Lale said:
NJ5 said:
Lale said:
NJ5
These are all predictions about Sony as a whole, but what about the Gaming division? What do you predict for example the Holiday quarter, how much loss/profit? |
Let me dig up some data...
Assumptions:
- holiday software sales for Sony (PS2+PS3+PSP) more or less the same as last year
- Revenue in the same quarter last year was 581 billion yen, with 12.9bln yen in profit
- 80% of the game division's sales are abroad (it's probably more)
The same analysis I made for the OP (not considering PS3's production cost reductions for example) would lead to a $500 million loss which is not gonna happen due to that factor. It also helps that PS3 software is more expensive than PS2 software.
After considering these factors, I'd say a $200 million loss at least, but the gaming division is harder to predict...
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But the Gaming division can't lose that much money in a Holiday quarter. Sony's last Holiday quarter made a few $100 million profit, and in 2008 there wasn't even a price reduction on the PS3! Well, now you might say look at the strong yen, but as the guy above pointed out, HW components are priced in Dollars and the PS3 is manufactured in countries that don't have the yen (China?).
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That doesn't really matter, that was always the case. Sony's figures are in Yen and most of the revenue is in dollars. Hence a higher Yen means that the same amount of income in dollars will be a lower amount of income in Yen.
For example the most expensive part of running a business are the employees. Most of those are paid in Yen.
