(IGN)PlayStation 4 May Struggle With Profitability

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 4 years ago '12        #1
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OldBusiness 163 heat pts163
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(IGN)PlayStation 4 May Struggle With Profitability
 

 
Sony may be winning the race for positive buzz and consumer goodwill over its rival Microsoft in the months leading to the release of PS4 and Xbox One, but interesting choices the company made in recent years may hinder the company from making heavy profits once the console’s out the door.

As we reported last week, Sony turned a very modest profit in the last fiscal quarter. However, Bloomberg reports that the U.S. dollar’s rise against the Japanese yen may end up hurting Sony’s PlayStation division’s ability to deliver a strong performance on the balance sheet.

“Those currency related losses [from the quarterly report] are poised to deepen as analysts project a further 10 percent rise in the dollar by the end of Sony’s year in March, based on 74 analysts’ estimates compiled by Bloomberg,” the news agency notes, stating later that, “While the weaker yen will lift the value of sales abroad for the new PlayStation 4, margins will be crimped as parts and production are paid for in dollars.”

Sony originally “agreed to pay suppliers in U.S. currency to reduce costs as it made plans to challenge Microsoft in the U.S. video-market.” This was a move designed “to shield its PlayStation game unit from a strengthening yen,” but now that the dollar is on the rise, the move is “backfiring.”


Sony has good news to look at, though, even apart from its exceptionally strong pre-order numbers. 70 percent of Sony’s revenue comes from markets outside of Japan, meaning the company is only partially reliant on sales measured in a weakened yen.

And, as Bloomberg notes, the PlayStation 4 will cost £349 in the UK and €399 in the rest of Europe. That also spells good news for the company, considering £349 is equivalent to $541, and €399 is equivalent to $532. The PS4 will only cost $399 in the US.

Finally, Bloomberg confirms that while the PlayStation 3 contributed to Sony’s monumental losses directly after the launch of the console – amounting to somewhere in the region of $3.5 billion – the company doesn’t anticipate anything similar to happen to PS4, primarily because “the amount of investment” in the console “is much, much smaller,” according to Sony’s Masaru Kato.

While PlayStation 3 didn’t turn profitable until nearly five years after it launched, Sony’s Andrew House stated that the company “will not generate anything like the losses [Sony] did for the PlayStation 3.”
visit this link PlayStation 4 May Struggle With Profitability - IGN

For some strange reason I didn't see this article posted here image

I swear this next gen is sounding more and more like the last one as the days go by image . Oh well they got my 400 bucks already, just give me my console before ya go selling more buildings and laying more people off.

If its a repost then my bad image

41 comments for "(IGN)PlayStation 4 May Struggle With Profitability"

 4 years ago '06        #2
coolio 57 heat pts57
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IGN will struggle with profitability if they make an article like this again



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 08-10-2013, 02:03 AM         #3
Cya Nerd 
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Another building sold
More people laid off
 4 years ago '12        #4
OldBusiness 163 heat pts163 OP
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 coolio said:
IGN will struggle with profitability if they make an article like this again



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Now now now how can some people be so dense. I mean with the 3.2 teraflops and 14.8 gigawatts inside the console, plus the 8 GB of GRRD58 RAM inside it means its a powerful system. I just cannot understand how some of you would settle for a less powerful system. I know i'm not biased, I can show you the drawer I live out of with 3 games inside and a pair of shoes randomly sitting on top of it
 4 years ago '06        #5
ChevyBrah 216 heat pts216
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ps4= freeeeeeeeeee sh*ttttttt

sony= no monieeeee

 4 years ago '06        #6
coolio 57 heat pts57
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 OG k!lla said:
Now now now how can some people be so dense. I mean with the 3.2 teraflops and 14.8 gigawatts inside the console, plus the 8 GB of GRRD58 RAM inside it means its a powerful system. I just cannot understand how some of you would settle for a less powerful system. I know i'm not biased, I can show you the drawer I live out of with 3 games inside and a pair of shoes randomly sitting on top of it

randomly?
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polyurethane in the rubber of the shoes helps conductivity in each flop thus increasing the teras





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overclocking my console right away when i get it








 ChevyBrah said:
ps4= freeeeeeeeeee sh*ttttttt

sony= no monieeeee



"monie" im convinced ur hepatitis B vaccine was part potassium chloride as a child
 4 years ago '06        #7
ChevyBrah 216 heat pts216
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 coolio said:

"monie" im convinced ur hepatitis B vaccine was part potassium chloride as a child
bi*ch n*gga why are you always on my d!ck????????????

your worse than crazy a.ss hd !!!!

asians....say monieeeee
 4 years ago '06        #8
coolio 57 heat pts57
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i can picture ur parents trying to convince other kids to beat the sh*t out of u
 4 years ago '04        #9
d2921 2850 heat pts2850
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 OG k!lla said:


For some strange reason I didn't see this article posted here

I swear this next gen is sounding more and more like the last one as the days go by . Oh well they got my 400 bucks already, just give me my console before ya go selling more buildings and laying more people off.

If its a repost then my bad
your mums aint hug you as a child ?
its okay b
 4 years ago '11        #10
KingP1n 342 heat pts342
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Sony actually only started making profit with the PS3 in 2010.
 4 years ago '06        #11
edouble2k6 1 heat pts
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Sony has good news to look at, though, even apart from its exceptionally strong pre-order numbers. 70 percent of Sony’s revenue comes from markets outside of Japan, meaning the company is only partially reliant on sales measured in a weakened yen.

Finally, Bloomberg confirms that while the PlayStation 3 contributed to Sony’s monumental losses directly after the launch of the console – amounting to somewhere in the region of $3.5 billion – the company doesn’t anticipate anything similar to happen to PS4, primarily because “the amount of investment” in the console “is much, much smaller,” according to Sony’s Masaru Kato.
So what was the point of this article again? More trolling from IGN I see...
 4 years ago '06        #12
ChevyBrah 216 heat pts216
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 coolio said:
i can picture ur parents trying to convince other kids to beat the sh*t out of u
your confused about your childhood ....sorry your parents were white meth abusers and beat you every day

you came out a dweeb a.ss bi*ch
 4 years ago '12        #13
ThePainkiller 347 heat pts347
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Yawn.
 4 years ago '12        #14
dingbat 11 heat pts11
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Now if the tables were turned and this was an Xbox One thread...


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 4 years ago '04        #15
Da Ill One|M 4602 heat pts4602
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I'm sure it will probably be like this generation they will start making a profit a couple years down the road when the slim version comes out... Jut one stop closer to my dream of one console to rule them all... lol
 4 years ago '04        #16
Da Ill One|M 4602 heat pts4602
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 Mr I 95 said:



yea whoever said competition breeds innovation was a retard
there would be cmopetition with what matters... GAMES...
 4 years ago '04        #17
Da Ill One|M 4602 heat pts4602
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 Mr I 95 said:
there is on the console that matters...playstation
that's EXACTLY why I want one machine to play them all... all you fanboys would shut the fu*k up...
 08-10-2013, 12:08 PM         #18
Killa Kwamz 
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Sony originally “agreed to pay suppliers in U.S. currency to reduce costs as it made plans to challenge Microsoft in the U.S. video-market.” This was a move designed “to shield its PlayStation game unit from a strengthening yen,” but now that the dollar is on the rise, the move is “backfiring.”

lol thats what they get betting against the US dollar.
 4 years ago '11        #19
Jesszman 2209 heat pts2209
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 Da Ill One said:
that's EXACTLY why I want one machine to play them all... all you fanboys would shut the fu*k up...
But Naughty Dog/Activision/Whomever makes the best "all in one console games"
 4 years ago '05        #20
Krazie 134 heat pts134
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 Da Ill One said:
I'm sure it will probably be like this generation they will start making a profit a couple years down the road when the slim version comes out... Jut one stop closer to my dream of one console to rule them all... lol
That's the dumbest thing I heard on here in awhile.. Are you HD too?

That'd be one hell of a twist.
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