i thought they already broke even and were making profit?
DFC Intelligence president & senior technology analyst Wanda Meloni spoke at the GameON: Finance 2.0 conference in Toronto, weighing in the major console manufacturers' futures. According to a Gamasutra report from the event in Toronto, Meloni believes that Sony may never break even on the PlayStation 3 platform because of the losses incurred on each console sold.
Sony announced its quarterly results earlier today, showing improved PlayStation hardware sales, but ultimately posting a hefty loss.
We're unsure if Meloni was drinking the corporate Kool-Aid, factoring in the 10-year lifecycle Sony has planned for the hardware. Meloni also believes that Sony's slice of the console market share, at 67% during the PlayStation 2 era, will shrink to 50% or below.
http://kotaku.com/5070746/analyst-so...ak-even-on-ps3
i thought they already broke even and were making profit?
Nintendo is the only one who consistently makes money selling the consoles. Everybody else makes their money via the software sold.
Yeah, even if they make a little bit of a loss with the hardware. They will still make more back from the software sales.
Jamotto - So Nintendo is the only company making profit from their consoles?
PSN (PS3/PS4/Vita)/NintendoID - Triv1umx
Steam - Rjinswand
Runescape - Rjinswand
...the PS3 does seem to be doing better in terms of sales now. I think they'll get profitable before too long. The PS2 took a year to become profitable; Sony gambled on bigger hardware in the PS3, and that's slowing profitability.
Of course, Microsoft lost as much as $4 billion on the original Xbox, and even the 360 hasn't been a triumph considering the billion or so they've had to spend fixing their hardware missteps.
I don't think Sony's going to dominate the console market this time around, though. Price is a big factor, and people bought cheaper PS2s in droves in favor of the more-powerful XBox.
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