M$ layoff 5,000 and Sony loss correction

[fulcizombie]

Grooski said:

MonstaMack said:
Microsoft MADE a profit last year. Sony DIDN'T.
That is the key difference there. Microsoft is laying people off despite a profit because they are being cautious, do you blame them?

 

No, they are laying people off because of this:

EDD Operating Profit Q2 2007    $375mill

EDD Operating Profit Q2 2008    $151mill

 

In the busiest quarter of the year, they have seen a 60% drop in operating profit year on year. This is worrying for them due to the coming Q3 being the slowest period of the year. Revenues will drop away sharply.

It wouldn't surprise to see the EDD show a loss come Q3, though I'd rather be in their shoes than Sony.

Not only will the EDD make a profit in q3 but it will post a bigger overall profit this fiscal year than the last (475 million $). Last year they had halo3 , a more conservative pricing policy and a way more conservative marketing policy .This year they had a huge marketing campaign in europe , a bigger price drop and they managed to stay profitable . Trying to even put in the same sentence MS' and sony' s situation is laughable .