Sony FY 2008 Q2 Results – Analysis – SONY BLEEDING – LOOKING BAD

[drkohler]

BengaBenga said:

bumidan said:
the big thing is the structural deficit.

that is assuming the PS3 is almost BREAKING EVEN on hardware already....

I think PS2 and PSP hardware make at least $10 profit, PS2 probably much more. Retail price is $120 for an 8 year old console. I wouldn't be surprised if it made $75 per console.

bumidan is very likely correct in his assumptions when one compares the last two quarterly results from Sony. The last quarter showed a big deficit increase which can be attributed to structural problems or some unknown variable pulling down the resutls.

BengaBenga is almost certainly wrong in a big way. Remember the big outcries when Sony cut out PS2 compatibility off the PS3 and announced a major cost savings? I've seen several reports that claim almost $100 manufacturing savings by removing backward compatibility. Removing backward compatibility essentially meant removing the two PS2 chips - so if those chips are worth $100 according to some opinions, then a complete PS2 would cost over $150 to manufacture... I'd guess the manufacturing costs of the two PS2 chips are around $50, so a complete PS2 could cost around $100 to manufacture. And the manufacturing costs are actually _rising_ right now, not declining due to exchange rates and massive increases in shipping costs (particularly to Europe if you read the news lately).

So, at this time, as far as manufacturing is concerned, Sony very likelyy:

-loses money on PS2 (and possibly on PSP as well)

-barely breaks even on PS3 (if PAL > NA and Jap <<< PAL,NA)