PS3 to kill Sony?

[Susurrus]

It's a long read, but it makes sense.

http://www.electricsistahood.com/rev...-go-broke.html

[DakAttack]

Re: PS3 to kill Sony?

They seem fine to me, businesses take these risks all the time. The only difference is this is Sony, and those other businesses are nameless and forget-about-able.

I wish SE would show a little loyalty. They're a big hitter for any console they develope for, but it's really hard to enjoy their games when they're spread over a large spectrum that will require a lot of money to travel. I always thought they did well with Sony because they were the most neutral. Nintendo just can't let their old characters die without squeezing more money out of them, and Microsoft is putting big meaning behind meaningless gimicks, like Xbox Live.

[Shadowneko]

Re: PS3 to kill Sony?

who knows? maybe it'll just be sony's N64...ast for me I can't afford $600 for a game console so I'm just buying a Wii...

[Jarre]

Re: PS3 to kill Sony?

The advantage of the PS3 will be its blu ray, when released it will be the cheapest blu ray player ont eh market, which will be an advantage as people may not just buy the console for playign games on.

[Jei]

Re: PS3 to kill Sony?

Sounds like S-E wants us to buy many consoles....
"we'll make games for everything. Buy them all if you wanna plau our game"

[Raydeus]

Re: PS3 to kill Sony?

Sounds like S-E wants us to buy many consoles....
"we'll make games for everything. Buy them all if you wanna plau our game"

That's the part where I say:

Warui, PS3 onry.

[kuu]

Re: PS3 to kill Sony?

Lots of BS and stock market manipulating words.

Easy to fool the masses.

The future is hardly clear, and like any games of poker, cards are not dealt.

Sony eletronics hit down last yr but up this year. Same with entertainment division. Sure there was a battery recall, but shit happens, and through the internal workings they can probably shift some blame and money around from the people who both brought the battery and make them(Sony makes them but not the components of battery)

So Sony World wide is the big moniliths like it always has been.

Now to PS3. It's a very ambisious project.
1:Next gen gaming = continue the PS brand and money train
2: Entertainment = Sell their movies, music, online, etc
3: Electronics = Sell HDTVs, Blu-ray players, Cell chip camcorders, players, etc,etc,etc
4: licensing = Royality both from electonics and entertainment.
5: Economy of scale!!

5 is a big big big one. Cell, Blu-ray, Bluray format, Bluetooth, bacsially everything inside a PS3 is subject to economics of scale.

They are going to make/buy these components anyway, so they have to tool the factories, and buy in bulk.

This means the start-up/sunk/tools cost is for all intense and purposes is budgeted no matter if the PS3 wins,flops,or medicore.

That couple of billion sunk in PS3. It was sunk anyway. On a smaller scale, but nevertheless, already intended. So the PS3 isn't really that big of a lost in the greater scheme of things.

Illustration:
Basically it's like buying a computer on the excuse for school work, but to play games. Sure you're buying a more powerful PC for games, but you needed a computer anyway.

Sure everything can screw up, but it's like all companies, plans within plans within plans. And that's how you make money folks.

A lession you learn in accounting 101. There is no such thing as risk in business, only calculated risk. Nothing is done without thought.

[Omniblast]

Re: PS3 to kill Sony?

I'm planning on buying a Wii & a PS3. It doesn't cost that much. Let's see here...
$300 for Wii + Zelda. $725 for PS3 with a game. Not too bad. Maybe I won't buy it this year and wait for generation 2. I've been taking too many vacations this year.

[Raydeus]

Re: PS3 to kill Sony?

5 is a big big big one. Cell, Blu-ray, Bluray format, Bluetooth, bacsially everything inside a PS3 is subject to economics of scale.

They are going to make/buy these components anyway, so they have to tool the factories, and buy in bulk.

This means the start-up/sunk/tools cost is for all intense and purposes is budgeted no matter if the PS3 wins,flops,or medicore.

That couple of billion sunk in PS3. It was sunk anyway. On a smaller scale, but nevertheless, already intended. So the PS3 isn't really that big of a lost in the greater scheme of things.

Also, Sony stated from day one that Cell technology was going to be included in many other Sony products and not only the PS3.

So while they will take a hit on PS3 sales (hardware) the infrastructure is already there so production costs for Cell technology will only go down from here (same with Blu-ray and others), the PS3 is just the first step in all the plans Sony has for Cell.

(It's like crafting at a loss in XI, you lose some gil from materials but you earn skill, which will become profit in the long run )

I can't see Sony failing with Cell technology unless someone invents a processor twice as powerful with half the production costs really. But we wont see how this turns out until at least 4 years from now.