Sony takes a number out of the M$ book of console starts

[Melbosa]

http://www.gameinformer.com/NR/exeres/51193ED7-4EF9-4C81-AFFC-D616CC56FFFA.htm

At the opening for a Sony interactive science center in Beijing today, Sony CEO Howard Stringer said that he expects losses from the game division to reach 200 billion yen ($1.71 billion), nearly twice what the company estimated earlier.

"Considering some of the additional costs of PlayStation 3," Stringer said. "We have to generate some excitement and profits from elsewhere in the company to offset the performance of PlayStation 3."

The CEO did, however, promise 5 percent profit margins for next year. He also said that the film and consumer electronics divisions were doing quite well. In regards to the PlayStation 3 delay in Europe, Stringer had the following to say:

"I think the idea of worrying about a delay in PlayStation is slightly strange to me. Every complex technology runs the risk of delays.

The point really is that PlayStation 3 is already finished and has been tested in America and has been deemed a creative success. In the end that is what counts."

[Lazybones]

More bad news for Sony

http://ps3.ign.com/articles/742/742510p1.html

What's worse than 100,000 units at launch? How about 80,000? The Nikkei Keizai Shimbun morning edition reports today that due to component shortages, Sony will have only 80,000 units ready for the PS3's 11/11 Japanese launch. This cuts back by a fifth the initial launch target of 100,000.

The lack of digits in that number is even more staggering when you consider that the PS2 sold out of nearly a million units when it launched back in March of 2000.

[Mr. Analog]

I think he should be also considering some of Sony's 'tarded behavior and loss of face in the public eye this year.

[Shayne]

http://seattlepi.nwsource.com/business/290375_software30.html?source=rss

Manufacturing costs for Microsoft's Xbox 360 video-game console have been falling faster than expected, the company disclosed last week. Even so, it looks like gamers will need to wait awhile for a price cut.

One reason is that Microsoft continues to lose money on the Xbox 360 -- albeit to a lesser degree than it has in the past. But more notably, the Redmond company's game console is already positioned to have a price advantage over Sony's PlayStation 3 when the competing machine is launched next month.

A Microsoft spokesman said last week that the company has "no plans to adjust the price of the Xbox 360 this year."
Unless the company alters course, that would rule out a price reduction for the upcoming holiday shopping season.
"They'll hold off dropping the price as long as they possibly can," said Matt Rosoff, analyst at independent research firm Directions on Microsoft.

In contrast, Microsoft reduced the price of the original Xbox by $100 six months after its debut. But this time around, the situation is different. In addition to the PS3's price difference, the Xbox 360 has a yearlong head start.
The situation gives Microsoft "the luxury of waiting" to reduce the price, said Michael Pachter, an analyst at Wedbush Morgan Securities.

Microsoft is turning that around quickly though.  With Microsoft being in control of the hardware they can shop chip manufacturing around, etc.  They are also die shrinking in the spring which will further cut costs.

[Thorin]

http://www.gameinformer.com/NR/exeres/51193ED7-4EF9-4C81-AFFC-D616CC56FFFA.htm

At the opening for a Sony interactive science center in Beijing today, Sony CEO Howard Stringer said that he expects losses from the game division to reach 200 billion yen ($1.71 billion), nearly twice what the company estimated earlier.

"Considering some of the additional costs of PlayStation 3," Stringer said. "We have to generate some excitement and profits from elsewhere in the company to offset the performance of PlayStation 3."

The CEO did, however, promise 5 percent profit margins for next year. He also said that the film and consumer electronics divisions were doing quite well. In regards to the PlayStation 3 delay in Europe, Stringer had the following to say:

"I think the idea of worrying about a delay in PlayStation is slightly strange to me. Every complex technology runs the risk of delays.

The point really is that PlayStation 3 is already finished and has been tested in America and has been deemed a creative success. In the end that is what counts."

Good to know that the CEO thinks all that's necessary is to have a creative success, rather than, say, making profits for the shareholders...

[Lazybones]

Good to know that the CEO thinks all that's necessary is to have a creative success, rather than, say, making profits for the shareholders...

I just what to know how you can have a product that is a creative success if it hasn't even shipped yet.

[Mr. Analog]

Good to know that the CEO thinks all that's necessary is to have a creative success, rather than, say, making profits for the shareholders...

I just what to know how you can have a product that is a creative success if it hasn't even shipped yet.

It's been created? I think DNF is a creative failure (since it doesn't exist) lol

[Tom]

I like how DNF can also stand for Did Not Finish.

[Mr. Analog]

I like how DNF can also stand for Did Not Finish.

LOL, Duke Nukem abended with return code 0.999999999999999999

[Shayne]

DNF will make it out, it will also be on all consoles including previous gen i bet.  It wont be ground breaking, it will feel very generic, but it will make it out.  It will sell poorly, Blockbuster/Rogers will have 25 copies for each console on their shelves and they will rent as gamers will be curious.

I would like to see a development company like Infinity Ward who knows how to great scripted action sequences take over its development.  A lot of potential, but as 1UP was saying in a podcast not too long ago, the gamers who played DN3D have all grown up and the immaturity that made that game so popular will probably be lost on the older crowd.

[Tom]

imo, its taken so long that the game is already dead. dead before it even has a chance to be released. Might be cheaper for the studio and producer to just dump the thing, and save on the cost of storing millions of copies of a game that noone wants (E.T. Anyone?).