kowenicki said:
Train wreck said:
kowenicki said:
found this in the accounts: FY forecast: Game
Primarily due to the lowering of the annual unit sales forecast for portable hardware, sales are expected to be significantly lower than the May forecast. Due to the above-mentioned decrease in sales and the impact of unfavorable exchange rates, operating income is expected to be significantly below the May forecast. Sales are expected to be essentially flat and operating income is expected to decrease significantly year-on-year.
So they expect no change ion revenue in come but a massive drop in any operaring income and as a result any potential profits.
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Makes sense with the upcoming ps3 and vita price drops, the volume sold will be higher but since they are selling for less, less operating income.
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Higher? how so?
They will be lower. Read the first sentence. They will selling less at a lower net revenue per item.
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Well if Sony dropped the price from $249 to say $169 for a ps3 for example.
@ $249 they sold 1 million ps3's, thats 249 million dollars in sales
@ $169 they sold 1.5 million ps3's, thast 250 million dollars in sales
Sales are essentially flat, the volume of ps3 sold is higher at its lower price (1.5m v 1m) but operating income is less ince they are selling at a lower price (249 vs 169)