Sony has lost over $3 billion on the PS3

[jim boy]

It's just an example of lies, damned lies and statistics

profit from software AND winning the BluRay v HD-DVD battle >>>>> loss from discounted hardware

 

[mighty mick]

Of course it makes good business sense to sell the console at a lower price if you can compensate it with selling a decent amount of games. But what games?

How does the PS3 online service rate? I know it's free but did they try to push that in comparison to the 360 which you pay $100 yearly for?

Like someone has mentioned, if it doesn't get a great deal better i can't see a PS4 any time soon. Although i think the PS3 will hold it's own for a good few years yet due to the blu-ray i believe. Microsoft will have another xbox out within 3-4 years i'd say.

the bluray in the sony ps3 is not the final draft so a ps4 is inevitible as well as interactive blu ray content, sony jumped the gun.

 

[Karl Pilkington]

the bluray in the sony ps3 is not the final draft so a ps4 is inevitible as well as interactive blu ray content, sony jumped the gun.

The BR in the PS3 is fully upgradeable with firmware updates though. Any new specs for BR will be compatible with the PS3, including interactive content.

 

[mighty mick]

The BR in the PS3 is fully upgradeable with firmware updates though. Any new specs for BR will be compatible with the PS3, including interactive content.

not all upgrades are going to be fixed with firmware updates

 

[Karl Pilkington]

not all upgrades are going to be fixed with firmware updates

Got a link for any of this? From everything I've read, even though the PS3's original profile isn't going to be the final one, all profile updates are being done via firmware - and it actually makes the PS3 the only 'budget' level BR player that will be fully upgraded when the final profile is implemented.

 

[midorigreenwood]

It's just an example of lies, damned lies and statistics

profit from software AND winning the BluRay v HD-DVD battle >>>>> loss from discounted hardware

The myth that Sony is merely following the Razor/blade business model into profitability.

http://seekingalpha.com/article/343...haves-off-profits-leaving-competition-scruffy

 

[Karl Pilkington]

The myth that Sony is merely following the Razor/blade business model into profitability.

http://seekingalpha.com/article/343...haves-off-profits-leaving-competition-scruffy

What a shit article. The ******* who wrote it called the CEO of Berkshire Hathaway "Warrent" Buffet.

Sony are expecting to make about 10 billion in BR patents over the next 5 years, by the way.

 

[midorigreenwood]

wow, Kp I only posted the article one minute ago....literally!!!!

it is a freaking long article ....looks like you're only attacking the man rather than the argument.

not surprising because your other posts show that you should stick to videogaming rather than business analysis.

 

[Karl Pilkington]

wow, Kp I only posted the article one minute ago....literally!!!!

it is a freaking long article ....looks like you're only attacking the man rather than the argument.

not surprising because your other posts show that you should stick to videogaming rather than business analysis.

I'm a very fast reader.

Personally I completely disagreed with his entire hypothesis, because unlike a razor blade, video game consoles have a finite shelf life, not to mention the vast difference in manufacturing costs between systems.

It was very rudimentary and lacked any kind of meaningful insight.

 

[Lunchlady Doris]

It's just an example of lies, damned lies and statistics

profit from software AND winning the BluRay v HD-DVD battle >>>>> loss from discounted hardware

Hmm yes, keep thinking that. I'm glad I bought a PS3, it helped Sony to lose more money, and it's not like there's any games I want to buy.

 

[Lunchlady Doris]

The BR in the PS3 is fully upgradeable with firmware updates though. Any new specs for BR will be compatible with the PS3, including interactive content.

Can't update the slow-ass first gen speed through software.

 

[Karl Pilkington]

Hmm yes, keep thinking that. I'm glad I bought a PS3, it helped Sony to lose more money, and it's not like there's any games I want to buy.

But you didn't buy a PS3, LLD.

 

[midorigreenwood]

I'm a very fast reader.

Personally I completely disagreed with his entire hypothesis, because unlike a razor blade, video game consoles have a finite shelf life, not to mention the vast difference in manufacturing costs between systems.

It was very rudimentary and lacked any kind of meaningful insight.

KP..... are you for real?

You say you are a fast reader but look at the INTRODUCTION.

Gaming consoles and razors; games and razor blades. How many times have we heard this metaphor used to justify the losses taken on console sales in the name of making up this money and more on future game sales? I'll tell you - thousands. And you know what, everyone in business school has done case studies looking at the razor/razor blade phenomenon, yet somehow all those brainiacs have forgotten a few basic principles when considering this model as an analog to gaming:

He is saying EXCEPT for Nintendo (as they're an integrated hardware software manufacturer), using the Razor/Blade model to describe Sony and Microsoft's hardware business is incorrect.

He goes on to explain why including the

1)huge difference between upfront cost and profits from royalties in contrast to the razor/blade model

2) The difference between profit margins from first party and third party software as compared to the razor/blade model

Your reply shows that you have not read the post properly at all and couldn't even summarise his argument correctly.

That you call it rudimentary and lacking in insight is rich indeed

 

[Karl Pilkington]

KP..... are you for real?

You say you are a fast reader but look at the INTRODUCTION.



He is saying EXCEPT for Nintendo (as they're an integrated hardware software manufacturer), using the Razor/Blade model to describe Sony and Microsoft's hardware business is incorrect.

He goes on to explain why including the

1)huge difference between upfront cost and profits from royalties in contrast to the razor/blade model

2) The difference between profit margins from first party and third party software as compared to the razor/blade model

Your reply shows that you have not read the post properly at all and couldn't even summarise his argument correctly.

That you call it rudimentary and lacking in insight is rich indeed

What was the point of it then? What does it back up? What argument is it making in relation to Sony's profit/loss on the PS3?

Quite clearly you've introduced it to make a point. I figured you were using the razor blade analogy to throw your support behind the Wii? But now you're telling me you posted an article, that has a sole point of saying 'this is a terrible way of looking at the console market - but let me do it anyway' - is that about it?

 

[LIONS then DAYLIGHT]

Is the PS2 still going stong, maybe Sony could make up for the loss by selling more PS2's. I still love play Timesplitters and GTA3. These games have state of the art graphics probably equal to the PS3 in terms of graphics are these games.

 

[Karl Pilkington]

I still love play Timesplitters and GTA3. These games have state of the art graphics probably equal to the PS3 in terms of graphics are these games.

That's a joke, right?

 

[midorigreenwood]

What was the point of it then? What does it back up? What argument is it making in relation to Sony's profit/loss on the PS3?

Quite clearly you've introduced it to make a point. I figured you were using the razor blade analogy to throw your support behind the Wii? But now you're telling me you posted an article, that has a sole point of saying 'this is a terrible way of looking at the console market - but let me do it anyway' - is that about it?

again I reiterate........

KP...... are you for real?

you say you are a fast reader.....

but I have posted the introduction to the article twice now.....

READ THE INTRODUCTION AGAIN!!!

He says that analysts and companies like Sony have long use the excuse that "they are just following the Razor/blade model" to justify the huge losses incurred at the start of the life of their product. ie: Don't worry we'll dig ourselves out of this 3-6 billion dollar hole by selling lots of videogames.

He goes on to argue why that analogy is wrong as summarised above.

 

[Karl Pilkington]

again I reiterate........

KP...... are you for real?

you say you are a fast reader.....

but I have posted the introduction to the article twice now.....

READ THE INTRODUCTION AGAIN!!!

He says that analysts and companies like Sony have long use the excuse that "they are just following the Razor/blade model" to justify the huge losses incurred at the start of the life of their product. ie: Don't worry we'll dig ourselves out of this 3-6 billion dollar hole by selling lots of videogames.

He goes on to argue why that analogy is wrong as summarised above.

Sony aren't claiming to be digging themselves out through selling video games alone though, they'll derive income from multiple other streams APART from selling games. He has no point. And I don't know why you posted it, unless you have no point either.

 

[kaysee]

Forget KP's extremely biased comments when it comes to Sony... I mean "Wii sucks" just shows his true intelligence.

KP just can not fathom to hear, read, let alone write/say anything negative towards Sony... best to ignore his retorts... oh and he likes trying to have the final say.

 

[Karl Pilkington]

Forget KP's extremely biased comments when it comes to Sony... I mean "Wii sucks" just shows his true intelligence.

KP just can not fathom to hear, read, let alone write/say anything negative towards Sony... best to ignore his retorts... oh and he likes trying to have the final say.

Nothing to contribute to the actual discussion again? Don't really care to refute anything anyone has said or offer an opinion?

Not surprised.

 

[kaysee]

Nothing to contribute to the actual discussion again? Don't really care to refute anything anyone has said or offer an opinion?

Not surprised.

Karl "Lifeless" Pilkington's median response time = ~6mins

I have nothing to contribute regarding Sony's $3b loss on PS3... just find it funny. Even funnier they're hedging their bets on their PS3's BR player being it's saviour.

Gotta love the Wii though, it has innovatively taken gaming to a whole new market.

 

[Karl Pilkington]

Karl "Lifeless" Pilkington's median response time = ~6mins

I have nothing to contribute regarding Sony's $3b loss on PS3...

Lets be honest. You have nothing to contribute to anything.

just find it funny. Even funnier they're hedging their bets on their PS3's BR player being it's saviour.

Well they stand to make over 10 billion through that BR player you claimed was doomed from the start.

Gotta love the Wii though, it has innovatively taken gaming to a whole new market.

You call it an innovation, I call it a gimmick for children. Either way, in dollar terms its worked for Nintendo. But its hardly a surprise nobody is buying games for it (there aren't any good games for it yet).

 

[midorigreenwood]

Karl "Lifeless" Pilkington's median response time = ~6mins

hehe, nah don't worry...... I know his game pretty well...... was just testing him.

as you mention, kp's median response time...

I post this link to a pretty long article and the funny thing is a few minutes later he says its shit and lacking in insight when he obviously hadn't even read it through yet.

kinda embarrassing when he says he is a "fast reader" but was so left field when summarising the blogger's argument

 

[kaysee]

...
Well they stand to make over 10 billion through that BR player you claimed was doomed from the start.

"A bird in the hand is worth more than a bird in the bush"... nothing factual about that forecast.

You call it an innovation, I call it a gimmick for children. Either way, in dollar terms its worked for Nintendo. But its hardly a surprise nobody is buying games for it (there aren't any good games for it yet).

Nursing Homes using Wii for active entertainment for residents, parents playing with children, world leading corporate offices using Wii for team building and social events.... yep all gimmicks for children.

You're such a try hard KP it is funny to watch.

 

[Karl Pilkington]

hehe, nah don't worry...... I know his game pretty well...... was just testing him.

as you mention, kp's median response time...

I post this link to a pretty long article and the funny thing is a few minutes later he says its shit and lacking in insight when he obviously hadn't even read it through yet.

kinda embarrassing when he says he is a "fast reader" but was so left field when summarising the blogger's argument

Care to reply to my criticisms of it yet? Or just stalling?