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According to UBS, owners of a PS3 need to buy a minimum of 30 games in order for Sony to break even over the cost of the console.

This is up drastically from the 8 games required for the PS2 to cover production costs.

Source

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Join the Army, see the world, meet interesting people - and kill them.

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nah, surely not . . . . . . . . blimey . . . . . . . . well i'm not buying that much. hell i probably never bought 30 games for the ps2 but this is £xxx amount of money for each game. i.e

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Because the new console has involved significantand PS3-dedicated research investment by many of the component manufacturers, Sony is understood to have less scope to force prices down at its suppliers.

if this is the case then i expect they'll make it back eventually, they just won't be able to make a ps4 for a while. hang on, this is just break even and not even into profit. tut tut tut

Sony officially shot itself in the foot.

looks like it came clean off too.

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"Have you ever seen a baby do that before?"

Considering that Sony is also marketing the PS3 as a BluRay DVD player and plans to offer online content for sale, they don't have to make it up completely with games.

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Veni, vidi, dormivi.

PS3 can go in the corner and die like it should.

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War is for the participants a test of character; it makes bad men worse and good men better. - Joshua Chamberlain

U sir R a n00b >:-( - Cactuar

Quote (BGrugby @ 2nd December 2006 03:20)

PS3 can go in the corner and die like it should.

hmm, well i guess they are still generating cash from other games consoles and stuff. (think karusuman said something like this) and this goes to (i presume) new projects, so maybe they're not in quite the mess they appear to be?

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By one analyst’s calculation, which assumes that Sony makes about $10 in revenues on each game whether produced by itself or a third party, 30 games must be sold per PS3 console to make up for the losses which Sony will incur over the next few years before the hardware itself achieves break-even.

the PS3 will sell well but it's the whole 30 games thing that may make the difference

Quote (BGrugby @ 2nd December 2006 03:20)

PS3 can go in the corner and die like it should.

And if that's the most intellegent thing you'd have to say on the matter, I think perhaps the world would not be a worse place if you were to follow. It would not be a better place, but the fact is nothing would change really in either event.

This works solely on games, not peripherals, sign-up fees, developer licences, DVDs, sales as bluray, or support from elsewhere. In short, its an assement I'd not trust to the letter, but I'd take note of it and scale it down a bit.

It's not over yet.

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"Only the dead have seen the end of their quotes being misattributed to Plato."
-George Santayana

"The world will little note, nor long remember what we say here..."
-Abraham Lincoln, prior to the discovery of Irony.

Quote (Del S @ 2nd December 2006 11:05)

And if that's the most intellegent thing you'd have to say on the matter, I think perhaps the world would not be a worse place if you were to follow. It would not be a better place, but the fact is nothing would change really in either event.

Jesus, man..... It's an online Final Fantasy message board.

Excellent point, Kara. Sony will make money back through movies as well as games. Movies don't sell for nearly as much as games, though, so the profit margin for Sony would be significantly less.

I have no idea what the percentage of a game sale is that goes to the game company and to the console provider. Let's just throw out a random guess and say its 20% to the console, 5% to the retailer, 75% to the gaming company (or "Hollywood" in the case of movies instead of games).

So, for every game that sells for 60 bucks, Sony makes 12 dollars.

But, for every movie that sells for 15 bucks (dvd avg price, I would imagine), Sony will only get 3 bucks.

That would mean that it would take 4 dvd sales to just equal one game sale in terms of profit for Sony.

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Join the Army, see the world, meet interesting people - and kill them.

~Pacifist Badge, 1978