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Sony says PS4

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And Microsoft is in a world of hurt in terms of PR, as people have been slamming Windows 8 and Xbox One all over the place.

Let's be realistic here: the Xbox One will sell, Windows 8 is already selling, and the PS4 will sell just as well. Why we need all this doom and gloom is beyond me. :ermm:

im not dooming and glooming. im giving an explanation why the "demand exceeding supply" trick is a pr gimmick. I said companies don't go start throwing cash and building as many boxes as they can,especially companies like sony who are doing very bad financially. does it make sense that a company, that has to sell 5 billion dollars in assets but only comes out with 500 million dollars profit in the end, can and has the means to mass produce a product that may or may not sell? can they risk and afford that? .

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I think we all know this is a PR stunt, it's a tactic used by loads of companies. I'd argue the Wii was guilty of this when it was released.

We all know Sony is in trouble, I may be wrong but I'm sure by the electronics arm analysts are talking about Sony's TV's etc which have been a major drain on them for quite a while now, and there were whispers that Sony were considering selling it off to try and return the company to profitability. It has got a lot better under Kaz Hirai, no doubt because of the ruthlessness of the cost raising that has been happening at Sony.

I'm sure Sony will be becoming aware now though that the PS4 is most likely going to sell very well initially.

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"demand" - undefined

"may" - weasel word

"supply" - undefined

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im not dooming and glooming. im giving an explanation why the "demand exceeding supply" trick is a pr gimmick. I said companies don't go start throwing cash and building as many boxes as they can,especially companies like sony who are doing very bad financially. does it make sense that a company, that has to sell 5 billion dollars in assets but only comes out with 500 million dollars profit in the end, can and has the means to mass produce a product that may or may not sell? can they risk and afford that? .

First, you should understand that just because a company is losing money, does not mean they will not invest in whatever manufacturing necessary to ensure their next major product will be successful. They must have spent hundreds of millions developing the ps4, and spending a few hundred more to build a proper production line hardly that expensive whether they lose $1 billion or $10 billion.

Second, Sony is divided into two major divisions: electronics and entertainment. As you mentioned, the electronics division is the one that is having some cost control issues in some of their declining products. But ps4 falls under the entertainment division, which is highly profitable, and the playstation division itself has always been profitable in the long run.

So there is no correlation between how much profit/loss the company has and how much resources Sony will put towards ensuring the most maximum supply they get by the holidays. You can't expect them to build five productions lines just for the initial release, but they definitely will be pushing them out at best cost efficiency possible. It just simply stands that the demand from a worldwide launch will make ps4 a rare commodity during the first few months.

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You know why demand will outstrip supply?

Because they're all reliant on AMD, who is probably having manufacturing issues right now what with Temash and Kabini launches and the consoles.

(What console did it NOT outstrip supply, anyway? Heh.)

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I doubt if anyone doubts that the PS4 will sell out and be hard to find for a while after launch. It's almost always like that.

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First, you should understand that just because a company is losing money, does not mean they will not invest in whatever manufacturing necessary to ensure their next major product will be successful. They must have spent hundreds of millions developing the ps4, and spending a few hundred more to build a proper production line hardly that expensive whether they lose $1 billion or $10 billion.

 

 

 

Second, Sony is divided into two major divisions: electronics and entertainment. As you mentioned, the electronics division is the one that is having some cost control issues in some of their declining products. But ps4 falls under the entertainment division, which is highly profitable, and the playstation division itself has always been profitable in the long run.

 

So there is no correlation between how much profit/loss the company has and how much resources Sony will put towards ensuring the most maximum supply they get by the holidays. You can't expect them to build five productions lines just for the initial release, but they definitely will be pushing them out at best cost efficiency possible. It just simply stands that the demand from a worldwide launch will make ps4 a rare commodity during the first few months.

 

right... what school of business did you learn that from? if you're losing massive amounts of money,just keep doing what you're doing because fairies will sprinkle some of that fairy dust and everything will be ok.

 

and don't try to school me without even knowing what youre talking about. sony is not divided into two divisions. they have more than that. And the entertainment division that is profitable has nothing to do with playstation. that is the movie business. playstation is in the sony computer entertainment division,which is bleeding money. in fiscal 2011, this division lost 1.2 billion,and its now worse. notice how I said electronics arm, not electronics division. what I meant by that is, the arm of the company that sells consumer electronics,which includes tvs,other media and playstation.

 

and you don't think theres correlation? so when nokia had supply problems with their flagship phone,and stock was anemic for a long long time, it couldn't have been because they were in deep ###### financially. oh no,not according to you. they should have been soldiering on.

 

but right at the end there,you're basically agreeing with what I said.

 

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Well you have the majority of customers from the countries you can't buy the Xbone, some bandwagoners and your loyal Playstation fan base. Obviously, the demand will be over the supply. 

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