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Shuhei: PS3 was losing a billion dollars and was only saved by the Sony TV sales covering the losses; the PSN outage was unbelievably hard internally

Det

Member
Why are you pretending the massive losses of the PS3 is news? And now you are suggesting Sony is cooking the books?

What is wrong with you?
It is one of the commandments of the Xbox Sect
"Never let anyone say on the Internet that the Xbox was never profitable"

Probably because it would attract the attention of shareholders who would shut down your Craigs Monkey circus.

Phill spent 12 years trying to disguise the hot garbage that the Xbox is, with its infinite losses and its Craigs Monkeys; It ended up that with the 80 billion spent on Activion, the CFO decided to analyze the Xbox accounts, got scared and ended the party.
 
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DenchDeckard

Moderated wildly
Why are you pretending the massive losses of the PS3 is news? And now you are suggesting Sony is cooking the books?

What is wrong with you?

Ive always believed that the concensus was that sony turned it around in the second half of the generation and brought the playstation business back to profit.

Was what Shu is saying common knowledge?

I dont have any recollection of Sony telling the world that ps3 nearly sank them and lost billion
 

RoboFu

One of the green rats
But the experts here told me I was wrong when I said ps3 lost a lot of money. something something... world wide consoles sold.. blah blah.
 

Topher

Identifies as young
Ive always believed that the concensus was that sony turned it around in the second half of the generation and brought the playstation business back to profit.

Was what Shu is saying common knowledge?

I dont have any recollection of Sony telling the world that ps3 nearly sank them and lost billion

Turning a proft in the second half of the generation doesn't mean they recovered all they lost. Yes, this is all common knowledge.


But the experts here told me I was wrong when I said ps3 lost a lot of money. something something... world wide consoles sold.. blah blah.

Who told you that?
 
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GHG

Member
I dont have any recollection of Sony telling the world that ps3 nearly sank them and lost billion

What on earth are you on about?

It was evident in their financial statements at the time.


iFlc5Zd.jpeg



ybtMoHR.jpeg
 

Topher

Identifies as young
It is one of the commandments of the Xbox Sect
"Never let anyone say on the Internet that the Xbox was never profitable"

Probably because it would attract the attention of shareholders who would shut down your Craigs Monkey circus.

Phill spent 12 years trying to disguise the hot garbage that the Xbox is, with its infinite losses and its Craigs Monkeys; It ended up that with the 80 billion spent on Activion, the CFO decided to analyze the Xbox accounts, got scared and ended the party.

Eh....this ain't an Xbox thread my man
 

Drew1440

Member
At that time wasn’t the tv division losing billions? So how could they cover PS3 losses if TVs were also losing money?
Sony TV's were pretty popular in the late 2000s, this was when people were migrating from CRT screens to HD flat panel displays. Didn't last long until Samsung and LG took over the market. The early 2010s were difficult for Sony, with them shutting down their VAIO computer division, and de-merging from Sony-Ericsson into the Xperia line of smartphones.
Probably because it was a unified design between them Toshiba and IBM, meaning IBM were getting the full SPU use in their products and it was probably a free way for them to host parts of PSN on consumer standby power. A dedicated server is still dedicated whether it is in your consumers console or your telecom partners buildings or your own server racks, the SPUs were hypervisored so had full autonomy
The 8th SPE was supposed to be re-used for the PS2 softemu that was used for the alter PS2 classic tiles on PSN, but I don't think it ever materialised. It can be reactivated on some of the later models using a jailbreak, but it's only useful for Linux/OtherOS.
Yup, it seems like the Reality Synthesizer was a last minute “plan B”. I remember (wish I could find it) the rumors came out that Sony was licensing something from Nvidia and everyone thought it was either not PS3 related, or else just some tech that would be included in the Cell (Ars Technica speculated this). Nobody thought they’d straight up use a Nvidia GPU in the PS3. There was even an interview with some Sony higher up where they were asked if they were using an Nvidia chip in PS3 and he said something like “no that’s ridiculous, we don’t need Nvidia’s help.” Makes me wonder if he didn’t even know about it at that time.

And they basically got a gimped GeForce 7900 with a 128 bit bus and its own pool of GDDR3, even though the Cell’s RDRAM seems like it would’ve been well suited for VRAM. Looks like a last minute panic decision, no way in hell they would’ve designed it that way if they had more time.
Yeah it was odd they used the GDDR3 for the RSX, considering it had access to the FlexIO bus and could read from its XDR RAM, at a reduced rate. I don't think the Toshiba GPU would have been any more of an improvement, considering how limited the PS2's eDRAM was for textures, and how they planned on using the same technique for the PS3.
 

jroc74

Phone reception is more important to me than human rights
Turning a proft in the second half of the generation doesn't mean they recovered all they lost. Yes, this is all common knowledge.




Who told you that?

What on earth are you on about?

It was evident in their financial statements at the time.


iFlc5Zd.jpeg



Exactly.

I am starting to give several users in this thread massive side eyes....especially if they've been hanging out in Sony financial threads over the years.

Shawn Layden also talked about it in several interviews. Also calling the PS3 Sony's Icarus moment:


I had to find the old article, because interviews from last year keep popping up on Google.

Also.....in a strange twist of fate Cell wound up being beneficial to Sony outside of consoles: (not sure if the link below works).



"Moreover, the hard-earned experience from developing the Cell/B.E. at a massive investment cost led to Sonyʼs semiconductor business capturing the worldʼs number one position in imaging applications. Applying the advanced MOS LSI technology acquired in developing the Cell/B.E. to the development of CMOS image sensors helped them achieve their superior position. In terms of human resources, system LSI, network and other engineers rapidly cultivated technological skills while Sony brought together hundreds of highly specialized human resources from outside the company.

In 2015, for production bases of the semiconductor business, which had undergone restructuring in 2011, Sony announced a program to strengthen development and production of image sensors. Under the third mid-range plan, announced in 2018, Sony intends to maintain its number one position in imaging and become the global leader in sensing, both in the CMOS image sensor area.

In these ways, the development of the PlayStation® business has led to growth that leveraged Sonyʼs business diversity and generated substantial value for other businesses. Sony will continue to take on the challenge of creating products, services and platforms that achieve even greater appeal."
 

Puscifer

Member
That entire generation was a financial loss for both companies tbh. I recall the RROD incident also costing M$ billions to address. Only Nintendo came out unscathed and even then, their choices that gen ultimately led to the Wii U disaster.

Still love it though, we got some killer games despite that.


I'd argue the choice of GPU was more problematic. It was dogshit hardware for '06 and the 360s GPU beat it in most areas.

It also exacerbated CELLs issues. Even developers who were well versed in the CELL architecture were forced to use part of its capabilities to assist the GPU.
And in doing so created the best looking games that generation. There were certain techniques that took till DX11 to match what Sonys graphics API was doing in combination with GL.
 

Boss Mog

Member
I am one of those people who loved and gamed mostly on the 360 and then made the switch to PS4 and never looked back. It still baffles me to this day that a big company like MS was able to destroy everything they built with the 360.
 

Fafalada

Fafracer forever
Resolution recosntruction would have been great since the PS3 lacked a hardware upscaler for some reason.
Tbf hardware upscaler didn't do anything that GPUs couldn't do basically for free - it was just a convenience for titles to target a single resolution without extra hoops (and save some memory for upscale). Flipside is that PS3 had quality/performance modes in many titles some 15 years before it was cool or press even deemed to report on it.
In fairness - 360 had some too - just - not as often because of the upscaler.

But temporal reconstruction would have been a game changer for IQ of that generation - reminder that most common output was cheap post-process spatial AA with 600-720p resolutions on both consoles.
 
Makes complete sense why that Warhawk demo is so effing funny.

Dude is sweating bullets trying to land the ship and only succeeded because the ship clipped through the platform.

PS3 is so damn baller. Launch was a disaster but it truly is a GOAT-tier entertainment device and the library of games is incredible. Outside of 4K/HDR, the PS3 is still a better media device than the PS4/PS5.
 
I remember working with in market research the PS3 launch and at $999 AID, it was struggling hard. Wasn’t until they bundled it with literally every Bravia TV that it seemingly started getting traction as people started offloading them for half price on eBay.
 

Spiral1407

Member
The 8th SPE was supposed to be re-used for the PS2 softemu that was used for the alter PS2 classic tiles on PSN, but I don't think it ever materialised. It can be reactivated on some of the later models using a jailbreak, but it's only useful for Linux/OtherOS.

Yeah it was odd they used the GDDR3 for the RSX, considering it had access to the FlexIO bus and could read from its XDR RAM, at a reduced rate. I don't think the Toshiba GPU would have been any more of an improvement, considering how limited the PS2's eDRAM was for textures, and how they planned on using the same technique for the PS3.
I'm not sure if reactivating the 8th SPE for that was feasible. Afaik, the current hypervisor completely ignores the 8th SPE and lv0 is unfortunately still loaded while in BC mode. There's also the fact that Sony wouldn't know which SPEs worked correctly, meaning support for that software emulator would be spotty at best (especially in non-bc phats).

The Toshiba GPU could totally work if they limited what the eDRAM could be used for like 360, while also offering enough of it to fit a full framebuffer without tiling.
Tbf hardware upscaler didn't do anything that GPUs couldn't do basically for free - it was just a convenience for titles to target a single resolution without extra hoops (and save some memory for upscale). Flipside is that PS3 had quality/performance modes in many titles some 15 years before it was cool or press even deemed to report on it.
In fairness - 360 had some too - just - not as often because of the upscaler.
That's the problem. Memory was VERY tight on PS3, especially with the OS taking up a huge chunk of it initially. Every little bit counts and having hardware that could do more than just horizontal scaling would be very beneficial. There's also the problem of some developer implementations not being up to snuff. Sonic Unleashed looks noticeably worse on my PS3 than my 360 despite them both outputting at 1080p. Apparently, the PS3 version even runs worse with 1080p seleced on the XMB.
 
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yurinka

Member
Yes, the PS3 generation generated $4B in loses. The Jim Ryan + Hermen Hulst generation instead generated until last fiscal year $10B in profits. And counting, PS5 is only in the middle of the generation.

https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F331f6809-fc4d-4e8c-99dc-5cf93d7e0d10_1280x657.jpeg
 
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DeepEnigma

Gold Member
Why are you pretending the massive losses of the PS3 is news? And now you are suggesting Sony is cooking the books?

What is wrong with you?
It was pretty well known that they were losing money on it. They even had it out in the open and in the red for a while in their financial reports. Which started the whole "Sony Doomed™."

This revisionism is wild. Wildly projective.
 
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OuterLimits

Member
I always assumed it was their insurance revenue that kept them afloat as PlayStation was taking huge losses during PS3 years. Didn't know their TV were doing so well.
 

Loomy

Thinks Microaggressions are Real
It was pretty well known that they were losing money on it. They even had it out in the open and in the red for a while in their financial reports. Which started the whole "Sony Doomed™."

This revisionism is wild. Wildly projective.
I always have to remind myself that there are kids among us. Or people who weren't old enough to remember the legit doom and gloom of the days they're claiming to be nostalgic about. Sony as a whole was in deep deep shit for most of the PS3 era. But a lot of people look at the last 2-3 years of the PS3 era and the stellar output and think the entire gen was like that.

Yeah. Clearly the numbers Sony have shared, convincing their fans that they are highly successful are bullshit.

Doesn't surprise me that they say they need to increase margins. They are probably still fudging the numbers to hide the real facts.
You are describing criminal activities.

Sony lost the TV business to LG and Samsung.

Pretty sad really they invented the LCD TV.
Also made the first OLED TV.

The only reason they lost market share is because of price. Sony still makes some of the best TVs on the market. They really need a budget segment in their TV lineup.
 
Many of us were here on this site and can remember. Many know Sony was on the ropes coming into the ps4 era. That’s why you could walk into a store and buy one on launch unlike the ps2 and ps3 launches. The PlayStation brand was greatly impacted during the ps3 era. The Cell was the worse decision the company made. Of course now if it wasn’t for the PlayStation, Sony probably wouldnt be around either now. 😂
 
The Brand was bleeding money, I reckon they only started to make some profit after the PS3 released and the games started to get traction and sales, but they ended losing $4Bn in the making due to some nefarious decisions.

Ironically, the PS4 saved Playstation and Playstation saved AMD.
 

DenchDeckard

Moderated wildly
Turning a proft in the second half of the generation doesn't mean they recovered all they lost. Yes, this is all common knowledge.




Who told you that?

What on earth are you on about?

It was evident in their financial statements at the time.


iFlc5Zd.jpeg



ybtMoHR.jpeg

Cheers guys. Can't remember this stuff. I was in the thought that they'd turned it around completely in the end and it was only Xbox that lost tons of money due to RROD.
 

Topher

Identifies as young
Yeah. Clearly the numbers Sony have shared, convincing their fans that they are highly successful are bullshit.

Doesn't surprise me that they say they need to increase margins. They are probably still fudging the numbers to hide the real facts.
Can't remember this stuff.

If only there was a resource people could use before posting nonsense.

Blogging Fairly Odd Parents GIF
 
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BlackTron

Member
"Up to PS3, the system was already designed. Even our first-party development teams were notified after the fact. One day we were told, 'The next controller has a motion sensor.' What? They asked us to create a demo a week before E3. Make a demo with this motion sensor. They kept everything secret. I couldn’t believe they did that. The Warhawk team did it, and Ken loved it. But that was the relationship. It was like the Great Wall of China."


Interesting glimpse into how the different philosophies at Sony and Nintendo result in differing products. Nintendo hardware was married to software ideas. It's almost by natural progression that one became a first party box and the other a third party one.

Pros and cons. In Nintendo's case they might have had more hardware designs that didn't seem so wacky to third parties, because the controller wouldn't be too tailored to one game by their most decorated developer. In Sony's case, maybe someone would have told them not to try making a PS3 with two Cell processors a little earlier, leading to a more successful fight against 360 without such severe losses.
 

DenchDeckard

Moderated wildly
If only there was a resource people could use before posting nonsense.

Blogging Fairly Odd Parents GIF

I like to make takes while the news is hot based on the evidence in front of me. Then if I get corrected I then take the information on board better.

It's odd. I've probably read this info and forgotten it. Like I said I thought it was only ms that lost loads due to rrod
 

BlackTron

Member
Cheers guys. Can't remember this stuff. I was in the thought that they'd turned it around completely in the end and it was only Xbox that lost tons of money due to RROD.

This was when MS actually did try to spend Sony out of business. First Xbox was never planned to make money, just to get their foot in. 360 had rrod but unlike Sony they could simply tank a mistake like that.

For Sony cash is existential, but MS's main goal at the time was just to take away Sony's lunch, even if they weren't going to eat it.
 

Vaquilla

Member
PS3 is possibly my favourite Playstation, but yeah financially it was a disaster, taking them from completely dominating the market to barely scraping out of last place.

Still, we got some great games out of it.
 

notseqi

Gold Member
Man with what you guys stated here this sounds like a massive project including decision-making by 20+ companies on play at all times and all the failures this brings, made by one single company. Amazing.
 

Turrican

Member
the GPU choice was a direct symptom of the focus on the Cell.

they originally wanted to use 2 Cell processors, one for CPU tasks and one for GPU tasks.
then their internal studios basically told them that they are fucking crazy and that this would result in a PS2 HD instead of an actual next gen capable system.

that late into the development they then had to quickly get a GPU deal, and Nvidia "came to the rescue".


you could still see the aftermath of the original concept with the Cell as a GPU in early trailers. like the first couple of seconds of gameplay they showed of Resistance for example looked legit worse than og Xbox titles.
the final game also didn't look that much better than an og Xbox game running in HD, but they did the best they could to reconcile the hardware issues I think.


Microsoft made the right choice by looking at the best GPU they could get (an ATi GPU that was almost a year ahead of PC tech in fact) and telling IBM that they only want the main CPU core of the Cell in a tri-core configuration to have a simple setup for devs.
It wasn’t their internal studios. The key person behind abandoning Cell as a GPU was Cerny. He had the task of writing the software GPU pipeline and while getting somewhat OK numbers of simple and gouraud-shaded polygons the moment he tried to do anything resembling complex shaders involving normal maps etc. the performances was abysmal. Insomniac did early Resistance art based on Mark’s estimations at the time until it became clear to everyone involved that this would not work.
 

Fafalada

Fafracer forever
The Toshiba GPU could totally work if they limited what the eDRAM could be used for like 360, while also offering enough of it to fit a full framebuffer without tiling.
The original design was supposed to be 64MB eDram on the GPU and 128 on the Cell (no physical memory chips were planned at first). That's back when 360 was a 256MB machine also though - but yea they've basically designed a deferred shading accelerator with that thing. It would have been - interesting - to see results had those early machines came to pass...

That's the problem. Memory was VERY tight on PS3, especially with the OS taking up a huge chunk of it initially. Every little bit counts and having hardware that could do more than just horizontal scaling would be very beneficial.
That's overstating things - if game ran at 720p and upscaled to 1080p - you lost about 4MB of memory. In the end, every bit of memory matters in a console, yes - but it wasn't some large premium, we're talking 0.8% of ram available. And indeed that's why some games upscaled to 1080 vertical and let the upscaler do the rest (so getting further 2MB back).
I think the fact lots of games actually opted for native resolutions (giving perf/quality modes) was more interesting - and later in the gen that only became more common on the 360 as well. Obviously that had far larger memory ramifications - and plenty of software juggled it just fine on both consoles.

There's also the problem of some developer implementations not being up to snuff. Sonic Unleashed looks noticeably worse on my PS3 than my 360 despite them both outputting at 1080p. Apparently, the PS3 version even runs worse with 1080p selected on the XMB.
That also wasn't PS3 exclusive. 360 upscaler had a broken gamma, and it was also programmable, where results varied from game to game. And the games running differently at different resolution was the result of not simply upscaling as I mention above - lots of software did this by late in the gen, including titles that specifically did 30fps 1080p and 60fps 720p tagets.
But indeed - on PS3 there were some games doing this from day 1 - and sometimes HD modes were rather broken - there was that Marvel game I remember in particular...
 
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kevboard

Member
It wasn’t their internal studios. The key person behind abandoning Cell as a GPU was Cerny. He had the task of writing the software GPU pipeline and while getting somewhat OK numbers of simple and gouraud-shaded polygons the moment he tried to do anything resembling complex shaders involving normal maps etc. the performances was abysmal. Insomniac did early Resistance art based on Mark’s estimations at the time until it became clear to everyone involved that this would not work.

he did assist Insomniac tho didn't he? I guess that's why I remember it being Insomniac and other studios showing that they barely can get passed PS2 graphics on a Cell
 

yogaflame

Member
The cell is a great piece of technology even at todays standard. Even medical field use cell processor and it was banned to be exported to China due to military implication that tech might be stolen. To and many developers especially from third party complained so much about it even if 1st and 2nd party are amazing with the cell processor. I hope for its comeback on ps6, maybe a hybrid with AMD Zen. This will really help especially the PSSR ML.
 

ReBurn

Gold Member
The cell is a great piece of technology even at todays standard. Even medical field use cell processor and it was banned to be exported to China due to military implication that tech might be stolen. To and many developers especially from third party complained so much about it even if 1st and 2nd party are amazing with the cell processor. I hope for its comeback on ps6, maybe a hybrid with AMD Zen. This will really help especially the PSSR ML.
It's not that great compared to today's standards. The way modern multi-core, multi-threaded processors work is way more efficient than what Cell tried to do. It had a raw floating point calculation advantage over PC processors at the time, but it was way less versatile and not well suited for the direction CPU's were going overall. That's why it never made it out of specialized applications.

Sony is much better off in the future relying on PC hardware tech than using a custom RISC CPU like Cell. Cell is probably best left to museums and technology history books.
 

Fafalada

Fafracer forever
Yeah it was odd they used the GDDR3 for the RSX, considering it had access to the FlexIO bus and could read from its XDR RAM, at a reduced rate.
It wasn't reduced for the RSX(22 gb or so measured, which lines up to paper spec about as well as most mem subsystems), latency was worse though so using it for writes was less than ideal. But you could texture from it perfectly fine.
Being so late probably limited options in changing the vram side to anything else.

I don't think the Toshiba GPU would have been any more of an improvement
That depends on perspective, it would have been massively faster at deferred shading workloads, and with entire system running on eDram... but PC ports would get more cumbersome.
In a world we ended up in, where consoles are mini pcs, deviations like that would be seen as net negative, but it's not black and white.
 
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yogaflame

Member
It's not that great compared to today's standards. The way modern multi-core, multi-threaded processors work is way more efficient than what Cell tried to do. It had a raw floating point calculation advantage over PC processors at the time, but it was way less versatile and not well suited for the direction CPU's were going overall. That's why it never made it out of specialized applications.

Sony is much better off in the future relying on PC hardware tech than using a custom RISC CPU like Cell. Cell is probably best left to museums and technology history books.
Well cell can still have its practical use in medical field, data server, data mining, networking, and military. But for me, im still more impress with cell technology.
 

Alan Wake

Member
Since Vaio is no longer there and Sony are virtually not selling TV's and phones anymore and PlayStation being such a big part of their success as a company right now, one just have to wonder how they would cope with a PS6 flop. Not that it's likely to happen, but still.
 
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