COMPARE:
Actual Sony reported numbers, with the same profit assumptions:
PS2 HW = 1.51 million @ $10(*) net profit = $15.1(*)
PSP HW = 3.72 million @ $8(*) net profit = $29.8(*)
PS3 HW = 1.56 million @ loss of $60(*) per unit = $93.6(*) LOSS
PS2 SW = 19.3 million @ $2(*) profit = $38.6(*)
PSP SW = 11.8 million @ $2(*) profit = $23.6(*)
PS3 SW = 22.8 million @ $2(*) profit = $45.6(*)
TOTAL PROFIT = $59.1(*) million - AS PER FINANCIAL MODEL
Actual Sony Reported Profit = $51 million
Difference/Variance = 8.1 million or 16%
While the results have a fairly significant variance of 16%, the actual dollar amount is relative small at 8 million.
I think the model works pretty well in predicting Sony Game products' profitability.







