Author Topic: Sony getting hit Hard lately (Read 873160 times)

jasonditz · « **Reply #700 on:** October 26, 2006, 06:01:09 AM »

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Originally posted by: couchmonkey
The reason nobody's losing their jobs yet is because the people who fire other people are the ones that needs to be cut loose. But you can bet Sony isn't going to fire Kutaragi or any other high-ranking types until PS3 is proven to be an absolute bomb, which is why Sony will not adapt quickly enough to Wii.

Oops, I've blown my cover! PS3 4EVER.

It's way past "adapt" time. The systems are out in a month, it's not like Sony can design something more capable of competing in the Wii's market. It'd be silly to fire people now, they're in this generation, for good or ill, with the PS3.

Kutaragi's job is most assuredly on the line here, his prints are all over the PS3 and if indeed it ends up the debauchle it's shaping up to be early on, not just he but the entire video game division will get the axe. But will it be as bad as all that? If the PS3 finds its killer app, if Sony can get the price down to a civilized level, it could still make a very good showing, I think. Their big handicap is that they have to rely on third parties for killer apps, but that's always been the case.

couchmonkey · « **Reply #701 on:** October 26, 2006, 06:35:05 AM »

Hey Jasonditz, yeah, you're probably right, there's really no point in firing anyone for now...but at the same time, one of Sony's most profitable businesses seems to be headed straight for disaster, it feels like they should be working on a back-up plan.

I think you're missing a handicap: the technology they've stuffed into PS3. I have a feeling that a lot of that cutting-edge technology is going to force Sony to stick to its price for a while - they're already supposedly losing money and to get the PS3 price to a civilized level, I'd say they need to cut it by at least $100. If they did so and then successfully sold 20 million next year (like PS2 in its first year), they'd lose $2 billion - on top of what they're losing already. Of course that high-end technology will come down in price, but how quickly? It's not like Blu-ray lasers or Cell Processors are in high demand.

WuTangTurtle · « **Reply #702 on:** October 26, 2006, 09:11:02 AM »

i dunno those pineapple controllers sound promising!

Ceric · « **Reply #703 on:** October 26, 2006, 10:33:25 AM »

Yeah, Fruit always did seem like a good interface.

King of Twitch · « **Reply #704 on:** October 26, 2006, 10:50:03 AM »

Latest good news is in - Battery recall: $429 million down the drain

Subtract another "...$366 million operating loss in its gaming division because of charges related to the preparation for the next-generation PlayStation 3 console..."

"...movie business also fared poorly, seeing its operating loss grow to 15.3 billion yen ($129 million)..."

"In the core electronics segment, Sony's operating profit for the three months ended Sept. 30, shrank 71 percent to 8 billion yen ($67 million) from 28 billion yen a year earlier."

Spak-Spang · « **Reply #705 on:** October 26, 2006, 10:58:05 AM »

MjRx: Sounds like Sony has been taking a beating.

Although that sounds bad...if the PS3 does well and software and accessories sell great then Sony will be able to pull through. If PS3 fails...then Sony will be hurting bad.

Lets hope for Sony that Spiderman 3 does great at the box office.

GoldenPhoenix · « **Reply #706 on:** October 26, 2006, 11:55:51 AM »

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Originally posted by: Spak-Spang
MjRx: Sounds like Sony has been taking a beating.

Although that sounds bad...if the PS3 does well and software and accessories sell great then Sony will be able to pull through. If PS3 fails...then Sony will be hurting bad.

Lets hope for Sony that Spiderman 3 does great at the box office.

Well I think the PS3 has to do better than well since they are starting out with such a huge loss. That is why I do not like the business behind taking huge losses on hardware, because it is so difficult to recoup those losses.

couchmonkey · « **Reply #707 on:** October 26, 2006, 12:08:05 PM »

I'm beginning to worry a bit that Sony and Microsoft will both be gone in five years and it'll be like being at a party with this creepy guy named Nintendo that you were flirting with because he's cute and you knew he wouldn't try anything with Microsoft and Sony around to protect you, but now they're leaving and Nintendo's staring at you and making you feel all uncomfortable.

GoldenPhoenix · « **Reply #708 on:** October 26, 2006, 12:12:17 PM »

Quote
Originally posted by: couchmonkey
I'm beginning to worry a bit that Sony and Microsoft will both be gone in five years and it'll be like being at a party with this creepy guy named Nintendo that you were flirting with because he's cute and you knew he wouldn't try anything with Microsoft and Sony around to protect you, but now they're leaving and Nintendo's staring at you and making you feel all uncomfortable.

Wow, just wow.

IceCold · « **Reply #709 on:** October 26, 2006, 12:17:29 PM »

I would kill to be in that situation

Spak-Spang · « **Reply #710 on:** October 26, 2006, 12:17:49 PM »

VGRevolution: I agree. In most cases it is very bad business to price yourself below cost...even if it is to meet or compete with market prices. (Which Sony isn't doing either with their price.)

However, it can be a viable strategy when you are trying to get your product into a household, that WILL lead you into buying complimentary products of your product. Selling a system for like a $20-$50 dollar loss is acceptable if you are going to make an additional $10 dollars on each accessory or game they buy for that product.

The thing with the Xbox 360 and PS3 is that they are losing like $100 or more on each unit, and that means that those additional $10 profits on accessories is going to take much longer to make up. And the reality is companies probably aren't making $10.00 profit on a single unit sold.

GoldenPhoenix · « **Reply #711 on:** October 26, 2006, 12:22:59 PM »

Quote
Originally posted by: Spak-Spang
VGRevolution: I agree. In most cases it is very bad business to price yourself below cost...even if it is to meet or compete with market prices. (Which Sony isn't doing either with their price.)

However, it can be a viable strategy when you are trying to get your product into a household, that WILL lead you into buying complimentary products of your product. Selling a system for like a $20-$50 dollar loss is acceptable if you are going to make an additional $10 dollars on each accessory or game they buy for that product.

The thing with the Xbox 360 and PS3 is that they are losing like $100 or more on each unit, and that means that those additional $10 profits on accessories is going to take much longer to make up. And the reality is companies probably aren't making $10.00 profit on a single unit sold.

I do agree, it is just that I think it is too much of a gamble to dump your stuff onto the market below cost (especially to the extent of PS3 and 360). BTW did MS ever get out of the red with Xbox?

Sir_Stabbalot · « **Reply #712 on:** October 26, 2006, 12:26:33 PM »

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Originally posted by: VGrevolution
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BTW did MS ever get out of the red with Xbox?

I don't think they did, but it doesn't matter. They're Microsoft. Bill Gates makes so much money, if he's walking to a meeting and sees a $20 bill on the ground and stops to pick it up, he loses money.

IceCold · « **Reply #713 on:** October 26, 2006, 12:30:45 PM »

I think that would be true if it were $1000 too..

Ceric · « **Reply #714 on:** October 26, 2006, 01:00:06 PM »

MS needs the 360 in people home to help for total end to end integration for Zune, Phone, Windows. Think about it. If you could take whats on your iPod or computer and easily play it through your entertainment system. Buy Music and video on the go, at your computer, or from your TV. It's all about a complete system. Full vertical integration. Apple is doing it and making good money. Microsoft went for the Horizontal approach and got burned so now there going to follow the vertical approach Apple took and leverage the head way they have already made into the living room that Apple doesn't have.

JonLeung · « **Reply #715 on:** October 26, 2006, 03:05:18 PM »

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Originally posted by: Sir_Stabbalot
Quote
Originally posted by: VGrevolution
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BTW did MS ever get out of the red with Xbox?

I don't think they did, but it doesn't matter. They're Microsoft. Bill Gates makes so much money, if he's walking to a meeting and sees a $20 bill on the ground and stops to pick it up, he loses money.

As often as I've heard that, I'm pretty sure he wouldn't be paid by the second. No one is. And I doubt he's being paid hourly, either. And even if he was paid for every moment he's there, if he stops to pick up money, he could very easily get that money back by messing around at work for a few seconds after work. And if the point is that he should spend every available moment of his life at work for as much money as he can get, the counterpoint is that he doesn't need more money and anyone with as much money as he has shouldn't feel obligated to keep going to work every day anyway.

Seriously, each day he should be, like, "today, half of my workday's wages will go toward paying off the debt of a small country", since that'd be a better use of his money than he could do. I hear he already does a lot of good work with his money, including research into AIDS...you'd think they'd have found a cure for AIDS by now, unless all the supercomputers working on the solution are actually Xbox 360s that keep failing.

jasonditz · « **Reply #716 on:** October 26, 2006, 03:43:22 PM »

I wouldn't count Microsoft out, their latest earnings release showed the Xbox division trimming its loss. With Sony showing signs of weakness it's hard to imagine Microsoft won't try to wait them out.

Galford · « **Reply #717 on:** October 26, 2006, 04:09:10 PM »

Since were beating on Sony right now here's an interesting debate about comments another Sony VP made.

http://www.avsforum.com/avs-vb/showthread.php?t=740504&page=1&pp=30
http://bluray.highdefdigest.com/feature_visitwithsony.html

If anyone here has been following the HD DVD vs Blu Ray debate this should make you laugh.

Flames_of_chaos · « **Reply #718 on:** October 26, 2006, 08:02:39 PM »

http://gamesarefun.com/news.php?newsid=7119 <--- The american PS3 commercial and boy does it suck.

Spak-Spang · « **Reply #719 on:** October 26, 2006, 08:22:09 PM »

"I got a great idea. Let's sell are console by scaring the piss out of potential buyers...and not showing any graphics or gameplay...even though that is supposedly our systems strongest point."

The marketing firm for the PS3 needs to be fired. The Japanese commercial and the American commercial suck. They tell nothing about the experience and actually make the buyer feel uncomfortable.

I am seriously disturbed by this commercial and will probably have nightmares tonight.

GoldenPhoenix · « **Reply #720 on:** October 26, 2006, 08:22:31 PM »

Quote
Originally posted by: Lord_die_seis
http://gamesarefun.com/news.php?newsid=7119 <--- The american PS3 commercial and boy does it suck.

That is one creepy commercial that tells me NOTHING about PS3 except that it will give me nightmares.

Arbok · « **Reply #721 on:** October 26, 2006, 08:42:36 PM »

Quote
Originally posted by: Lord_die_seis
http://gamesarefun.com/news.php?newsid=7119 <--- The american PS3 commercial and boy does it suck.

That commercail is awesome... for how bad it is. Really makes you happy to be rooting for the other side of this ad campaign for the PS3.

IceCold · « **Reply #722 on:** October 26, 2006, 09:03:12 PM »

What the hell is that? If anything, it will turn off more people than it will appeal to. Maybe that's Sony's plan, though..

Nick DiMola · « **Reply #723 on:** October 26, 2006, 09:07:59 PM »

... that is far and away the creepiest commercial I have ever seen. What the hell were they smoking?

WuTangTurtle · « **Reply #724 on:** October 26, 2006, 09:25:19 PM »

i dunno i thought this was pretty creepy, good, but creepy...............(NSFW) http://youtube.com/verify_age?next_url=/watch%3Fv%3DHEVCW8oMN5M

But yeah the PS3 commercial.....wow, just awful if Nintendo did something like that i would drive up to Redmond and bitch slap everyone in the offices.

News:

Author Topic: Sony getting hit Hard lately (Read 873160 times)