Not even a hint of anything positive in that article...does ML believe that production costs will never go down or something? It seems like they have nothing positive to say about Sony, nothing. Everything's negative...they don't even give them a chance, it's starting to sound like they have an agenda...
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Merrill Lynch says: PS3 will KILL Sony - Huge costs for MASSIVE DAMAGE.
- Thread starter sonycowboy
- Start date
Reminds me of this thread: http://www.neogaf.com/forum/showthread.php?t=101050
Smiles and Cries
Member
fortified_concept said:
When you put it that way I wonder whos ****ing Idea this was?
Can't they break even on Software Sales?
Parmenides
Banned
rage1973 said:
I´m a economist and I don´t care about Sony.I´m not buying the PS3.But,ML...they don´t know what they´re talking about.Also Mr Patcher doesn´t know what´s going on.You should know that Sony´s ADR has been doing pretty well since 11/11/2005.Actually ADR´s are up 17% .So ML forecast doesn´t meet market consensus.
Anyway a monkey could beat analysts .Random walK FTW.
No,PS3 won´t kill Sony.But if Wii (or 360) sells 500 million units maybe Sony would kill the PS3
http://quotes.nasdaq.com/quote.dll?...&index=&drilldown=off&symbol=SNE&selected=SNE
fortified_concept
Banned
maxmars said:
Ummm HyperionX already explained what exactly happened and how they're wrong. Selective reading much?
Mark Gonzales
Banned
Who Cares. This game is going to own...
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
Mark Gonzales said:Who Cares. This game is going to own...
What game is that?
Moderation Unlimited
Banned
mckmas8808 said:
Fatal Inertia.
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
Moderation Unlimited said:
Nice!
My Arms Your Hearse
Banned
Err, some people in this thread are hopeless.
Because manufacturing all those PS3s and NOT selling them is so much better than making up a substantial portion of the production cost! Big lines and consumer interest = mega bucks in the future (or that is the plan, at least).
Because manufacturing all those PS3s and NOT selling them is so much better than making up a substantial portion of the production cost! Big lines and consumer interest = mega bucks in the future (or that is the plan, at least).
HyperionX said:
link please... to the current cost of the PS3's Bluray drive. Or are you talking out of your ass too? Everyone is speculating at this point, Sony is the only one that knows for sure and they aren't talking.
ML is certainly biased - they are investors, and look at the financial side of the story. As a gamer you may look at the PS3 as an almost guaranteed success, the financial side of things are not so clear. The PS3 could "succeed" and win #1 in all markets and still loose Sony a ton of money simply because there is more competition now and it will be near impossible for them to match the PS2's success. Video Games is a very rough, competitive business where it is quite possible to loose a few Billion dollars (just as MS). ML advises many, many Billions of investment dollars, they would be doing their clients a disservice not to address these type of things simply because the PS3 seems like it will be a cool game machine.
Doom_Bringer
Banned
Fatal Inertia Looks pretty ****ing awesome, haters get bent!
It uses Speedtree just like Oblivion, GoW and Resistance! LOL right?
It uses Speedtree just like Oblivion, GoW and Resistance! LOL right?
davepoobond
you can't put a price on sparks
Fight for Freeform said:
sure worked for PSP, i suppose.
You do understand the Sony's situation. While analysts tend to go too much to the extremes (no, Sony will not be kicked out of the market in this generation, be sure of it), it is true that they might take a big blow, way bigger than the one that Nintendo took with the Gamecube, not in terms of raw sales, but profit, market & mindshare.
And completely agree with Sony not being the same Sony of the 90s. However, this is why there are still people that supports them: they still think that this is the same Sony that gave birth to the walkman and PS1. While technically true, thing is that the nowadays Sony has little to do with the Sony of its "golden era".
gutter_trash
Banned
+ 1st party software sales
+accesories
+downloadble content
+microtransatctions
= breaking even
yeah yeah, Microsoft lost money on Xbox1, heard this all before. But Sony`s 1st party software size is considerably larger then MS`s 1st party software size.
+ with Playstaytion Online, Sony can make tons of money selling old PS1, PS2 games downloadable online
+accesories
+downloadble content
+microtransatctions
= breaking even
yeah yeah, Microsoft lost money on Xbox1, heard this all before. But Sony`s 1st party software size is considerably larger then MS`s 1st party software size.
+ with Playstaytion Online, Sony can make tons of money selling old PS1, PS2 games downloadable online
Sony's stock performance is on par with most of Japanese stock market judging by 1 year return to most of Japan market ETFs. Also You do realize that ML's report is on future earnings and now how the stock has done in the past? Their stock could have gone up 10000% in the past year but it doesn't determine on how their stock will perform in the future.Parmenides said:
Neodiablo22
Member
Merrill Lynch (MER), perhaps the biggest Sony (SNE) hater
Don't hate the player hate the game.
Don't hate the player hate the game.
gutter_trash
Banned
don`t forget the $$$ keep rolling in with all those PS2 slims being sold like pancakes
painful fart
Member
Which means that they are biased in the direction where their funds an clients have their investments. And by releasing their predictions to the public after they made their investment they affect the market in the direction they want. And before anyone can call their cards, they've already secured some profits.VALIS said:
They win, we lose. Always have been, always will be. Merrill Lynch is no charity organisation. It's just scam at a grand scale, just like Enron, but if you just do it clever enough, you get away with it.
Here's the scary part if the predictions are true. -6.3B / 5 years = -1.26B per year. Last year, Sony only made 1.07B in profits. If number stay the same, they would be -190M total the following year year. Wow. CELL + BR are huge gamble for Sony.
While, M$ continues to make +9B in profits every year.
While, M$ continues to make +9B in profits every year.
Ynos Yrros
Banned
Flashback, 2005: Merrill Lynch says: PS3 to cost 900$, 1000$ to produce.
Ynos Yrros
Banned
How is 499$ doble of 399$?f_elz said:
fortified_concept
Banned
Ynos Yrros said:
It's special math you'll only learn in teamxbox and OA.
edit
f_elz said:
:lol
Moderation Unlimited
Banned
f_elz said:
That's not necessarily the case...but I know someone that is overtly biased...
HyperionX said:
the link to ML report won't work in the above web page
here are the links to 2 ML reports
ML Report 2005.11.02
PS3 est. cost at launch $495
http://webpages.charter.net/spartan85/ML_Consoles.pdf
ML Report 2006.02.17
PS3 est. cost at launch $800
http://blogger.flexchamp.com/nxgaming/media/ps3-analyse-merryll-lynch.pdf
ML has another Sony Business Model Simulation in this issue of Weekly Diamond in Sep 2006
i remember ML again predicted Sony would suffer a huge loss in the first 5 yr as well
Zaptruder said:
Making your own components doesn't guarantee costs will fall harder than if they don't.
There are actually adverse effects to it: quality of the components might not be up to standard as there is no supplier competition (and thus no incentive to be so or to work hard) and those even though those components are sought in house they will probably be through transactions whereby the price the PS3 section (entertainment?) pays is still higher than what they cost to make as the division they are sourced from still needs to make a profit.
And it could just plum be that another company is more efficient and able to supply those components at a cheaper cost. Tying yourself to inhouse stops this.
Making your own components can be a misnomer in the grand scheme of things.
PistolGrip
sex vacation in Guam
Sony to become the next MS in gaming?
That's pretty pesimistic on ML part. Will hardcore gaming become a unprofitable business?
That's pretty pesimistic on ML part. Will hardcore gaming become a unprofitable business?
HocusPocus
Member
TheProfessor said:
I believe Microsoft is on course to make money soon. So it's not an unprofitable venture if you have a good business plan. Microsoft's original Xbox one wasn't, and it appears the PS3 one is following suit.
Funny comment, funny thread. Time will tell. Although I can't tell why anyone would care if Sony did die/get ****ed over on PS3. Just giving me access to the PS3+PSP is a worthy enough cause for them to go out on. I'm certainly not crying because I'm getting the coolest electronics at an unstably low price.
HocusPocus said:I believe Microsoft is on course to make money soon. So it's not an unprofitable venture if you have a good business plan. Microsoft's original Xbox one wasn't, and it appears the PS3 one is following suit.
MS's Xbox360 sales is still after the PS2
And MS is going to launch a new handheld later.
This might not be profitable until a couple of years later.
davepoobond
you can't put a price on sparks
steinmc said:
100k, like Sony said.