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

[Dodece]

This is critical data useful for all range of future forecasts. Which is perhaps the real crux of these forums. So not only is this thread entirely relevant it is perhaps one of the most relevant threads. Whether its outcome is perceived as negativity. I am sorry whether someone says it or not this is still a problem for Sony. That means it is better to know so you can put the knowledge to good use. Even if it does not suit your purposes. Bottom line do not bitch about this.

The currency exchange rate is rather vexing for Sony's gaming division. The upcoming year was to be a return to profitability, and they soaked up the losses thinking there would be a turn around two years out. Now that is probably out of the cards for another year. Perhaps upwards of two years. That means four years of being unprofitable. With the PS2 sales substantially slipping, along with the PS3. Well its just grim. The investors have been placated in regards to gaming, but they do have their limits. They were promised profits this year, and if Sony goes out slashing prices, and the company eats more billion dollar losses on gaming the outrage could turn into action against the management.

Sony must do something radical in regards to their gaming. They really need to review their future plans. Market share may no longer be a priority for Sony. Especially if it bleeds them like this. Even being a console manufacturer may not be a priority. There is a real question as to whether they could even limp into a new console generation. For that to happen Sony would need to see profitability in the coming year.

The currency exchange rate is not entirely to blame for the current situation. Sony had a bad model that was losing buckets full of money prior to the recession. They also opted for the expensive alternative in a fast food world. Perhaps the best strategy for Sony is to amputate that which is bleeding them. Their hardware, and focus on bringing their software to multiple platforms. Were they to do that it would probably see them bringing in real profits by the end of next year.