@FishyJoe - Haha, sure it makes sense. Actually wait... what's the very opposite of makes sense... oh: makes absolutely no sense.
It's like ceres was saying above, Sony loses more money on consoles they don't sell; once a console is made, they've paid for it. Period. Not selling it means they can't even put that $600 against the manufacturing costs, not to mention that it gives Sony a smaller install base from which to sell the software that is supposed to cover the remaining hardware manufacturing costs and after that start making the company some actual profit. God, I feel like I'm taking crazy pills.
From the article: "The PS3 'sales figure was somewhat weaker than our target but we still believe that the main battle is still ahead of us,' Sony's chief financial officer, Nobuyuki Oneda, told reporters."
I like the word "somewhat" in there. It's cute. If that .7 mil figure is anywhere near their target, they need to get a better target. He's right about the battle still being ahead, though.
"'Sales of the PS3 have risen but we booked losses due to our strategic decision to price it below the (production) cost,' said Oneda."
I've always seen it written as a "strategic decision," not just a "decision." Again, cute. In what sense was it a "strategic" decision to sell the PS3 below its production cost? Who would have paid for a PS3 if it was priced such that Sony was making a profit off each individual console? Anyone want to pay $1000+ for a PS3? Or was it "strategic" in the sense that they planned on selling more consoles at that "lower" price and thereby secure a larger install base from which to make their profit on software. If so, remind me why its good that they've sold less hardware.
"'We will see more game titles as we head into the Christmas season. Software developers will continue to use the PS3 as an important platform to which they are committed,' said Oneda."
You're kidding, you mean you plan to have MORE PS3 games come out in the future? My faith is restored. Also, what inherently makes the PS3 "an important platform"? And if 3rd parties jumping ship is a sign of commitment to the platform, everything I know is wrong.
Yeah, overall I'd say this is more hilarious than stupid.
"Whenever you find a man who says he doesn't believe in a real Right and Wrong, you will find the same man going back on this a moment later." -C.S. Lewis
"We all make choices... but in the end, our choices... make us." -Andrew Ryan, Bioshock
Prediction: Wii passes 360 in US between July - September 2008. (Wii supply will be the issue to watch, and barring any freak incidents between now and then as well.) - 6/5/08; Wow, came true even earlier. Wii is a monster.
