dbot on 25 October 2008
The problem is with the LCD and financial services divisions in Sony. The gaming division actually increased their guidance on the PSP from 15 million to 16 million this fiscal year. They did not adjust the guidance on the PS3 so it looks like they are confident in the 10 million number.
The appreciation of the yen has been killing their financials. The yen problem is going to create serious problems for Japan as whole since a majority of their economy is based on exports.
I am curious why Sony doesn't think they will be able to make a profit in the gaming division this year. It is most likely because the higher value of the yen, but maybe they are planning a price cut this year to counter MS.
Thanks for the input, Jeff.
