Do you think Sony will go bankrupt?

Question

Honestly I do, if there's 1 thing Sony could not realize, it was that they were making a game system. It costs more money 2 make a PS3 than what they're selling it for. That's why they overprice their games and accessories. I'm not trying 2 offend anyone, but Sony made a very stupid mistake. I just wanted 2 know others opinion on this matter.

The only reason Sony ever got involved in gaming because, their other sales were going down. They are in a hole. They are prepared for bankruptcy, just Google it.

1 more thing, they have the nerve 2 make a blu ray player and sell it at $1000. Who's gonna buy that. I'm sorry but, how much more stupid can they get!

Answer 1

Sony's in a very odd situation right now.

For the past few years, their game division was the only one they had turning a profit. Now their games division is down (According to the finincials they just announced, over $800 million down just in July-September this year), but their movie business (which had previously been a money sinkhole) is turning around. Not only are they losing money on each system sold, but they are losing money on each game they make, because there aren't enough systems in consumer hands to buy enough copies. Will their games division turn around? Maybe. But it never did for Microsoft during the life of the XBox (or so far with the 360), so it's not a guarantee. Clearly, they know something is majorly wrong in their original business plan, when they are dropping the price in the US for the second time in about 4 months, after the purchacing power of the dollar just tanked.

If they do find themselves in a bind for money, they could actually have trouble finding anyone willing to give them a loan the size they would want, particularly with how the sub-prime mortgage mess is causing pretty much the entire globalized financial industry to go into lock-down mode agaisnt any lending that's the least bit risky.

Answer 2

Sony will not go bankrupt. They might lose money on every PS3 sold, but in the long run, if Blu-ray becomes the next format, then Sony is going to make a lot of money from lending out the Blu-ray technology.

Also, Sony isn't losing as much money as it originally did when the PS3 first came out. The Blu-ray parts have gotten cheaper, so Sony can afford to lower the price.

Sony will also make up the money from games, accessories, PSN downloadable games, etc.

The PS3 is only losing money during it's first 12 to 18 months. After that, they start making a profit on all PS3 sold. MS is already making a profit on every 360 sold.

Answer 3

No Sony isn't going to go bankrupt. When a manufacturer releases a new console they almost always sell the console at a loss and don't start to profit from console sales for a little while. Most of the money made from Sony now will be from games and accessories.

Plus, Sony sells laptops, digital cameras, PS2 games, PSP's, PSP games and more. Sony just isn't all about the PS3. Sony has money coming in from different sources. Just because they are losing money with the PS3 doesn't mean that they will go bankrupt. In business you have to take risks to make a profit and that is what Sony did, and IT WILL pay off.

Also, The Red Ring of Death on the Xbox 360 was estimated to cost Microsoft a little over 1 billion dollars because Microsoft had to repair consoles, or replace consoles, so really if you ask me, Microsoft is losing a lot of money on the Xbox 360. And I'm not making any of this up about Microsoft losing money because I saw it on the news online and I saw in on televison.

Answer 4

Considering all the bank they've made off of PS2 (Most popular and best selling system of all time) with over 120 million PS2's sold worldwide they've made so much off PS2 that PS3 can get off to a sluggish start.

Also, PS3 and 360 games are priced the same and you need to buy more accessories for a 360 than a PS3. For example I can use the same blue tooth set for my PS3 that I use with my phone. 360 you need to buy a Microsoft headset. If I want Wifi for my 360 I need to buy a $100 dollar add on. If I want to watch HD DVD movies on 360 its another $170. All those things are built in to a PS3.

So when you take a step back Sony is giving you more for your money and with newer, better, more reliable technology.

Sony won't go Bankrupt and PS3 is going to outsell 360 for sure and it may catch the Wii but the Wii isn't really in the same realm as PS3 and 360. Don't forget 360 is also Microsofts least profitable division and Xbox is only popular in the States.

PS3 will be fine. Ps2 had virtually the same start.

Answer 5

PS3 sales repeating the story of PS2 sales. Poor sales in the beginning followed by crazy breakthrough. Sony used to lose money on every PS2. At that time people had doubts about DVD format. Now it's the same story with PS3. Sony has a very good tactical scheme. They'll never invent money in something that won't bring them money in the long run. Besides that Sony is multinational corporation. It owns a lot of factories, movie companies, multimedia networks all over the world. Plus production of all kinds of electronic goods (starting from cheap MP3 players and ending with very sophisticated high priced computer networks and large-scale robot systems).

Answer 6

No. They've just reported profits for Q2 2007, in spite of gaming losses (which will get better as you go deeper into a consoles lifetime because you lose the original development costs and the components become cheaper)

As for $1000 blu-ray player. Well, if there are people out there that want it and will buy it, and you can bet your bum there is, why not?

Thirdly, Nintendo aside, pretty much every console has cost more to make than it's sold for (at least to start with).

Answer 7

No they won't go bankrupt, they are a multi-billion dollar company that makes thousands of consumer products other than the PS3. They also manufacture parts for hundreds of other companies worldwide, so they are nowhere near even possibly going bankrupt.

Answer 8

they could but they had to sacrifice alot for their vision of what the ps3 could be. i can say one thing and it is if sony can realise everything they want to with the ps3 it will be the best console ever.

Answer 9

sony is also in other markets other than video games so they are alright

Answer 10

Wii and 360 are killing them and there is nothing they can do about it..its very sad