Sony slashing jobs, leaving unprofitable businesses

[heruamon]

Bodhesatva said:

kowenicki said:

TheBigFatJ said:

 

WoW is a bigger undertaking than PSN by far and it has cost less than 200 million to run since launch.  That's less than 50 million per year.  PSN probably costs less than half that.  The equivalent of putting a $25 price drop on hardware a year earlier than planned.

how do you know this?

 

 

 Was about to ask the same question, particularly when Blizzard's slightly-leaked financial information suggests otherwise. Going by Blizzard's own finances, it was closer to 200 million per year, not 200 million total. 200 Million dollars per year is a sizable chunk of change.

No, he got it right....it's has been reported at around $200 million in maintanance cost, but it probably doesn't include one-tiem charges, like developing hte game and expansion pack.  Still, last time I checked, $200 million over 4 years is a HUGE sum of money, especially when you're barely profitable, and your profits were slashed by 70% last qtr.  is it going to be much much cheaper to operate PSN Home, and all the bells and whisltes, I can't say, but when you're cutting cost...