| BengaBenga said: To everyone in this thread that's trying to downplay the losses: SCE is supposed to make money. If things continue like this it will mean a third financial year of losses in a row. This will have a negative effect on the games that Sony will release (Eight Days, The Getaway anyone?) and on Sony's next console. The cumulative losses on the PS3 are enormous and will certainly lead to a change in strategy at SCE. |
A) Of course SCE is supposed to make money, every division of a company is. The question is one of the time horizon and whether the divisions are able (and willing) to outbalance each other. Just how long it takes for a division to achieve profitability (with a new product) and how long it has to stay profitable is a corporate management decision
B) This will have absolutely no effect on whether (insert favourite fanboy game) gets pulled or published. Software projects run over several years and once you go beyond a "point of no return" within the project, it does not get cancelled anymore (whatever the current state of an entire division is - unless it is short of bancruptcy..)
C) The cumulative losses are _not_ enormous and are certainly _not_ leading to a change of strategy at SCE given a 10 year plan. (By the way, such strategy change would come from Sony HQ as this would likely be a corporate decision). Such a decision is possible when the next quarter comes in and it is a critical quarter for SCE. They have now finalized all the redesigns of the PSP/PS2 (which cost them a ton of money hw-wise) and manufacturing costs are close to break-even for all consoles. The increase of software revenues should result in a massive profit (>$350mio) this quarter or something is (still and unrepairably) really broken inside SCE.
