The Yen is Killing Sony - Is a PS3 Price Cut Even Possible for 2009??

[Paul]

FishyJoe said:

Paul said:

Kyros said:

In this case, both are dropping but revenue seems to be dropping faster (especially when you consider the PS2/PSP decline).

? The article was arguing that SONY has in effect made price cuts because of the rising yen, correct? This is a stupid argument when you consider that most PS3 are assembled in China (there is a japanese factory but it is much smaller), and the parts come from all over the world and most likely from the same locations as for the 360.

Nobody was arguing about the financial results of sony or of their problems due to sinking PS2 sales. The article made a statement and its simply wrong.

 

 Sony reports in yen, what do you not understand about that?

 

I dunno, it's pretty clear in Sony's revision:

http://www.sony.net/SonyInfo/IR/financial/fr/08revision_sony.pdf

And since this revision, things have only gotten worse.

1. Due to a change in our assumptions for foreign currency exchange rates in the second half of the

fiscal year, as noted above, to reflect the significant appreciation of the yen above the rates

assumed in July, we expect our results to be lower than the July forecast with operating income

decreasing by approximately ¥130 billion, mainly within the Electronics and the Game segments

(assumed foreign currency exchange rates in July were approximately ¥105 to the U.S. dollar and

approximately ¥165 to the euro for the quarter ended September 30, 2008 and approximately

¥105 to the U.S. dollar and approximately ¥160 to the euro for the second half of the fiscal year).