The present and future of Sony

[amirnetz]

DMeisterJ said:
lol?

Sony will be fine. This financial crisis will blow over, and it will be back to normal in the recent future. Sony isn't going anywhere, and isn't in any position to go anywhere. The Gaming division is still in the black by a billion or so, while MS is still in the read by six billion (?). MS has another seven billion to go before they are doing worse than MS and MS is still here. So unless Sony loses Seven billion bucks in the gaming division over the next year, I won't be worried much. >_>

 

 Wow. You are so wrong.

Microsoft is currently making money on the 360. About a billion a year. Yes, it lost a lot of money in the past, but that is sunk cost. Looking forward - it is quarter after quarter of profits. Microsoft may regret the costly mistakes of the past but is very happy with the present and future.

Sony on the other hand had a great ride years ago. Made tons of money. But for the last 3-4 years they are losing their shirts. This year it is going to be a billion dollars in loses on the PS3. They are not happy and they don't hide it. They must return to profitability to have a reason to continue the PS3 business.

When Sony looks forward, they don't see that profitability is guaranteed. The competitive situation is tough, their cost structure is horrible and the economic crisis combined with currency exchange rates are making it even more impossible. At some point they must start asking "why are we doing it to ourselves?".