Could the PS3 be Sony's final console?

[Steven W]

Is the recent management re-shuffle an indication of Sony's intentions? Would Sony really throw in the towel to concentrate on software development?

Check out the Headline for more info.

[5lab]

basing this on 1 analysts prediction is a little strong.. given its one of sony's most profitable product lines, i strongly doubt this is the case - and while they're loosing $300 per unit - i believe a large chunk of this is the blueray bits that'll drop as it becomes more mainstream.. they're probably making about $50 per unit on ps2s at the moment (cmon, it can't cost much to knock a 300mhz cpu and 32 meg ram together, especially when you're shipping millions of units a year)..

[Steven W]

Sony's response:

"Following the launch of the PlayStation 3 just a few weeks ago, and witnessing the huge consumer demand for the product, I think it would be rather short-sighted for anyone to predict there might not be a next generation of PlayStation product."

[GeorgeTuk]

I think with the release of the console just last 3 weeks ago I think its a little early to talk about the future of their product line, maybe this is just talk to quell rumour of an 'upgraded' version like we had with the Wii.

I think the product line is bigger than just one man, and yes its fine saying about hardware over software but I would have thought that because companies want to get bigger they will try both.

Still I wouldn't be buying Sony software, MS proprietary wouldn't have anything on Sony formats!

[Fabula]

We have to wait and see. Sony are definately in difficulty, and will have to persuade a lot of people to buy sony stuff in order to overcome the losses they are incurring at the moment.
It would be years before they may be able to sell the console at a profit. Manufacturing costs will fall, but they will also need to cut sale costs per unit to remain competitive.

If they need to make back $300 per console, that may equate to 15 games per console (at $20 profit to sony per game) just to break even. And that is ignoring the development costs and running costs of support etc.

Sony are in a difficult position, and only time will tell whether they survive.

[GeorgeTuk]

We have to wait and see. Sony are definately in difficulty, and will have to persuade a lot of people to buy sony stuff in order to overcome the losses they are incurring at the moment.
It would be years before they may be able to sell the console at a profit. Manufacturing costs will fall, but they will also need to cut sale costs per unit to remain competitive.

If they need to make back $300 per console, that may equate to 15 games per console (at $20 profit to sony per game) just to break even. And that is ignoring the development costs and running costs of support etc.

Sony are in a difficult position, and only time will tell whether they survive.

Sony certainly have had some setback but a company like that does not hit the skids, you seem to forget they have many many other product lines (v. succesful Bravia TVs, Vaio PC range, digital cameras and camcorders) are still going well, and still have a pretty good reptation games wise in Japan and US.

And your calculations based on the fact that PS3 core components will remain at the same price, the production costs will drop significantly after about a year when there plentiful components.

Yes they have faltered a little in one area (well two if you count the batteries issue) but it is a flexible business with a new head honcho (Howard Marks) with a very good reputation, and thats forgetting the classic Japanese trait of never giving in.

This is not an attack on you Fabula but alot of people have said similar about Sony folding and frankly there is very little chance of that, if they do...i'll eat my keyboard!

[Dooms]

We were talking about this at work the other day... Sony arent as great as they used to be.

Once apon a time anything electronic you went sony without really thinking about it... now they just dont cut the mustard with many of their products

[Funkstar]

yeah, it's a shame. I really like Sony. Always liked their products, granted they weren't the absolute best you could get, but they were very solid and good quality.

Now they seem to be caught in a trap. Lower cost budget units these days are actually pretty good (LiteOn DVD Recorders for example) and a high end units are all made by very specialist companies that can justify being ultra high end. Sony can't really get into either end, so are stuck in the middle. And there is a lot of competition there too with Pioneer, Panasonic, Denon in the AV sector (as an example) and loads of others.

It's a shame really. Would be good if they could turn the company around again to become what they one were.

On the other hand, their phones are fantastic

[chuckskull]

Not a chance. If the PS3 does even half as well as the PS2 they'll be clamoring to release the next console.