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Forums - Sales Discussion - SONY LOSSES, especially PS3 – New & Improved Analysis - End Mar 2008

I don't understand this thread. You're trying to allocate various losses of Sony to specific platforms from VGC numbers and Sony's financial reports? How is it you come up with "losses per PS3" when the loss attributed to each PS3 sold is not even covered in the report? Everything from hardware costs, to employee salaries, to electric bills go into figuring the loss, and nothing is attributed to a particular hardware product for that reason.

Sony's game division posted a > 5mil profit this quarter, it looks, despite losing the supposed 10 zillion per console claimed here, and despite the mere $2 per software unit sold claim. I don't see how its mathematically possible for these numbers to be drawn up from the claimed sources, especially since everything from manufacturing a game on BD, as opposed to DVD, to the differences in UMD vs DVD production go into it.

On top of that, Sony *pays itself* to do a ton of work -- Sony Disc Manufacturing gets most of the money that Sony Computer Entertainment spends on manufacturing costs, for example. That shows as a "loss" for the game division, and "income" for disc manufacturing division, biasing the real profits of game making, if you're ignorant of that fact, amongst many others. I don't believe you can draw these kinds of conclusions (loss per unit hardware X, Y, or Z, or profit per unit software for hardware X, Y, or Z, etc.) about the game division's profitability from the few numbers given in your sources.

I don't mean to knock your hard work here, bumidan. It's an admirable effort. But... I think you're drawing way too many conclusions, from way too little data.



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bumidan said:

To All:

Thank you for reading and commenting on this thread.  I have now posted a follow up thread for Sony FY End Mar 2009.  It is titled:

SONY FY END MAR 2009 – PROJECTIONS – PS3 STILL LOSING MONEY BUT DIVISION PROFITABLE

Please continue to post in this thread if you have any relevant comments about this topic.

 

Cheers.

This is all nice and stuff, but SCE is already making a profit as we speak. read post on mainpage. And I only expect these numbers to get higher and SCE will make more profit.

 



@mifely
Based on the previous numbers, this was my original prediction for FY end Mar 2009

http://www.vgchartz.com/forum/thread.php?start=0&id=32610

I predicted that Sony will make a US$290 million profit.

Q1 numbers are out, I think they made $54 million, but haven't checked it yet.

But decline in PS2 is pretty steep though. So probably have to tweak some more.

Again, just to reiterate, my point is to create some sort of financial model to predict profitability - given a prediction in "sales".

I will post tomorrow for further analysis.



MagicalJoker said:
bumidan said:

To All:

Thank you for reading and commenting on this thread.  I have now posted a follow up thread for Sony FY End Mar 2009.  It is titled:

SONY FY END MAR 2009 – PROJECTIONS – PS3 STILL LOSING MONEY BUT DIVISION PROFITABLE

Please continue to post in this thread if you have any relevant comments about this topic.

 

Cheers.

This is all nice and stuff, but SCE is already making a profit as we speak. read post on mainpage. And I only expect these numbers to get higher and SCE will make more profit.

 

Yes, as per the prediction, it will be profitable.

 



Shanobi said:
Excellent thread, thank you for putting this together!

 

 ditto.  good post.



"Let justice be done though the heavens fall." - Jim Garrison

"Ask not your horse, if ye should ride into battle" - myself

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this model is a bit outdated, seeing as Sony sold less PS3s than what I originally thought in FY end Mar 2007.

Anyway, will incorporate it in the next model.