The Sales Cross Over: It's Real. What are the implications industry wide?

[Just_Ben]

mitsuhide said:
When companies overproduce the only thing they can do is stockpile.

Thats my point. And everything you put in stock is a loss at the moment (operational). And the only way to get rid of the stock is under producing. If Sony has more in stock for Christmas than planned, its likely they lower production this Quarter. Why keep overproducing? Especially if the production cost with be lower later (Blue Ray e.g). How many units has Sony overproduce last quarter (meaning in their stock and got no money for it)? I randomly guess 500 k? If you say averaged the production cost of one was 600$ you have easily a explanation for the loss of 300 Million. I know it has to be more, because other parts (PS2, PSP) are making profit, just want to show how fast such things can make a difference. If you expect Sony to lower production this quarter, the loss will be less, thats all I'm trying to say.