the last fiscal year.
Here's Hirai's answer when asked if Sony is still losing money on the Slim:
If you're just talking about the hardware alone, the quick answer is yes. That makes good headlines, but I don't actually know that that's the true nature of the business that we're all in, whether it's PlayStation, Xbox or the Wii. I think the better indicator is to look at the business as a whole platform, to ask: are you profitable in terms of the hardware, software and peripherals. And the answer t o that question is yes on a gross profit level since the last fiscal year.
Related articles:
Via Times Online
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Comments
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In short: Sony is going to have to start charging online fees on there next console (PS4)
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But the biggest problem with this way of thinking is the way that Sony is approaching the situation. When the PS3 was first launched, Sony tried to convince their target audience that it wasn't a gaming console, it was a all-in-one media device, and after that it was a home computer. Now, with their current advertising and the release of the PS3 Slim, they're once again trying to glorify how much the console can do without paying enough attention to the games.
In short, some people might buy a PS3 simply because it's an incredible piece of technology at a decent price, but the biggest majority of the market is going to buy it for the games, and THAT is what Sony needs to focus on the most.
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That said, pretty much everybody loves taunting others over perceived faults and problems. It's kinda like tabloids, only with more truth (I would hope.)
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"to ask: are you profitable in terms of the hardware, software and peripherals. And the answer t o that question is yes on a gross profit level since the last fiscal year."
So they do NOT need fees in order to make money, apparently.
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Also charging for batteries and battery chargers (I had a 360 for 3 years, had to buy 4 batteries because they either stop working or lose their charge way too quickly), overpriced cheapo headsets, etc....
Who knows, maybe the built in battery will die in a year in my PS3 controller and i'll have to buy a new one...but I doubt it, considering my PSP's battery, which is 4 years old, still holds a charge very well...probably only lost an hour of playtime since it was brand new.
It's all about people buying a console, sony losing money there, but making up for it with PSN titles and games....and they REALLY hope people will go buy furniture, clothes etc on PS Home....
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No system ever has released with the hardware making a profit for the company....they always take a loss on the hardware and hope to make it up with software.
The reason Sony wants you to think of it as a media device is that not only do they make money off Games, but they also make money off of Blu-Ray movies. Also they want people to start downloading more movies/TV Shows off PSN...which makes them more money.
I think they are doing the right thing.....whether you buy it for games, or media....they make money.
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