What a bunch of idiots. Microsoft isn't as big a company as half the internet thinks it is, and that "analysis" you quoted ignores the fact that all of the first party money in this industry is made in software licensing, except for Nintendo's.
Despite having zero evidence of the article's/thread's title -- beyond Sony being in deep shit with the costs of the PS3 -- this is still an amusing article:
http://www.bonafidereviews.com/article.php?id=148
I like this part:
PS3 production pricing at this point has been laid out to be anywhere from $850 - $956 per unit, meaning there will be a loss on each machine of approx $250 - $350 per console sold. If one million consoles sell in the first day of availability Sony will have wiped there entire fiscal gain for all of 2005 in under 24 hours.
What a bunch of idiots. Microsoft isn't as big a company as half the internet thinks it is, and that "analysis" you quoted ignores the fact that all of the first party money in this industry is made in software licensing, except for Nintendo's.
I hope everyone stopped reading the article right there.Sony has held the all mighty hardware thrown
Oh look he changed it, cute.
lol. Yeah, there are plenty of spelling mistakes. Hey, I did say the article was amusing.
No, it doesn't ignore that fact at all. Sony made like $580 million in 2005. He's just saying that could be soaked up in losses in the first 24 hours after launch at the projected pricing structure.Originally Posted by Yoshi
No, it couldn't, because they will be making money back with every game and Blu Ray movie sold during that 24 hour period too.Originally Posted by Compass
I dunno dude.Originally Posted by Yoshi
They're pretty fucking big.
MS Market Cap: 278b
Sony Market Cap: 47b
Wal-Mart: 191b
Exxon Mobil: 369b
He ignores one compelling piece of evidence - that Sony isn't the powerhouse they once were and are struggling mightily. Except for their games division, though. But yea.So this article is just a guy with no evidence or real knowledge of this material spouting off?
Time paradox!
Last edited by diffusionx; 08 Apr 2006 at 01:58 PM.
So this article is just a guy with no evidence or real knowledge of this material spouting off? It's nice to see the content match the layout and design of the site.
Last edited by Drewbacca; 08 Apr 2006 at 01:57 PM.
Originally Posted by rezo
Yeah, it depends which metric you look at I suppose. There's no arguing with the market cap view.Originally Posted by diffusionx
Well, of course they'll be making money in other areas. That goes without saying. But if they only made $580 million in 2005, without taking huge losses on hardware... it doesn't bode well.Originally Posted by Yoshi
If Sony only made $580 million in profit, as a corporation, in 2005, they are in deep shit whether they take a loss on the PS3 or not.
If we look at the technology companies within the Fortune 500, you get a different view (by revenue):
10. IBM ($91B)
11. HP ($86B)
25. Dell ($55B)
48. MS ($39B)
49. Intel ($38B)
MS isn't so big when compared to some of its competitors, is more where I was headed. I have no idea what Sony's annual revenue is.
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