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February 19, 2000

Analysts predict Sony takes loss on PS2
Posted by @ 11:10 AM, EST
Merrill Lynch financial analyst recently estimated that Sony will lose approximately $180 (or 20,000 yen) for every PlayStation 2 unit sold!
Analysts are also predicting that it will take at least a year’s worth of highly successful software sales for Sony just to break even.
Thanks to Gamefan for the info.







Name:BuzzBuzz
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Comment: Whoever wrote that message trying to be me cant type, and i didnt say that alot of ppl didnt own psx's and i wasnt dissin the psx2, i was just trying to say...hell, i dont know, just forget the whole damn thing since it obviously didnt come out on the screen the way i was thinking it...




Name:Kituka
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Comment: Your brother pissed in it? Damn, that would've pissed me off!!!!




Name:BuzzBuzz
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Comment: I'm sorry guys, I must've been smoking crack or something. Playstation rocks, I didn't mean to diss PSX2. I know, I know, I just make stuff up, but can you blame me for trying. My Playstation only broke because my 4 year old brother took a piss in it. I'm sorry for being angry at the world and taking it out by making asinyne comments on this bored. I'm dumb and I know it.




Name:Kituka
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Comment: You're damn right Luke!!! That's exactly why I'll be getting a PS2- the original PS was so much fun and gave me many of my fondest gaming memories.




Name:Luke
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Comment: A big thank to Kituka and Tim Sutton from me! Especially Kituka impressed me by being as dissapointed as i am about "Sonic Adventure" as well as reminding that "Soul Calibur" was made by namco. Just imagine... namco should know as much as sega itself does about the DC. But still, they are beating sega in making great games. But back to SONY... Even if the PS2 is shit (and i�m sure it isn�t) i would buy it just because I had so much fun with my PS (and yes I do use it for 3 years now without any problem...). But I can�t imagine that SONY would make loss by selling the PS2. Why should they do it then?! I should�nt care about that, i just will go and get one of those infernal fast machines, don�t you think so?




Name:SimmerinTim
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Comment: I work in a computer store and get a fine publication called Game Week. This magazine is a market review for all things videogame related. First off, Kituka is very accurate with his estimate of 80 million, it's just under that. Also, Sony controls over 70 percent of the videogame market. That leaves the last 30 to divide under nintendo, sega, neo geo, etc. Playstation has sold so many units because they have more quality games than all other systems combined. Their library is substationaly larger than that of Nintendo because developers A)favor the lesser difficulty of producing games for Playstation B)it is cheaper to distribute CDs than EPROM cartridges and C)Sony takes less royalties than Nintendo. If you look at the type of games on N64, they're mostly geared towards a younger audience, with titles like Bond and Resident Evil to capture an adults eye. The lesser cost of Playstation titles is also attractive to the consumer, with a large selection of great titles for 20. Also, most new releases being sold at less than $45 from day one. So, don't try and pass the Playstation off as a half rate system, when it is King of the Mountain right now. They're the only company to ever knock Nintendo off the top because they have game developers that produce superior games. At least give Sony the credit they're do, your unresearched speculations do no one any good BuzzBuzz. Do your homework next time, that way people don't have to make you look like a moron.

To get on the subject though, I don't believe that the figure of a $180 dollar loss can't be accurate. Sony does have the money to take the losses, but a company wouldn't take those loses considering they're in the market to make money. I would like to see the article by Merill Lynch reading their reasoning before I believe this report.




Name:Tim Sutton
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Comment: I work in a computer store and get a fine publication called Game Week. This magazine is a market review for all things videogame related. First off, Kituka is very accurate with his estimate of 80 million, it's just under that. Also, Sony controls over 70 percent of the videogame market. That leaves the last 30 to divide under nintendo, sega, neo geo, etc. Playstation has sold so many units because they have more quality games than all other systems combined. Their library is substationaly larger than that of Nintendo because developers A)favor the lesser difficulty of producing games for Playstation B)it is cheaper to distribute CDs than EPROM cartridges and C)Sony takes less royalties than Nintendo. If you look at the type of games on N64, they're mostly geared towards a younger audience, with titles like Bond and Resident Evil to capture an adults eye. The lesser cost of Playstation titles is also attractive to the consumer, with a large selection of great titles for 20. Also, most new releases being sold at less than $45 from day one. So, don't try and pass the Playstation off as a half rate system, when it is King of the Mountain right now. They're the only company to ever knock Nintendo off the top because they have game developers that produce superior games. At least give Sony the credit they're do, your unresearched speculations do no one any good BuzzBuzz. Do your homework next time, that way people don't have to make you look like a moron.

To get on the subject though, I don't believe that the figure of a $180 dollar loss can't be accurate. Sony does have the money to take the losses, but a company wouldn't take those loses considering they're in the market to make money. I would like to see the article by Merill Lynch reading their reasoning before I believe this report.




Name:Kituka
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Comment: Hey BuzzBuzz, you're right. 75 Million units haven't been sold..........it's closer to 80 million now. The common bullshit excuse people who don't want to believe that Sony is this successful give is that the reason 80 million PS's were sold is because many people had their first PS break down and had to get another one. God, what a bunch of shit. Of the 80 million sold, only a vast minority have had problems. Sony would not be as successful as they are if they sold people a pile of shit, so stop using the same old argument. As to your other point about me saying that all the other companies bullshit us: you're right, Sony has released only one system so far, so it will take more systems to show that they really are the best in the business. But, as sales show, all indications show Sony to be the leader even after this upcoming generation of system wars. Nintendo, damn them, is bullshiting us AGAIN. They haven't released as much as a screenshot of Dolphin software yet- this is truly pitiful. They think that by having a more powerful system they have the upper hand- utter bullshit, as the PS mauled the N64 in worldwide sales and appeal to gamers. Then there's the delaying of Perfect Dark AGAIN (this makes it 3 times that the game has been delayed). The same can be said of Sega- all DC has gotten so far are crappy ports of PC and PS games, with the exception of Soul Calibur (by Namco, who is wholly committed to PS2) and Sonic Adventure (this game disappointed me tremendously). Sony knows what people want so they made God take the form of a console by the name of PS2.




Name:Alexis
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Comment: I absolutely agree with kituka




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Name:BuzzBuzz
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Comment: first of all, to kituka, i seriously doubt that there are 75 million ppl who own a psx, because i have had to buy two since they are extremely cheap. My first one broke after a year and a half and the second is already giving me trouble after only a year(and no, i dont do anything to tear them up, my snes is almost 10 years old and it still runs fine). And, most ppl who bought a psxare casual gamers who only own 2-5 games and probably dont want another system. but the point is that sony stands to lose a whole lot of money if everything doesnt go according to there plans. and whats this crap about the other companies bsing us? sony has released only one system. the others have released many and have at least one great system, so every company has its ups and downs, just because the psx was great doesnt mean the psx2 will kik(im still gunna buy one though. the point is...dont judge a system just buy its name, or its past.) cool.




Name:Kituka
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Comment: Hey, you're absolutely right. What I meant by them caring for their customers is that they give us the quality entertainment that we expect, and that they give it to us on a regular basis.




Name:Iron Curtain
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Comment: Kituka: "Cares for their customers?" Sony doesn't really care for us, they care about Washington, Lincoln, Hamilton, Jackson, Grant, and Franklin! They act quasi-consumerist because Sony knows a good relationship with their customers is a way to reattract them for a second time! I'm sorry if I sound anti-Sony (which I'm not, since I can't shut up talking about how great the PS2 might be), but Sony is a for-profit company, so I take everything Sony does (even the most noble of what Sony does) as "for-profit." Go figure.




Name:Kituka
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Comment: After a successful launch and in the months thereafter, if PS2 sells well, Sony will break even. I'm not worrying at all. It's Sony, and Sony sells. Just look at the PS- over 75 million units sold worldwide. Now, if just half of those PS owners go out and make plans to get a PS2(it'll be way more than a half- probably more PS2's will be sold than PS'2 were sold), Sony will make profits unheard of. The Bottom Line: Stop worrying. Just look at Sony's on-line store which, in the minutes it opened up for the first time, registered over 500,000 hits per minute!!!!! Hell, they had to shut it down because the demand for PS2 was so huge!!! If Sony wanted to they could sell 10 million PS2's the first day, no problem. Million's of people want the thing, and they want it bad. They know Sony doesn't bullshit them like Sega (32X, Saturn) and Nintendo (Virtual Boy, the damn delays, N64-yea N64- it was supposed to have graphics on par with SGI workstations) consistently do. Sony delivers the best marketing, the largest quantity of quality games, and cares for their customers. Besides, PS2 is an all-in-one entertainment complex. DC? A toy. Dolphin? A kiddies' toy. X-Box? A computer geek's toy, not for console gamers.




Name:Alexis
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Comment: I think there must be a mistake.SONY would stop the playstation2 if there are chances of such a loss in the future.SONY is very serious and i am very sure that SONY have made predictions before deciding about playstation2.If not then SONY has made a big mistake.If yes then the figure $180 is wromg or SONY's future loss is very small and wont have any major problems to the company.




Name:Iron Curtain
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Comment: This also means that Sony will lose $360 million if they sell 2 million units!




Name:Love
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Comment: Holy! That's a HUGE loss, even for a company of Sony's size and strength. It's gonna take a boatload of licensing revenues to make up for $180 loss for every PS2 sold.




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