Sony's financial report is up

[NJ5]

drkohler said:

NJ5 said:

It's really crunch time for Sony, and they will have to get leaner. What product lines this will affect is anyone's guess...

Is is crunch time for everybody, even for Microsoft. Right now they are probably praying heavily that nobody really buys their Arcade model which is the console that rakes in the biggest losses of all consoles. I don't know if Sony is still producing PS3 in Japan but that factory is certainly doomed now.. interesting times. The variable exchange rates are really unpredictable as we don't really know what currencies are involved in all the manufacturing transactions. It could go any way, even that the manufacturers in China could be holding the short end of the stick and not MS/Sony/Nintendo...

 

Talking about the companies as a whole (rather than just the gaming divisions):

Microsoft is far from being in a difficult financial position. They have everything... huge cash reserve, excellent profit margins (in the order of 30%).

Nintendo also suffers from the same problem as Sony regarding currency exchanges, but their profit margins are much better than Sony's so they'll still be making consistent profits (just lower than previously estimated).

You're right that some of the manufacturing may not be paid in Yen, but a big part of their staff is. What I'm certain of is that the currency issue is a big part of their worries (as is visible in their latest statements). The other part is of course lower consumer confidence (which doesn't seem a big problem for gaming right now).