Sony Computer Entertainment 2011 Fiscal Report : Deficit Over 94.7 Billion Yen

Love my PS3 and Vita :( All things being equal on the hardware end, MS is a much safer bet for next gen. I do not even own a 360 yet I already feel the next round of consoles is going to much more balanced in favor of MS and Nintendo. I wonder if Sony will just throw in the towel -- three consoles is a bit much, I hate how all the exclusives are spread out across so many platforms. I'd be much happier if we just had two consoles (that, and my constant favorite, my PC)
 
iamshadowlark said:
I have no doubt that Sony overall can bleed money but this is specifically SCE. Look at the FY2006 report, they lost 1.9 billion and that was when PS3 was lossing like 300/400 a unit. Doesn't really make sense.
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I'm sure it's been mentioned in the last 7 pages, but I imagine Vita bombing could be bleeding them a lot?

I also doubt Ps3 hardware is particularly profitable, probably a lot closer to break even than GAF thinks in light of these numbers.

I dont understand though, I thought gaming results were no longer broken out, but combined in network products and services. Whats the purpose of that if there's apparently a separate video game division called SCE that results are delivered for being discussed here? what am i missing?
 
Im ready to eventually hear Sony go under. I managed to get through SEGA leaving console business so Im pretty cold to the whole industry.
 
I'm not sure what you guys expected. Isn't it the Sony/PS3 fans on this forum who always cry that they want the most powerful console and ambitious games by Sony's studios? Guess what, it comes with a price.
 
Glass Rebel said:
I'm not sure what you guys expected. Isn't it the Sony/PS3 fans on this forum who always cry that they want the most powerful console and ambitious games by Sony's studios? Guess what, it comes with a price.
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I believe it has Iess to do with PS3 and more at spending for the future and PSV.
 
specialguy said:
I'm sure it's been mentioned in the last 7 pages, but I imagine Vita bombing could be bleeding them a lot?

I also doubt Ps3 hardware is particularly profitable, probably a lot closer to break even than GAF thinks in light of these numbers.

I dont understand though, I thought gaming results were no longer broken out, but combined in network products and services. Whats the purpose of that if there's apparently a separate video game division called SCE that results are delivered for being discussed here? what am i missing?
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Vita is anywhere for profitable to a very minor loss and they arent producing alot of Vitas due to the sales. PS3 has been profitable for a while now. Like a long while. Its not the current products.

Think about it, while PS2 was selling gangbusters SCE managed to lose 1.9 bill in a FY, with a $300+ loss leader. This is more than half that with no comparable loss leaders. Something is hidden within.
 
CepPyBoy said:
I believe it has Iess to do with PS3 and more at spending for the future and PSV.
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I know, but every time someone suggests that Sony might not sell their next console with a $300 loss the PS3 people throw fits: "The PS3 is the best console I've ever owned, I don't mind paying $599 again!"

It's gonna be fun when next gen arrives and reality catches up with some posters.
 
AAK said:
Does anyone know how Sega's earnings were looking before they went 3rd party? Was it worse than this?
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Only 2.x times Nintendo deficiti in 2011 and somy is a company 10 times bigger.
Also its problems comes from other divisions, not the ps
 
Didnt Sony as a whole paid insane amounts of money during 2012 for future taxes [3-4 years]?

RND for Vita and PS4 also was not cheap. Vita uses more normal tech, but even that had to be customized a little. PS4 on the other hand can use either slightly customized current AMD hardware, or they can spend insane ammounts of money pushing for stacked memory.
 
Glass Rebel said:
I know, but every time someone suggests that Sony might not sell their next console with a $300 loss the PS3 people throw fits: "The PS3 is the best console I've ever owned, I don't mind paying $599 again!"

It's gonna be fun when next gen arrives and reality catches up with some posters.
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Yeah, I'm highly skeptical that Sony's gonna pull a PS3 with the PS4 and make some bleeding edge megarig then sell it for cheap (as far as the cost of making it goes) and take titanic losses on each machine.

I expect a more conservative route that ends up being powerful (as consoles go, PC will still laugh at it) due to the tech becoming affordable at the time it's released rather than some golden god of gaming machines that boasts graphics similar to high end PC gaming. It'll still be more powerful than what we see on consoles now and might even be the most powerful of the next gen provided MS doesn't pull some stuff out with Durango, but I honestly think that there are people out there expecting PC level performance (as in, high end PCs when the PS4 is released, not PCs from now) from Sony and they aren't gonna get that.
 
lefantome said:
Only 2.x times Nintendo deficiti in 2011 and somy is a company 10 times bigger.
Also its problems comes from other divisions, not the ps
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Except it's not exactly the first year they are bleeding money.
That was the case for Nintendo.

Their model is broken, Kaz himself said it.
Nintendo is fine. At least for now.
 
Barkley's Justice said:
I was trying to think what Sony brought to gaming with PS3...

Bluray
Chargable controllers

...

.....

HOME, I guess...

Help me out. Games excluded. OS, services and hardware only.

I was trying to think what a PS4 would be? Aside from MOAR PoWERZ. And, you know, it was kind of hard to see much innovation by way of PS3 imho. And I look at Sony's tablet attempts, Xperia, the PlayStation Suite, Vita OS, PSN, SEN or whatever it's called tomorrow...It's pretty clear they don't know what they're doing. You have to hope their 1st parties are advising them. I suspect prior to Kaz, Japan likely wouldnt have given two shits what Naughty Dog thought about how to turn PS4 into a winner. I hope in a Kaz World, the opposite rings truer.
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1. Developer Relations, new IPs


The biggest thing they've done this generation is how they've treated 2nd and 3rd party developers compared to the competition. Especially the indy devs(Unfinished Swan, Journey, Flow, ect) Big games too. You would never see something like Heavy Rain or Beyond on 360. They are much more open with PSN as well. Look at Dust 514.

They've also created the most new IPs. Yes some haven't been as successful as one would hope, but that's not the point.

Tech sharing(MLAA, the tools that the ICE team built, ect).

This is why Sony has been getting the image lately that there "more for the gamer." Is it because there in last place/tied for 2nd(going by ww #'s)? I don't think so. Sony outlined this strategy from the beginning back in 2006. I remember Phil Harrison talking about how they were going to be focusing all there money into 1st and 2nd party studios, and were not gonna go into a bidding war with MS to secure exclusives like GTA4.

IMO this is bigger and more important than some motion controller, hardware, or an online service. Its frustrating that Sony doesn't get more credit for its relationships with devs.


btw this is my first post on gaf after being a lurker for 6years... go easy on me :)
 
It was announced Andrew House was promoted to replace Kaz in running SCE awhile ago, so Kaz stepping down shouldn't be shocking.
 
i really can't even begin to believe that sony is going to bow out of the industry any time soon. they might have to end their handheld line, but they've worked too hard to get to where they wanted to be with the ps4. sony's in bad shape, but i think they're just too big to fail.

Sintoid said:
Kazuo Hirai Steps Down As Sony Computer Entertainment Chairman
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probably not necessary for him to be having that job as well as his main one though.
 
Sintoid said:
Kazuo Hirai Steps Down As Sony Computer Entertainment Chairman
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EDIT i read wrong people expect that to happen .

AniHawk said:
i really can't even begin to believe that sony is going to bow out of the industry any time soon. they might have to end their handheld line, but they've worked too hard to get to where they wanted to be with the ps4. sony's in bad shape, but i think they're just too big to fail.
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Truth is i think Sony should have done with handhelds with psp.
Put everything into PS4 instead , vita is a nice piece of hardware but things change so much since psp came out .
 
onQ123 said:
I'm guessing it's true that the PS4 chip is a 1 billion dollar investment.



"The Cell Broadband Engine that powered the PS3 cost $400m to develop; the main SoC for the incoming console is likely to be a 3D stack incorporating thru-silicon-via technology and could be the first $1bn hardware design project."
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this is scary - wonder if they're going all-in on the design? Maybe they think that SoC can become the core of a bunch of other products down the line, like smart TVs etc. Although they said something similar about CELL and that never worked out.
 
Opus Angelorum said:
Not really, but it underlines the severity of the problems SCE are experiencing.
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How so? Wasn't this to be expected after he got his promotion? How can you be the President and CEO of Sony as a whole AND CEO of SCE? That's a bit much and probably impossible for a single person. Seems to me that the wording, "he stepped down" is misused or misinterpreted. It implies that its because of poor performance on his part, but rather quite the opposite cause its due to a promotion.
 
mrklaw said:
this is scary - wonder if they're going all-in on the design? Maybe they think that SoC can become the core of a bunch of other products down the line, like smart TVs etc. Although they said something similar about CELL and that never worked out.
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It did, they are using them in other Sony products, but not on the large scale. They are currently preparing CELL chips for wide array of medical equipment [excellent idea].
 
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