Sony's financial report is up

[Jordahn]

tuoyo said:

Jordahn said:
It seems like the usual suspects are trying to mainly focus on the bad news to downplay any success SONY has with the PS3. The big picture is that SONY is taking a hit to provide consumers a quality product with a growing demand while taking steps to help improve what they are doing to provide that product. I'm encompassing all while some of you are are not, painting a false picture of near total negativity when this is not the case. The PS3 would be a "very very bad idea for Sony" if operation losses stay the same if not worse while the demand for the PS3 has not increased. It's opposite has happened so it's reasonable to say that an encouraging positive outlook for the PS3 is deserved.

That almost sounds like Sony is doing consumers a favour by selling a product at a loss.  The truth is that Sony miscalculated and overvalued the power of the Playstation brand.  They expected they would sell a ton at $600 which would drive down manufacturing cost so that they would start making a profit from hardware relatively quickly.  They also expected that with a ton of PS3s in customers homes they would sell a mega ton of software and with the combined profit from hardware and software they would quickly make up the initial losses.  Now it is clear that the initial losses will not be made back.  If the PS3 is not a financial disaster I don't know what is.  If they had just released a $300 console without blu ray and which wasn't trying to be a super computer they would not be in the jam they find themselves in now.

 

I don't think SONY is neccessarily doing consumers a favor.  When I first heard of the $600 PS3 pricetag, I was appalled (<- probably misspelled), but a buddy of mine demo the PS3 for me in my home.  And I've learned since then that the product is worth the money, but it doesn't mean that applies to everyone because it doesn't.  This is how I see it from a consumer's point.  Also, I do agree that SONY miscalculated the PlayStation brand, but I think that was at first.  According to SONY, they are on track for PS3 hardware sales while their projection was made before this economy crisis.  With these reasons, I think the economy is the major culprit right now for SONY's reduced profit projections.