Would a PS3 price cut do it?

[HappySqurriel]

Stromprophet said: You know Sony is profitable as a company, Sony Pictures, Sony Financing, Sony Electronics, and Sony Gaming. Just like Microsoft they can afford to take massive losses cause they are a massive company. Microsoft lost 4 Billion dollars after all software sales and hardware sales on the original Xbox, that certainly didn't disaude them.

Sony is a profitable company but look at their financial statment as of March 31st 2006: http://www.sony.net/SonyInfo/IR/financial/ar/2006/qfhh7c00000aksvu-att/qfhh7c00000aksx9.pdf The problem is that Sony isn't all that profitable and the Gaming Division (Sony's Golden-Egg laying goose) is going to start to bleed money because of poor sales of the PS3 and PSP. Sony is not in a good position this year because it is likely that Electronics (from the exploding batteries) will likely lose money, gaming (from the start up costs of the PS3) will likely lose money and these losses may not be offset by the profits in all other divisions combined. March 31st will be interesting because Sony will either announce they're losing money or just barely making a profit.