SONY lost 3.31 Billion on initial PS3 costs; May never see that money back.

[cringer8]

talkingparrot said:
No one should expect any price cut till next year. The article written above for uneducated people in the field of stocks (myself included) can easily be led to believe something that is far from the truth.

Aside from all the massive Xbox 360 fanboys in here- someone mentioned a very important fact-


EVERYONE NEEDS TO REALIZE SOMETHING:

The report is talking about FISCAL losses. Key word- FISCAL. April 06-March 07, and FY08 is April 07-March 08.

This doesn't mean that PS3 is still being sold at a loss. All this reinforces is, at one time the PS3 was losing a ton of money and that they went from losing 2 Billion on production to 1 Billion (and that could be an average cost too, the PS3 didn't reach the break even mark till January, who knows where its at now, but I am guessing its at 350 to produce a console).

The gaming division will start seeing a profit in 2009. Both Microsoft and Sony are probably both regretting putting in a price cut, and no one can blame them. Both companies have copious amounts of money to recoup.

 

I'm not sure anyone is reading it wrong, as you imply.  It's quite clearly the past.  And one thing to note is that they mention that some of the losses involved with the hardware R&D was actually reported in a separate division from gaming.  So the actual losses were more than 3.31 billion. 

This article is only interesting for one reason.  Before, everyone was merely guessing how much money the PS3 was costing SONY.  Now we have some solid numbers.  That's all.