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bumidan on 29 July 2008
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EaglesEye379 said:

I think you have put a lot of thought into these analyses and, although we will never know the exact margin per HW/SW unit, youve done well.

Basically this gives more evidence that PS2/PSP profits are paying for the PS3 hardware business and they are in a race of cost reduction. Thats why I think 2009 will be the first real test of the PS3 business as I believe that the PS2 will have its last hurrah this Christmas. For the PSP, third party developers are jumping ship so I dont know how its going to look next year. Sony must be finding ways to tie the PSP functionality to the PS3 and stepping up first party development alot.

It would be interesting to see next quarter.  I think if you compare Q1 this year to last year, both quarters made money.

However Q2 last year lost money, mainly due to selling much more PS3s compared to the previous quarter.  So if Sony sells more PS3s next quarter compared to the 1.56million this quarter, it may turn out that they lose money.

So next quarter:

PS2 HW - profit down

PSP HW - sales up

PS3 HW - sales up most likely

PS2 SW - profit down

PSP SW - consistent - about the same

PS3 SW - sales up

It would be interesting to see if PS3 HW cost reductions and PS3 SW will be enough to offset the lower profit of PS2 - which is definitely possible.

Note, I think last Q2, Sony lost US$34 million.