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TheBigFatJ said:
A price cut is out of the question even though PS3 sales are terrible.

Let's imagine the PS3 sell 8 million units next year with no price cut. If you gave it a $100 price cut and it instead sold 12 million, you'd lose 1,200,000,000 ($1.2 billion) extra on those 12 million sold, and you'd add that loss to the losses incurred per unit for the additional two million units sold.

Sony can't afford that. They need profits, that's how companies work. There are expectations, there are ratings, there are investors. You won't keep people trading your stock for value if your core company can't make a profit anywhere.

And while we're wiping out all of Sony's huge losses from 2006 to 2008, why don't we also wipe out all of their profits from 1999 to 2006? Since the PS3 ate those too.

You're forgetting that the PS3 sold most of its software in the last year, and the third party software sales are likely to increase 50% YOY from 2008 to 2009. Obviously thats a significant source of revenue.

Actually you don't seem to be taking into account the increasing streams of revenue at all. You can't just look at one side of the balance book and say they can't afford something. If I looked at your bank account and disregarded your income when you're looking for a loan you'd be pissed right?

 



Tease.