Actually the Euro started dropping end of September, so shouldn't influence this quarter's results too much. Next quarter could be worse than expected, especially for Sony who has a disproportionally big marketshare in Europe. However Q4 should be profitable, despite this.

Software sales will help SONY next quarter I guess

July to September 2.43 isn't bad assuming its sales and not shipped. I know sony said they only announce sales now but you never can tell with these companies.

Thats about 800,000 a month and keep in mind it doesn't include June sales which were epic due to the release of MGS4. Not bad sony...not bad at all

Sony reports shipped units.

Even so it's not bad. The shipments, both hard-and-software, are fine. It's the financials that are bad. PS3 should be breaking even by now, but it's not. 

This is a troubling report because there is little that Sony can do to turn things around.  The games, tv, and movie division have been performing well.  The yen is killing the big Japanese companies.  The gaming division reported that they are still on target for their annual shipment projections for hardware and software.  In fact they increased guidance on the PSP by a million imots.  From a cost perspective it must be assumed that they are brining it inline with their internal goals.  I assume this because it is not stated that costs are a factor in their loss this quarter.

To understand the impact of the yen, here are some general metrics you can use.

"Sony loses 7.5 billion yen ($77 million) in profit for each 1 yen gain against the euro, and 4 billion yen ($40 million) for each 1 yen gain against the dollar, he said."

"In the July-September quarter, the dollar averaged about 107 yen, down from 117 yen the same quarter last year. That dragged down Sony's sales and operating revenue by some 122 billion yen ($1.3 billion), according to the company."

"Bad times could continue for the maker of the Walkman portable as the yen last week soared to a 13-year high of about 91 yen to the dollar."

Based on this information the yen was at 107 versus the dollar at the end of last quarter.  It finished trading on Wednesday at 91.  That's a difference of 16 just in the most recent quarter.  For every yen gain is a 40 million dollar loss for Sony.  They lost $640 million in currency conversion alone this quarter.

Article for reference => http://biz.yahoo.com/ap/081029/as_japan_earns_sony.html

Okay Sonys game division lost another $370,000,000.

With the PSP being profitable and the PS2 being profitable, the PS3 still ruins it big time.

The loss of the PS3 just for this quarter is: 370,000,000 + wins of PSP + wins of PS2. We don't know how successfull PSP and PS2 are, but my guess is, that the PS3 loses around $500,000,000 every 3 months. PSP and PS2 will make 130 millions combined in 3 months.

The product Playstation 3 is a huge financial failure for Sony.

I respectfully request you actually READ the financial reports again before barging in here with your frankly absurd "analysis".

In particular, please direct your attention to page 6 of this report.

http://www.sony.net/SonyInfo/IR/financial/fr/08q2_sonypre.pdf

HA!  And you're spinning things negatively by not giving credit where credit is due.  Selling more systems while reducing costs, outselling some of the competition, and selling a product with good value because of the loss is all moving in a positive direction.  Now, on one is saying all is rosey because it isn't, but there is no denying that SONY is doing a good job working it's way out of the forest.

guys , don't forget the collapse of the Euro and Dollar, they really really hurt

 what do you want me to see on page six? maybe i have a brain-bug right now, but i still don't get your point.