David Perry's Keynote: Sony Will Never Make Money on the PS3

[wraggster]

Dontcha just love it when top execs start commenting on someone else's financials? Opinionated Acclaim chief David Perry ain't above it, in fact he used his keynote address at the Games Convention Developer's Conference to declare that Sony will never make real dough off the PlayStation 3, 10-year plan or no.

"Because of the cost of making the PlayStation 3 and because they sold it at a loss, Sony basically has pretty much no chance of making money on the PS3, because it's lost more money than they made during the entire peak of the PlayStation 2 — it's not going to happen again for Sony."

He went on to say that a PlayStation 4 coming out in the next eight or so years would be a bad idea. "If they release the PlayStation 4 and have an even more expensive console and raise the cost of games by ten dollars, that would not be good."

Thus, Perry said, this 10-year-plan for the PS3 is a long-term bid to wring out as much money to pay for the console's development, since the pricing and sales so far haven't done it. "This is going to force them to make the PS3 last longer and they're kind of positioning to do that," he said.

http://kotaku.com/5041033/david-perr...ney-on-the-ps3

[Mc_Logical]

Sean David Marcus Perry <-- me, mid grandad names, thought id share that lol uh! bored looking for a movie browsing

[Zin0099]

YOU SUCK PERRY!!!!! wait! sony will gain more customers later. FFversesXIII will be one of it's killer title which is why I have a ps3!!!!!!

[General Plot]

They may never make their profits back strictly in hardware sales, but the revenue from software and Blu Ray movie sales will certainly make up for that.

[JLF65]

Sony does a much better job of making money on their consoles than MS.

[Emulation_Chief]

Hello:

Perry is right about the losses. Sony is, in its core, a hardware company. The high costs of producing every part of the PS3 machine tremendously surpasses the price tag of each PS3 sold. I don't think they will recover from that, even with a 10-year plan they want to build.

Unlike PS2, which recovers thanks to lower priced DVD players, much cheaper parts and lower production costs, this new machine has a much more powerful technology 10 years ahead of time today. Making the Cell processor and the Blu-Ray player significantly increase the total cost production to levels they, I believed, even thought as impossible.

If software sales are successful, I'm sure they will not even make a break-even in total cost. Each BD-ROM to be produced cost around $25-30. The cheapest Blu-Ray movie that comes out new cost $30. I don't really think the movie industry actually make profits from Blu-Ray. HD-DVD would be more profitable if the Industry, and Toshiba itself, doesn't pulled the plug on this format.

On the games case, selling 1 million units doesn,t change much comparing to the sales of PS2 games. Even actually, top developers that release the same game on PS2 and PS3 actually make profits for the PS2 sales, far behind the PS3 ones. Even if the sales of PS3 games, in units sold, surpasses the PS2 ones, the high costs of pressing a BD-ROM is too high that the companies bearly can get a break-even, comparing to the almost 10 year predecessor.

Wtih these facts present, and any other to be confirmed in the near future, which console will really wins this generation. Consider not only total hardware sales and cost production, also on the software side.

[JLF65]

Hello:

Perry is right about the losses. Sony is, in its core, a hardware company. The high costs of producing every part of the PS3 machine tremendously surpasses the price tag of each PS3 sold. I don't think they will recover from that, even with a 10-year plan they want to build.

Unlike PS2, which recovers thanks to lower priced DVD players, much cheaper parts and lower production costs, this new machine has a much more powerful technology 10 years ahead of time today. Making the Cell processor and the Blu-Ray player significantly increase the total cost production to levels they, I believed, even thought as impossible.

If software sales are successful, I'm sure they will not even make a break-even in total cost. Each BD-ROM to be produced cost around $25-30. The cheapest Blu-Ray movie that comes out new cost $30. I don't really think the movie industry actually make profits from Blu-Ray. HD-DVD would be more profitable if the Industry, and Toshiba itself, doesn't pulled the plug on this format.

On the games case, selling 1 million units doesn,t change much comparing to the sales of PS2 games. Even actually, top developers that release the same game on PS2 and PS3 actually make profits for the PS2 sales, far behind the PS3 ones. Even if the sales of PS3 games, in units sold, surpasses the PS2 ones, the high costs of pressing a BD-ROM is too high that the companies bearly can get a break-even, comparing to the almost 10 year predecessor.

Wtih these facts present, and any other to be confirmed in the near future, which console will really wins this generation. Consider not only total hardware sales and cost production, also on the software side.

Your "facts" need some checking. You're WAY off on the price of BD discs... you can buy writeable BDs for less than $20 in single-unit quantities from retailers. The price of stamped BDs is BARELY more than CDs or DVDs and doesn't exceed $1. Movie studios make PLENTY from Blu-Ray, which is why they are all now stampeding to support it. Many of your other "facts" are similarly wrong. I find "doom and gloom" posts like these hilarious as the posters never seem to remember them after they're proven wrong. You see this every time there's a shift to new technology.

[F9zDark]

Hello:

Perry is right about the losses. Sony is, in its core, a hardware company. The high costs of producing every part of the PS3 machine tremendously surpasses the price tag of each PS3 sold. I don't think they will recover from that, even with a 10-year plan they want to build.

Unlike PS2, which recovers thanks to lower priced DVD players, much cheaper parts and lower production costs, this new machine has a much more powerful technology 10 years ahead of time today. Making the Cell processor and the Blu-Ray player significantly increase the total cost production to levels they, I believed, even thought as impossible.

If software sales are successful, I'm sure they will not even make a break-even in total cost. Each BD-ROM to be produced cost around $25-30. The cheapest Blu-Ray movie that comes out new cost $30. I don't really think the movie industry actually make profits from Blu-Ray. HD-DVD would be more profitable if the Industry, and Toshiba itself, doesn't pulled the plug on this format.

On the games case, selling 1 million units doesn,t change much comparing to the sales of PS2 games. Even actually, top developers that release the same game on PS2 and PS3 actually make profits for the PS2 sales, far behind the PS3 ones. Even if the sales of PS3 games, in units sold, surpasses the PS2 ones, the high costs of pressing a BD-ROM is too high that the companies bearly can get a break-even, comparing to the almost 10 year predecessor.

Wtih these facts present, and any other to be confirmed in the near future, which console will really wins this generation. Consider not only total hardware sales and cost production, also on the software side.

The company has lost, at most 200 dollars a console at launch; now they are probably losing closer to 50 dollars per console. With the smaller RSX and some fine tuning the day will come, sooner than later that they will start earning "some" profit (probably not much; but better than nothing).

[RicardoG]

Okay what does David Perry know about hardware?
I only know him for the games and nothing more!
People seem to forget that a few years ago the rage was all about PS2, and THIS guy made some profit on the PS2 with MDK 2 and some others, if he thinks that of the PS3 he should keep his thoughts to himself.
Geez what an ass!

[Emulation_Chief]

Hello:

Thanks to JLF65 and F9zDark for your post. Unfortunately, here in my home country, Puerto Rico, BD-R prices are the ones I stated in my last post. Even if I bought it for a cheaper price on a WebStore, the shipping will match the total cost of buying it at retail. I also would like more facts about reinforcing David Perry's view and also mine. Or refuting it.