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Thread: Should Sony exit hardware?

  1. #16

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    actualy Bolivar sony is still losing money on every PS3 made, but they have no plans of withdrawing from the console market as they're losses are now smaller than before and forcast to shrink more as tech gets cheaper... they're actualy losing $40 per console at the moment, hopefuly the possible PS3slim might put them back in the green...

  2. #17
    Bolivar's Avatar
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    Quote Originally Posted by Dreddz View Post
    While you are right about a lot of things Bolivar I still think your wrong about the profit Sony are making. They are taking a massive hit on every console they make, if they weren't then we would know about it. I'd like to see the sources you get some of your info from, cause I find it hard to believe that Sony are making $10 profit on every console sold.

    Ultimately I think Sony have made the best hardware and have the best games this generation but I'd rather see them turn into a publisher next gen instead of going down Microsofts and Nintendo's alley and only be interested in profit. That means cheap hardware, unnessesary charges and less games. Sony are a business and I know they would rather take that route then stick with what they are doing now.
    Well, here's a couple I could find:
    Sony successfully halves PS3 manufacturing costs | Gaming Industry | MCV
    Report: PS3 manufacturing costs drop 35% - News at GameSpot
    PS3 News: PS3 manufacturing costs almost halved - ComputerAndVideoGames.com
    PS3 ‘manufacturing’ costs within 10% of retail price | Gaming Industry | MCV

    Okay, so according to iSupply estimates they're still losing around $48 a console, but that's drastically down from the $850+ it took them to make each console to begin with.

    Secondly, I wouldn't be worried about Sony going in it "only for profit" next generation. Again, in a highly concentrated market like video game consoles, the objective isn't necessarily profit to begin with. You also can't forget that the PS3 served multiple contingency purposes for Sony as well, such as essentially sneaking in 10 million+ Blu Ray players into the market, ending support from film studios and retailers for HD-DVD. So not only does Playstation fulfill multiple functions aside from being a business division, it's already been profitable for quite some time now (despite the console itself still selling for less than it costs to make).

    But the point still remains, doing bad this generation wouldn't cause them to opt out next generation, because they've actually done very well already. Jack Tretton gave a good perspective on it recently, they have an immense business plan and it's already been paying off for them and if things go the way they do, it's going to pay off tremendously in the next few years. Every year's install base has the same incentive to buy as many games the next year (hell, even half a year) as they did the previous one because the technology's just growing that much.

  3. #18

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    yep... the goal of SONY is to provide an affordable alternative to a component home theater system, games is not first and foremost for them, it's the retail of several of their divisions rolled into one product... if you were to buy a complete component home theater system minus speakers on par with the PS3, i'm sure you would end up paying about 3x the ammount you would for the PS3... and you get an advanced game system to boot... they even market it as a home theater system...

  4. #19
    Posts Occur in Real Time edczxcvbnm's Avatar
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    I don't think Sony should exit. This generation they made a mistake with too high of a price point but they didn't royally smurf up with bad hardware for the 3rd generation in a row. But I think their controller holds them back still. Even though they have the more powerful hardware, I would rather get any third party game on the 360 because the controller is better in every way.

    Overall Sony is still doing fine but maybe they should stop making their own processors going forward and just outsource that from now on. The cell is good but they didn't do that on their own this time. I think they should just completely outsource it. It might help on costs in the future considering how competitive and complex it continues to become.

    I want to comment on the above about the home theater system. I am trying to think of what a PS3 even does besides play movie discs that makes it 1/3rd the cost of a component home theater system considering you can't hook up multiple input sources to it or route the audio to speakers ala a home theater system. Maybe I am missing something here and I just can't see it though.

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    Slothstronaut Recognized Member Slothy's Avatar
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    Quote Originally Posted by edczxcvbnm View Post
    I would rather get any third party game on the 360 because the controller is better in every way.
    Maybe slightly off topic, but even ignoring the subjectivity of size and shape of a controller, feel of buttons and analog sticks etc., the 360 controller is not better in every single way because it has the worst D-pad this generation hands down.

  6. #21

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    @ed
    because it plays back movies and music as well as plays games all in one convenient package, but unlike a home theater system you can not hook up a tape deck or record player but of course who uses those anymore... basicaly they're trying to take over the home theater market in the same way PCs are, both Sony and Microsoft are trying this by offering cheaper alternatives to a full blown space consuming tower... just add speakers and a highdef monitor/TV and you're good to go...
    now buying a full tower costs the base price plus taxes for each individual piece of the tower then of course a custom stand/cabinet to protect and house the components safely and securely, and maybe two high jule surge protectors to cover all of the components, and it's well known that the PS3 has the best yet cheapest BD player on the market due to it being installed already in a full package product and SONY takes a financial hit for every one they sell... does PS3 have netradio like PSP if so it truly is the full package cause there's your tuner, who listens to local radio outside of their car anyway or even in it for that matter, personaly i just plug my iPod into my car radio, i don't remember the last time i actualy listened to local radio...
    Last edited by Elly; 07-09-2009 at 03:04 PM.

  7. #22
    Bolivar's Avatar
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    Quote Originally Posted by Elly View Post
    @ed
    because it plays back movies and music as well as plays games all in one convenient package, but unlike a home theater system you can not hook up a tape deck or record player but of course who uses those anymore... basicaly they're trying to take over the home theater market in the same way PCs are, both Sony and Microsoft are trying this by offering cheaper alternatives to a full blown space consuming tower... just add speakers and a highdef monitor/TV and you're good to go...
    now buying a full tower costs the base price plus taxes for each individual piece of the tower then of course a custom stand/cabinet to protect and house the components safely and securely, and maybe two high jule surge protectors to cover all of the components, and it's well known that the PS3 has the best yet cheapest BD player on the market due to it being installed already in a full package product and SONY takes a financial hit for every one they sell... does PS3 have netradio like PSP if so it truly is the full package cause there's your tuner, who listens to local radio outside of their car anyway or even in it for that matter, personaly i just plug my iPod into my car radio, i don't remember the last time i actualy listened to local radio...
    Yeah, it has an insane amount of video codecs so nearly anything you'd want to watch from your computer streaming, or on usb, or saved to hard drive can play, out the box. Plus the originals had all kinds of media slots to get that content on there.

    Not to mention it has optical audio out, as well as HDMI in every system (since day 1).

    I think Elly may have forgot to mention that a big reason why it's one of the best blu ray players on the market is not only is it internet connected for BD Live, but it also updates through firmware, making it a future-proof blu ray player.

    With an internet-browser, it's also a webTV setup, and some sites are getting easier to use even with a controller, with two ways to get you connected on that internet (wired & wireless), with a wi-fi adapter that's good enough to handle even the most demanding games on an already powerful system.

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