And now, we know why he said that -__-

It was always a risky strategy and they've probably just thrown the dice one time too many.

I'd assume then that they'll want to instigate the next gen a little earlier to try and recoup some of their losses which is obviously a bad thing for everyone.

Hardware never makes money its the software that generates the profit.

Starting another cycle will deepen their debt rather than alleviate, as the h/w is always sold at a loss to begin with not to mention R&D costs on the new box. Their best hope is to cost reduce as quickly as possible and/or create a separate *very cheap* SKU that they can sell at better break even.

Clueless ****s.

@ 3.

Before you make ill-judged fanboy comments, please consider the type of people who read this website and post comments.

They are industry professionals. They know exactly how the industry works. You just made a complete and utter fool of yourself, no wonder you remained anonymous.

Anyway, it's not good making a $3.3 billion dollar loss this far into the lifecycle. Sony's software sales are still far behind those of Microsoft's in terms of overall sales (not just single titles).

The simple fact is, the console – at most – should make be making losses no more than a couple of tens of millions at this point, if not making a profit.

Consoles should be making a profit after being out two years. The 360 does, as does the Wii (although Nintendo are different as they don't sell their hardware at a loss), so for Sony to still be making a loss is worrying.

My big worry if I was in SCE is how much longer are investors going to accept these losses before they demand some form of sign of Sony's determination not to repeat this mistake. They won't care about petty rivalries. They care about one thing. Making money. If the PlayStation business isn't doing that, and with Microsoft looking to keep up the pressure on Sony's bottom line by keeping ahead of the pricing curve and Nintendo sweeping up Sony's cash cow – the casual gamer – it might not be long before those very investors start asking some very serious questions about the viability of the business.

Knowing what Sony are like there won't be a PS4, they'll call it the PS5 and say it's that powerfull it's skipped a geration!

lmao you're probably right.

Err, Nintendo always make money on hardware, they've probably made the most money over the last 5-10 years as they've always been in profit on the hardware.
Also ms are at least breaking even on the 360 HW now and unless they've been lying their games 360 and zune division is making a profit - lying to shareholders would be a pretty serious accusation.

This is what was smart about ms going early, they robbed Sony of 2-3 years of major profits from the ps2, the years it should have been making the profits to counter the losses of the next hardware launch. By forcing them to dive into the ps3 way too early and lose money, face and goodwill they took a hammer to their veneer of invincibility and have made it very hard for them to operate as they did in the past.

I think their biggest mistake was their arrogant nature at the start. Unlike nintendo who were way behind last gen and have gone from strength to strength this time round especialy with their all around nice guy image they have created. MS have done very well from nothing with xbox and now 360 however they also suffer from a bit to much arroance. to them both I say. The higher you are the greater you fall. But ther is nothing stopping either MS staying up the top or sony climbing back.

Sony have made many promises over the years on what there hardware was capable of, and crippled other consoles ie dreamcast on here say. i think its fitting that they got a right good kick up the bum this time around. Maybe if the do enter the next generation of consoles in the future they wont treat the users as everything sony is golden.

Sony was the leader in format changes. When it went from cartridge to CD Sony was at the forefront. PS2 introduced Dvd to the Gaming community. This attracted hardware sales which in turn attracted game developers into making exclusive titles for ps2. Enter Xbox 360. With their Xbox live service poised to take the next step in gaming evolutuion the 360 came out a crucial 1 yr ahead of ps3 to establish Dominance. Sony failed to address this evolution process. PSN is horrible. Xbox live is the future of gaming.

What it means is quite simple, Sony will neither have the will inclination or fiscal fortitude to replace the ps3 for at least another 8 or 9 years. Microsoft will unveil a replacement to the 360 in two years time. Sony will have to basically opt out of an entire generation of hardware

What it means is quite simple, Sony will neither have the will inclination or fiscal fortitude to replace the ps3 for at least another 8 or 9 years. Microsoft will unveil a replacement to the 360 in two years time. Sony will have to basically opt out of an entire generation of hardware

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