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Nintendo Businesses Sony Entertainment Games

Nintendo, Sony Take Big Financial Hits 119

Posted by Soulskill
from the can-we-call-it-a-bubble-yet dept.
The Installer writes with news that Nintendo is seeing a significant financial downturn to match the general slowdown in the rest of the industry. "Sales of the once unstoppable Wii console have tumbled for the first time since its launch three years ago, sending the gaming giant's quarterly profit down 61 percent." Meanwhile, Sony is feeling the pain as well; the company sold 500,000 fewer PS3 consoles than in the previous quarter, and PSP sales saw an even bigger drop. Interestingly, Sony also revealed that the manufacturing cost of the PS3 has now dropped 70% since it was released. The drop in sales has caused the resurgence of rumors about console price cuts.
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Nintendo, Sony Take Big Financial Hits

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  • by christoofar (451967) on Saturday August 01, 2009 @03:24AM (#28906813)

    Will Nintendo lay people off in a "Wiistructuring?"

    • by iamapizza (1312801) on Saturday August 01, 2009 @03:33AM (#28906865)
      A friend of mine who works at Nintendo was fired a few days ago... he was in-console-able.
    • by MukiMuki (692124) on Saturday August 01, 2009 @03:36AM (#28906887)

      Nintendo's the only one not surprised by this. They didn't have a single major release, save for maybe Wii Sports Resort (which came out when, 2 days ago?), this year. By Christmas they'll release New Super Mario Bros. Wii and next year brings Mario Galaxy 2, possibly a Wii fit expansion or whatever they're doing with the pulse sensor, and lo and behold, those months will do ridiculously well for the Wii, and the year afterward, on the same month, analysts will worry about Nintendo's downfall when the sales aren't as high due to a lack of major titles.

      It's the same dumb shit with Hollywood. Half a dozen studios release films in June with quarter-of-a-billion budgets+marketing campaigns and when all of those types of films don't come out 'till August the next year, there's an article about how the film industry is failing, all because it's easier to make up "Sky is falling" predictions than to actually wait a whole fucking fiscal year and take into account the number major releases that hit a particular year.

      Games and film have 2-3-year production cycles, and many times projects get delayed. The money still comes in (albiet with a higher cost due to the delay, which, for better companies, tend to result in more revenue for a better product), but as it doesn't come in steadily, it gives "analysts" plenty of fuel to predict doom whenever there is none.

      • by Jurily (900488) <jurily@noSpAM.gmail.com> on Saturday August 01, 2009 @04:57AM (#28907201)

        than to actually wait a whole fucking fiscal year and take into account the number major releases that hit a particular year.

        Oh come on. Everyone knows nothing happens towards the end of the year anyway. Especially not that thing where everyone buys stuff for their kids at the same time.

        • by plague3106 (71849)

          Urm, did you happen to read the news last fall? Christmas shopping was down a HUGE amount last year as people cut back greatly.

      • by Anonymous Coward
        "Meanwhile, Sony is feeling the pain as well; the company sold 500,000 fewer PS3 consoles than in the previous quarter, and PSP sales saw an even bigger drop. Interestingly, Sony also revealed that the manufacturing cost of the PS3 has now dropped 70% since it was released."

        That's just weird. I suppose that everyone who wants a PS3 has bought one. Similarly, I notice Ford has not sold many Model T cars recently.

        Poor Sony, not selling as many, but making more money, because the cost has dropped to one-
        • by KDR_11k (778916)

          Actually Sony took higher losses [gamesindustry.biz]. It might not be only from losses on PS3 sales but operating losses went from 4.6 billion yen to 39.7 billion yen for the PlayStation division year-on-year. Software sales were down from 22.8 million to 14.8 million so it's not just hardware that's declining.

          • by ivan256 (17499)

            Did you miss the part of the story where PS3 costs dropped by 70%? They're probably making a profit on PS3 sales. So no, it's not "only" losses from PS3 sales.

            Where did the money go then? Well, they just developed a completely new console, which they needed to ramp up manufacturing on before it goes on sale in October...

            Of course they were probably counting on strong software/PS3 sales to cover most of that loss. Oops.

      • EA was pretty smart this summer too with both a free and a $15 battlefield game
    • Re: (Score:2, Funny)

      by clarkkent09 (1104833) *
      No, some will be offered Wiitirement, while others will be Wiideployed.
    • They are going to outsource their software to Indian developers, the quality might slip but it's often much cheaper to have developers operate from a wiimote site.
    • No, it will be a wave of Wiidundancies.
  • The games... (Score:5, Insightful)

    by DreamsAreOkToo (1414963) on Saturday August 01, 2009 @03:45AM (#28906915)

    If I hadn't already bought a Wii, I wouldn't buy one either. I'm disappointed with the game line up. 3 years have passed and I can name 3 games that I'm glad I bought. I can also name off a dozen names I deeply regret having ever bought/rented.

    Back in the 80s and 90s, any schmuck could decide to go make a game. With enough dedication and talent, he could really make something awesome, too. I mean one day Robyn and Rand Miller decided to sit down and make a game. And that game (Myst) was the best selling game for the better part of a decade.

    Now, it takes millions of dollars for the spoiled consumer to even *consider* playing a game. So now we see less and less games being made by the inspired and talented, and more and more games being made by corporate committee.

    As time marches on, I have a feeling we'll see a (relative) dieing out of the multimillion game and the rise of the $10-20 household device game. (Cellphones and computers to be specific.) It takes inspiration and talent to make a good game, not millions of dollars of art assets.

    • Re: (Score:3, Interesting)

      by christoofar (451967)

      My Wii is a doorstop.

      I've been sort-a temped to get a Wii Fit, but I already pay for a $60 gym membership that I use about 3x a week. Kinda defeats the purpose of buying one. Plus the WiiFit is no fun if nobody if you're single and nobody can see you sweat. [Best place to pickup a date short of inter-office dating]

      3 years into the Wii the only game I really liked playing was the Wii bowling in WiiSports, which came with the unit.

      I also use a really nice DLP HDTV projector for games and movies, and I can

      • Re:The games... (Score:4, Informative)

        by mooglez (795643) on Saturday August 01, 2009 @04:37AM (#28907119)

        I also use a really nice DLP HDTV projector for games and movies, and I cannot tell you what a PITA it is to set up that IR bar underneath the projector image in the front side of my living room but yet have the Wii sit in the back of the room where the projector and my amp sits. I have to disconnect everything when I'm done or my dog will trip over all the wires.

        Wireless IR bars have been available a few weeks after the Wii launch. Those really solve the issue with Wii + Hometheater.

        The bar does no actual communication with the Wii, just gets power from there.

        • Also note that these wireless bars, not drawing power from the wii, are also great to use with using the wiimote with your PC.

      • I bought a Wii Fit. It counts as one of the games that I deeply regret. While it was kind of fun at first, it takes FOREVER to do a work out. This is literally how it goes.

        1) Choose a game.
        2) Yay! You picked a game! Do you want to learn how to play that game?
        3) No? Ok, well here's a nifty animation for you!
        4) 20 seconds of workout
        5) Oh no! You suck, your a fatty, hehehe. Here's a nifty animation showing you lose, loser.
        6) Oh my goodness, you scored a high score, let me show you!
        7) Wow, we spent like... 5

        • by drsquare (530038)

          What's worse is that you need to sustain your heart rate to actually burn calories, so it isn't really helpful for anything but muscle toning.

          It doesn't really help that either as there's no resistance.

          And god forbid there's a few people in the room and one person wants a go on the skiing without spending twenty minutes setting it up.

      • by Lorens (597774)

        I also use a really nice DLP HDTV projector for games and movies, and I cannot tell you what a PITA it is to set up that IR bar underneath the projector image in the front side of my living room but yet have the Wii sit in the back of the room where the projector and my amp sits.

        I've been told the IR bar is just two or three LEDs, it does not send any information back to the the Wii system. The information provided by the IR bar is simply "here is the screen", provided to the WiiMote. The connection to the Wii is just a voltage to power the LEDs.

        I know people who use two candles instead of a Wii IR bar.

        HTH.

      • Re: (Score:3, Insightful)

        by MartinSchou (1360093)

        Plus the WiiFit is no fun if nobody if you're single and nobody can see you sweat. [Best place to pickup a date short of inter-office dating]

        This works fine, if you're in shape to begin with.

        Nobody's going to want to date the fattie with huge sweat pits under their arms and loose long sleeved t-shirt and baggy pants that we use to cover up with. And even fewer than that wants to date the fattie who dresses in tight lycra and sweats profusely.

        And if you're that person, you're really not looking forward to sh

        • Re: (Score:2, Insightful)

          by MogNuts (97512)

          I saw this comment and I have to address some things. Only because I've realized not a lot of people actually are not aware of some some things:

          1) To address you picking up people, if someone is unattractive outside of the gym, women won't talk to them either. Unfortunately, that's just how it is and there is nothing u can do about it. And ask yourself this: would you say "NO" to a sweaty, hot woman asking u out? Of course u would say yes. The sweating doesn't matter.

          2) Why did you join that gym? Gyms come

          • Seriously people, instead of blaming the world for your problems, take some responsibility and *DO* something about it.

            I doubt this was aimed at me, but I am actually doing something about it, and I'm quite proud that I'm currently averaging just under a kg/week in weight loss.

            Different gyms ... depends on where you live. Where I live, there is 1 (one) gym inside of 50 kms. Makes it kinda hard to go elsewhere.

            As for getting chatted up by the hot but sweaty chick - of course you'd go for it. But we're not th

            • by MogNuts (97512)

              I just said that I used to be the chubby guy--as you say you were. I never said I worried about other people looking at me at the gym. I don't--never did. And as a side note, I don't care how my physique looks for other people--I only care about the results and the aesthetics of it, for myself--kinda like a person who plays an RPG to get the better/more powerful armor/sword/etc, or a sculptor molding an object out of clay. And FYI I've seen a good number of chubby girls going out with a good-looking guys.

              Th

          • by plague3106 (71849)

            5) Believe it or not, you WANT to workout next to Ms. Fitness champ. They know so much advice to give you, their motivation is glowing and contagious, and generally people at that level are the most down-to-earth humble people you will meet *anywhere*.

            Oh, and shes likely hot, good to look at, and even if she's not training you, you can use her for motivation. I.e., maybe you'll work harder so you'll get into shape so you think you can have a shot with her. Hell, you may impress her simply with the amount

        • by plague3106 (71849)

          I hate to break this to you, but most people don't give a fuck that you're there, unless you're using equipment they want. Even then, most are mature enough to move on to something else for the time being. As for being fat and sweaty... everyone there to work out is going to sweat. Those that aren't are ther efor social time... not working out.

          The fact is that a gym has better equipment and likely knowledgeable people that can help you reach your goal. FWIW, what you do in the gym almost doesn't matter.

      • by tepples (727027)

        Plus [unlike a $60/mo gym,] the WiiFit is no fun if nobody if you're single and nobody can see you sweat. [Best place to pickup a date short of inter-office dating]

        My gym is an arcade that has Dance Dance Revolution. I hear they have Dance Dance Wii now.

      • You should have looked into the wireless "sensor" bars. They've been out for at least a year or two, and those of us with projectors were pulling all kinds of hacks to make one before a properly manufactured solution was available. The manufactured bars are a little larger/stronger and better for a larger room.

        If you don't enjoy the kind of games that are out for the Wii, however, I can't help you.
      • My projector has a video cable going to the front of the room, so that my wii (and everything else, via switchbox) is near the sensor bar and sound system. My speakers are stuck to the wall either side of the image with removable stick things (sub on the floor), and the sensor bar is on a pair of picture hooks.

        Works really nicely. Nothing like house of the dead with lifesize zombies. :)

    • Re:The games... (Score:4, Interesting)

      by tomhudson (43916) <barbara.hudsonNO@SPAMbarbara-hudson.com> on Saturday August 01, 2009 @07:53AM (#28907783) Journal

      3 years have passed and I can name 3 games that I'm glad I bought. I can also name off a dozen names I deeply regret having ever bought/rented.

      So please name them ...

      I bought a Wii at the end of February, and in my 30-disk library (all legit, bought and paid for - my Wii isn't modded), I'd have to say that at least half the games are "I'd recommend them".

      Examples: Mario Kart (everyone likes it), Pinball Hall of Fame (a must-have - noisy), Pop Star Guitar (very addictive air guitar), Trivial Pursuit, Namco Museum Remix, Boom Blox (you'll get a work-out), AMF Bowling, Super Mario Galaxy, Prince of Persia, Shaun White Snowboarding (you really need the wii fit to use this one), Speed Racer (for mindless crash-n-burn vegging out), Blazing Angels.

      The people I've seen complain about their Wii don't spend money on games and accessories, then wonder why they don't enjoy it. Buy 4 remotes, 4 wheels, 4 nunchuks, get a decent library of games (catering to various tastes/ages), and you'll see that people will actually PLAY it when they come over. That's the way to get your money's worth out of the console. Not "Oh, the freebie games ere fun, and I rented a couple others, and bought one or two that sucked, so the console is a piece of crap!"

      • Re:The games... (Score:4, Insightful)

        by PixelScuba (686633) on Saturday August 01, 2009 @12:55PM (#28909743)
        $240 - Wii
        $40(3) - Wiimote
        $20(3) - Nunchuck
        $15(4) - WiiWheel
        ------
        $480

        Now they tell me...
        $20(4) - Wiimotion Plus
        $90 - $wiifit/board (will I need more than one?)
        ------
        $650

        And I still won't have any games for it besides Wii Sports. When you say "you have to buy the additions and accessories to enjoy the Wii" That starts to get pretty damn expensive for this generation's "budget console".
        • by tomhudson (43916)

          First, not all the games require the wii fit balance board - but some do, and for those, you need to buy it, same a buying a joystick for flight simulators.

          Second, if you want to play with 4 people, they're going to need controllers, same as any other platform, including the PC.

          Third, you can buy the motionplus bundled with games (about $10 more than the game without) - so my plan is to buy 4 different motionplus game bundles. It's the logical thing to do.

          As for total cost, I've already spent over $

      • Play Zelda. I know it may seem silly at the start, but don't judge them by that. Zelda 64 and later all seem to have pretty amazing "journeys" to them, if you play for a while. From what I've heard of people playing older Zeldas, the experience is much the same. Easily some of the best games I've ever played, out of a small selection that I even liked.

        • by tomhudson (43916)

          I have Zelda - just haven't had much time to play it (so many games, so little time :-) Got stuck with the horse in the corral - can't jump the fence, and I REALLy hate how the manuals are all fine print and low contrast. Sure, it helps deter piracy, but they're not really deterring the pirates/modders so much as penalizing their paying customers.

          Well, maybe I'll just scan them in and blow them up to readable size/contrast.

      • Second the Pinball game and raise you Wii Active. Williams Pinball HoF is the first pinball game to displace 3D Ultra Pinball Thrillride on my playlist. If they come out with 2 or 3 more of these I will line up to get them.

        As you suggest, we stocked up on games and controls and it got the whole family using it. I've settled on Pinball (which doesn't have to be noisy...adjust your TV/monitor volume to taste), and my wife loves Wii Active. It goes a lot further than Wii Fit (which started off great but
        • by tomhudson (43916)

          But I *WANT* the pinball to be noisy :-)

          Two other games that are sitting on my shelf waiting for free time to try out are Naked Brothers Band and American Idol (no, I have NEVER watched American Idol in my life - I bought it so that when others come over, they will see the familiar name and perhaps try it). As you say, it's an investment in fun for the group, not just one person at a time. And like you, if they release more pinball games, I'm in line.

      • by psyclone (187154)

        AMF Bowling sucks the oil off a bowling ball. I got the game as I hoped it would be superior to the Sports bowling, but it wasn't. Not any mini-games like the strike practice with lots of pins. Also takes forever to just get to the bowling action, and the replays are terrible. I just want to see a close-up replay of my line so I know how to adjust my next shot- just like real bowling. (Some alleys have a fixed replay camera; and real life is always more detailed.)

        Perhaps the new remote sensor could help

        • by tomhudson (43916)

          Perhaps the new remote sensor could help- anyone know if it helps old games or do games have to be programmed for the enhanced sensor?

          It won't do a thing for old games. When you load a game, you're also loading the game's operating system (which runs under the consoles' monitor program). That's why games can't be patched - at least not with the current console. Perhaps the WII2 will allow for loading the whole game image into memory at one time and patching it on the fly with updates off the net ...

      • The Wii is a party console. Your post supports that.

        Use it for what it is!

    • by Bragador (1036480)

      You are forgetting one important industry: flash games. Anyone can make a flash game and these don't need to be at the cutting edge of technology. Honestly, I didn't even buy a PS3, Xbox360 or Wii. When I want to play a game, I log on to Kongregate or a similar website and simply play. And it's free.

    • Have you checked out WiiWare titles? There are some good ones on there and they're all (I think) $10 or less. Here's a few that might be worth researching if you want to get more play time out of the Wii.

      LostWinds - A puzzle platformer which uses the nunchuck to move your character while the pointer controls the wind, used in various ways to fling objects, enemies, your character, etc. to solve the puzzles.

      Bit Trip series (Beats / Core) - Rhythm games with an old-school feel. The first one, Beats, is lik

  • Context Matters (Score:4, Informative)

    by Triv (181010) on Saturday August 01, 2009 @04:03AM (#28906989) Journal

    Context matters.

    "Meanwhile, Sony is feeling the pain as well; the company sold 500,000 fewer PS3 consoles than in the previous quarter, and PSP sales saw an even bigger drop."

    500,000 units is just a number; losing a sandwich is less of a tragedy if you had two of them to begin with. FTFA:

    "Sony did release console sales numbers for the period, which also painted a bleak picture. Quarterly worldwide PlayStation 3 sales dropped from 1.6 million units in the first quarter of the past fiscal year to 1.1 million units in the most recent fiscal quarter, while PSP sales plummeted from 3.7 million units to just 1.3 million units. VAIO sales and profitability were also down, though Sony did not offer specific figures."

    So selling 500,000 fewer units this quarter in this context means that Sony has sold approximately 30% fewer units than last quarter.

    • That could still spell catastrophe if they used commercial paper (bonds) to help ramp up production of the units that were manufactured thus far.

      Let's say you're a self-employed box builder. You sell a box configuration that attracts a new company who wants to outfit all their desktops with your new whizbang baby ITX thin client PCs. Company calls you up and wants 500 of these bad boys.

      To get all the parts for an order this large, you live on the float. On your credit card. You run up your MasterCard

      • Re:Context Matters (Score:4, Insightful)

        by Triv (181010) on Saturday August 01, 2009 @04:26AM (#28907061) Journal

        My point was mostly editorial, that putting $scary_big_number; in a summary doesn't provide any information beyond making the reader think, "Huh. That's a scary big number." To use a familiar number, if McDonald's served 500,000 fewer people today than yesterday it would look like a point of concern if nobody told you that McDonald's serves 47,000,000 people a day on average.

        We're scared of very, very big numbers because we're not trained to comprehend them - we're never going to have to make change for a million dollar bill, so who cares what 100,000,000 pennies looks like.

        • by KDR_11k (778916)

          I've become so desensitized that numbers under a million register only as "small change" in a business context (in a govt context add another three zeroes)... A million is a lot for an individual but nothing for a multinational megacorp.

      • Re: (Score:2, Interesting)

        by kramerd (1227006)

        If a client wants 500 widgets, then you make them enter into a contract for 500 widgets. If your new whizbang baby ITX thin client PCs are a significant portion of your annual revenue, you make em pay for the whole order prior to production and you slap a client logo on em as a bonus, so you can claim these are custom builds and an order for 500 can't be reduced since you can't resell them. If necessary, require custom, non-refundable orders on orders of 1+.

        Then, when they later only want 350, you deliver 3

    • @#$% Sony (Score:1, Flamebait)

      Between installing malware on it's customers' machines, using draconian DRM, constantly trying to shove proprietary crap down our throat, and the recent denial of fair use by it's customers despite using fair usage as an argument to defend against Universal Studios' lawsuit against them, I have decided that Sony can go @#$% itself. I will go out of my way to avoid doing any business with them. I urge everybody else to do the same.

      • Re: (Score:2, Insightful)

        by Ifandbut (1328775)

        I have not encountered any malware or draconian DRM being installed on my PS3.

        • I have not encountered any malware or draconian DRM being installed on my PS3.

          All PS3 games must be signed by Sony, or they won't be allowed to use the RSX chip and half the console's RAM. And I've read that it's harder to get approved for a PS3 game on Sony's PSN than for an iPod Touch game on Apple's App Store. How is that not "draconian DRM" for hobbyist developers and small businesses?

          • by Elshar (232380)

            I think they should relax the restrictions somewhat on the PSN. As someone who has all of the current-gen consoles and bought both hard copies and games off each console's virtual store, I have to say that Sony's is the most lacking for content. Unfortunately, the XBox with his shovelware marketplace and "community games" is just utter crap. 99% of the stuff that shows up on there is just outright garbage, and really shouldn't be on there (IE: There's one "Community Game" that amounts to clicking the A butt

            • by tepples (727027)

              There's one "Community Game" that amounts to clicking the A button several times to "win" it

              I'd bet it was called Second Half of Xenogears.

              I honestly think the Wii has the best marketplace. It might actually be even more restricted than the PSN or XBL, but the huge catalog of 80's/90's console games as well as very select newer games is nice.

              In your opinion, for which platform should a small business develop a (substantial) multiplayer casual game?

          • by Ifandbut (1328775)

            All Xbox360 games must be signed by Microsoft. All Wii games must be signed by Nintendo. All PC games that use the "Games for Windows" or "Games for Windows Live" must be signed by Microsoft.

            None of the games I have played on my PS3 have disabled the use of my PS3's Ethernet or Blu-Ray player (*cough*StarForce*cough*).

            From the consumers point of view there is no malware or draconian DRM.

            • All PC games that use the "Games for Windows" or "Games for Windows Live" must be signed by Microsoft.

              But unlike games for Xbox 360, Wii, and PLAYSTATION 3, games for PC need not use the "Games for Windows" logo; there is a freely licensed alternative logo that reads "PC DVD-ROM SOFTWARE".

              From the consumers point of view there is no malware or draconian DRM.

              I would argue that the very concept of a "consumer", meaning one who just consumes and doesn't interact, itself arises from DRM and other aspects of copyright. With a few notable exceptions such as RPG Maker 2 for PlayStation 2, console games are not moddable, which forces players to be consumers.

              • by Ifandbut (1328775)

                I would argue that the very concept of a "consumer", meaning one who just consumes and doesn't interact, itself arises from DRM and other aspects of copyright. With a few notable exceptions such as RPG Maker 2 for PlayStation 2, console games are not moddable, which forces players to be consumers.

                Well yes, that is the point. If you want to be able to mod a game or even make your own level you buy the PC version of the game. That has been the rule for who knows how long. It is stupid to assume you would be able to mod a game on a console because no one expects to be able to.

                When people talk about DRM it is normaly in respect to not being able to resell games or other media (DRM iTunes music, PC games that require activation online like Spore or Call of Duty).

                DRM does not exist on the console yet. You

                • by tepples (727027)

                  If you want to be able to mod a game or even make your own level you buy the PC version of the game.

                  Then what if I also want to have multiplayer without buying four PCs and four copies of the game?

                  • by Ifandbut (1328775)

                    If you are talking about split screen multiplayer then again, you should not expect that from the PC version. Console games having split screen multiplayer and PC games not having it has also been the rule for who knows how long.

                    Again:
                    If you want to mod and make your own levels: Get the PC version.

                    If you want to play split screen multiplayer then get the console version.

                    These are the standards that have been around for as long as I have been playing games. Would it be nice for them to change? Yes. Do I expe

                    • by tepples (727027)

                      Again:
                      If you want to mod and make your own levels: Get the PC version.

                      If you want to play split screen multiplayer then get the console version.

                      If I want to play split screen multiplayer inside of my own levels: Get what version?

                    • by Ifandbut (1328775)

                      As of right now you cant. Like I said, it would be nice for the standards/traditions/rules-of-thumb to change but I dont expect them to. At least not this gen, no clue what the next gen will bring.

                      On that note I know of a game that does not follow these standards: LittleBigPlanet. It would be nice if this is the starter of a new trend in multiplayer and user-generated content, however it currently is one of a kind.

            • Well yeah, but you can write a game for the xbox360 and get it almost automatically signed by using the community games process. So it's not quite a valid comparison.
      • by tepples (727027) <{moc.liamg} {ta} {selppet}> on Saturday August 01, 2009 @07:31AM (#28907705) Homepage Journal

        Between installing malware on it's customers' machines, using draconian DRM, constantly trying to shove proprietary crap down our throat [...] I have decided that Sony can go @#$% itself.

        What console doesn't use "draconian DRM"? What video game published by a major label isn't "proprietary crap [gnu.org]"?

    • by ivan256 (17499)

      Additional context. Sony announced a newer, cooler PSP, but you can't buy it yet. They spent a buttload of money on development, which they haven't had a chance to recoup yet, and PSP sales are artificially low now that everybody knows to wait for the new one coming out in two months. This is probably the biggest source of their losses.

      Also, now that they said this, can we finally lose the "Sony loses $x00 on every PS3 sold" crap? Clearly they're cashflow positive on the hardware now.

  • Amazing (Score:4, Insightful)

    by CarpetShark (865376) on Saturday August 01, 2009 @05:18AM (#28907265)

    Old consoles aren't selling as if they were cutting edge. Fascinating.

  • ...I still think Sony is working on a new PS3 model with far more integrated chipsets to cut the cost even further.

    With more integrated chipsets, the circuit board production cost goes down dramatically, and if properly engineered it may even run cooler than the original. This could result in a PS3 Slimline like what Sony did with the PlayStation 2 hardware redesign.

    • But is that going to get us a price drop? When the PS3 first dropped, everyone justified the price of the console because Blu-Ray players were just as expensive, if not more so. Well, I'm seeing hundred dollar Blu-Ray players now, but the PS3 is as expensive as it ever was.
      • by MtViewGuy (197597)

        That's because Sony is still using the original PlayStation 3 design, which is proving to be pretty expensive to build.

        The rumored PS3 Slimline model will likely be far less expensive to build, and may likely sport the same 1.8" 120 GB hard drive used on the current Apple iPod classic portable media player. I haven't heard when will Sony offer such a new machine, especially since the news from Chinese/Taiwanese assemblers and component manufacturers have not mentioned Sony placing any orders for the parts f

    • by hibiki_r (649814)

      There's no 'could'. There's already some pictures out there. It's coming out this year.

      • by MtViewGuy (197597)

        However, given that Chinese/Taiwanese companies will be involved in producing this "new" PlayStation 3, I've heard NOTHING from the assemblers or component manufacturers about Sony ordering parts or setting up assembly lines for the new model. In contrast, we know that Apple does have a tablet-like device on-tap because of several reports about Apple ordering circa 10" LCD panels for such a device.

        If this new PS3 does exist, I expect it to use the same 1.8" 120 GB drive used on the current Apple iPod classi

  • This is because of everyone downloading pirated gaming consoles off the Internet. Everyone, say hi to the GIAA (Gaming...)
  • All Japanese companies are seeing sales slowdowns. The Yen is strong against the dollar, which means costs for Japanese companies are higher, which means that they can't reduce prices to the extent their non-Japanese counterparts can. This, coupled with a huge recession which is already causing consumers to belt tighten leads to huge sales decreases. In other words, this has little or nothing to do with the games industry in particular.

    Hitachi, Toyota, Honda and Mitsubishi also all saw sales decreases of

    • If we were to interpret it that way, what would the uneducated video game journalists rant about? Getting all the facts is boring and leaves no room for conjecture, so shut up! :P

  • This is shaping up to be a very interesting generation of video games. [wikia.com] Only a few years left!

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