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$H3LD0N Y3UNG™ Is Sony Going Bankrupt? - $H3LD0N Y3UNG™ im just worried i hear alot of ppl talking about thatm, there massive marketing campaing, infact i see one right now in Y!A some HDNA Camera, the almos everyhour It only Does Everything gotta love those especcially the Uncharte4d Girlfriend one lol. Plus sony still losses money on the ps3 slim, im worried or does sony know what ther doing? thanks.
Best Answer: Calculative risk taking is a part and parcel of this industry.... PS3 is just 3 years into it's life cycle. Even if you see the dynamics of PS2, then too you find that it was only after 3 years than Sony started to earn profits off the PS2. Granted that PS2 came out at 299$ and the margin of loss was small even during initial years, but still in this industry when you look at a 10 year life cycle, you have to start off by incurring some losses initially.... It's not as if only Sony is in deep waters.. Just look at M$, they suffered a 4 billion loss last gen and are still 3 billion dollars down this gen (mainly due to the RROD fiasco)... That adds up to nearly 7 billion in losses. And don't start thinking "Oh M$ has a lot of money" cause in reality, both the gaming divisions have equal budgets... Sony might have lost more than 4 billion this gen, but pretty much covered up by PS1 earning more than 3 billion and PS2 earning more than 4 billion.. So the gaming division is still profiting. Besides, even if Sony sells PS3 at a loss, then too it earns profits of every copy of fist party game sold.... Look at it this way.. Every copy of an exclusive first party game sold yields Sony more than 30$ (half goes to the devs).... Plus add to the fact that Sony gets royalties from 3rd party devs and from HOME.... That is why next year is gonna be huge for Sony as 2 of their main selling first party games land, first being GT5 (this might even sell more than 8-9 million in lifetime if it follows tradition) and God Of War 3.... Plus finally next year Sony will be able to earn profits of PS3 (as said by Sony chief himself). As said by Kaz (Sony chief) himself... "We are selling PS3s at a loss, but overall earning profits from the gaming division"... That pretty much sums up what to expect from next year.. Even if Sony sells 30 million by this year, if it stays for 10 years, I am pretty sure 100 million PS3s will sell.. So that would be 70 million PS3's sold at profit+First party funds+Ads.... Granted it's hard to even 4 billion, Sony will at least break even by the gens end... Besides as I said, it's a long term investment.. Sony invested more than 1 billion just to fund the R & D for the Cell BBE... Now the only thing Sony has to so with PS4 is to just add in a few cores to the Cell and make it more powerful. Investing now means PS4 will be cheaper whenever it comes out and that could be the real bonus IMO. And finally this is Sony... 4 billion is peanuts for such a hugh multinational company.. In times of recession, losses are always seen. No other company apart from Apple has shown a growth or profit overall... Sony is no different and nor is M$.... Don't worry Sony ain't going anywhere. - XYZABC
no there doing actually better than microsoft right now thx to the slim but nintendo is doing horrible. - shiznitsles
Are you kidding? Sony has billions and billions of dollars in cash reserves alone. They are the founding fathers of several physical media formats, some successful and others unsuccessful. Yes, they are still taking a loss on the PS3 console, but its hardly a loss serious enough to make them go bankrupt. If that were the case, there would be no PS3 in the market. Besides, they make their money on all the software anyway. Sony has always known what they were doing. They were probably making boomboxes before you were born. - sickcallaway (Sarcastic Joker)
Its practically impossible for Sony to go bankcrupt. Maybe their Video Game division isn't doing as great as it did before, but there's still Sony electronics, Sony pictures, Sony Music label, and plus the PS3 is not where Sony wanted it to be by this time around(most likely compared to the success of the PS2), they say the consoles gives them a lost. Right now sony said manufacturing cost drop 70% which should put it at around $250 for the 120GB and $270 for the 250GB, sony sells PS3's at $299 and $349, I see no loss there. Maybe the loss they mean is that its not as profitable as they want it to be, but it still makes money, not to mention the PS Store, and the games for it. Trust me Sony is doing fine right now. - tyrone j
Do you have any idea how many units were sold in japan alone?? sony noes what its doing. i dont no where u here dis story at - My Time Is Now

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