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Lale on 03 January 2009
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NJ5 said:
Lale said:
FishyJoe said:
Lale said:

 

 Yes, but the Y800 worth PS3 now also costs only Y800 to manufacture since the Japanese are Sony is offering the strong Yen for the components (Taiwanese mostly) and to the workers in China.

Well, perhaps not Y800, but the cost reduction from a strong yen perspectice must be significant since the PS3 ain't built in Japan (perhaps a very few components are Japanese, not sure).

 

Even when you take this factor into account, it's still going to cost Sony billions of dollars throughout the company. The gaming division alone with a 5% change in Yen valuation change caused an estimated $300 million loss. Now imagine what another 10% will do. Combine that with the underperformance of the PSP and falling PS2 sales.

Hmm... a measly 5% currency change really caused a $300 million loss for the Gaming division alone? I have a hard time grasping that. In what time span, a Fiscal year?

 

Did you read this link yet?

It's not 5% by the way, nearer to 20%.

 

"As far as Game is concerned, while euro has a major impact on Game business, I would say 30 billion yen impact because of the exchange rate change"

So, he says if the yen gets stronger to Euro by a 140/120 ratio the Gaming division will lose 30 billion yen = $300 million, is that correct? Wow. But in what time span... a whole Fiscal year?