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DFC: Sony won’t recoup PS3 losses

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DFC: Sony won’t recoup PS3 losses

Analyst claims that Sony has the most to lose this generation, and faces 27% market share drop

Market analyst DFC Intelligence has delivered a scathing verdict on Sony’s prospects this generation, claiming that the high development and manufacturing costs of PS3 make it unlikely that the machine will ever become profitable.

Gamesutra quotes DFC’s Wanda Meloni as stating that “Sony has the most to lose with this current generation”. She added that Sony’s production losses per console means that it will probably not break even throughout its lifespan.

Meloni also claimed that whilst Sony claimed a 67 per cent market share during the height of the PS2 era, it will do well to maintain a 40 per cent share this generation.

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Yeah, ok there Miss. Analyst.

posted by Mog Oct 30, 2008 at 4:46 pm
1
Mog

I think that analyst needs to find a new career choice, at the rate the manufacturing costs of the ps3 are reducing, crossed with the increasing number of hardware and software sales I would immagine that by the arrival 2010 the console will cost more than its manufacturing costs and by 2012/13 it will have recovered any losses it made from launch until the date it became a profit making console, also I would immagine by 2010 developers will be able to start really exploiting the systems abilities, maybe not to 100% but definately a high improvement on the current. Once the systems power is truly exploited it will be firmly seated in the gaming industry hotseat until the next TRUE generation of gaming consoles is launched.

Mog
Www.MogCast.coM

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Re: Yeah, ok there Miss. Analyst.

posted by AH Oct 30, 2008 at 4:56 pm
2
AH

Mog you sound like its your company like you have billions of pounds of shares in Sony or something. Just face the facts Sony are currently in a black hole and are screwed unless a miracle happens in the economy or they find a Genie and make a wish to be like the Nintendo Wii or something matee!!

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Re: Re: Yeah, ok there Miss. Analyst.

posted by Subliminal Oct 30, 2008 at 5:04 pm
3
Subliminal

@2 agreed.

Th PS3 is without doubt a formidable console but at present with the cost v all other consoles, continuing problems on PSN (MGS, 2.40, LBP etc) they are not winning any new fans.

I think My PS3 is awesome but in all honestly it get used more as a blueray player than a console and at the rate blueray players are coming down in price soon that won;t be its selling point either.

Who's not to say Sony have an Ace up thier sleve but if they havn;t its dark days for Sony as a whole.........

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Re: Re: Re: Yeah, ok there Miss. Analyst.

posted by Noob Oct 31, 2008 at 8:01 am
4
Noob

The report sounds about right. Sony themselves have said similar about their predicted profits from PS3.
With three players in the market now, and one "running away with it". Margins are going to be smaller. Also when Sony is still losing money on every console sold, and the yen is so strong and looks likely to stay that way for the forseable future (2- 5 years). Then I think DFC is about right. I hope I am proved wrong.

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oh well

posted by andy Oct 31, 2008 at 8:02 am
5
andy

oh well poor sony but 40% is still a huge margin that over 3rd! considering the wii take up most of the rest so what does that leave MS

but i agree the console is losing money and sony made a console way to much better than anyone else and priced that out of the market but hey if you want the better console and some of the better games get it. to be honest having all the consoles this gen give u a good oversight of what microsoft really has to offer and its not really that much. fable 2 and gears really thats about it.

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Re: oh well

posted by AH Oct 31, 2008 at 8:40 am
6
AH

Come on Andy to say the Xbox360 has little to offer is complete stupidity, its not there fault completely that Sony and your beloved PS3 are in the black hole. Tell me if the 360 had nothing to offer why would nearly every traditional Playstation exclusive be available to play on the 360? Lets just face the facts Sony have been living off there brand and dropped the ball, they are no longer the best console in any market Segment anymore, they have got wee'd on by a console called none other than the Wii. 360 has become what the PS2 was and what everyone hoped the PS3 would be which is the real gamers console by having the best range of games out of any console on the market currently.

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Re: Re: oh well

posted by Oracle Oct 31, 2008 at 9:55 am
7
Oracle

Yes, and Microsoft has also demonstrated zero innovation by stealing exclusives and other people's ideas, and not to mention one of the most shockingly unreliable pieces of consumer electronics of the modern age, and I've still seen no evidence to demonstrate RROFD has been completley eradicated and machines continue to falter. They'll be handing out replacements long into the launch of the 360's successor!

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Re: Re: Re: oh well

posted by woodins Oct 31, 2008 at 11:07 am
8
woodins

LOL love how anything posted here predictably degenerates into a subtle fanboy rant as to want console is better. Cant help but feel a bit sorry for Sony though. I dont own one, but think the PS3 is a brilliant machine. Just been mis-marketed at the start. I do think that they would be in a better position if the credit-crunch hadn't snuck up on everyone. They do need to drop the price of this console by about 50 quid though. Then it becomes a really viable option. Think about it, reasonable sized HD, wireless thrown in, and a free (but sometimes rubbish) online games service. Its just most consumers, especially now, cant see past that initial 300 quid price tag. That and the fact in-house exclusives take an age to develop (wheres gran Turismo 5? been what, 5yrs in development now?). I do feel sorry for the early adopters, they were promised so much, and still so far Sony have failed to deliver. I am looking forward to what 2009 brings to this console though. By the time the slimline comes out, I will probably buy one, there will be a decent enough catalogue of games by then.

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Re: Re: Re: oh well

posted by MrJolly Oct 31, 2008 at 11:49 am
9

Stealing exclusives? Stealing? The owner of the exclusive made a decision to put the title onto more platforms that were already established and are clearly here to stay.

As for stealing other's ideas show me any games company thats come up with something no ones REALLY done before rather than being influenced or repackaging something and making a much later sucess of it than those who went before?

All games and platforms are influenced by those who came before, neither Nintendo, Microsoft or Sony invented video games, online gaming, polygons, Cd-rom, casual games, or just about anything else that they have received huge amounts of praise over, it's almost all been done before, it's just done now more profitably and with a license to ensure people take notice.

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