Sony's gaming unit lost $443 mil 3Q

[Kytiara]

staticneuron said:

That Guy said:

FishyJoe said:
No, that was the third quarter 2006, the PS3 hadn't launched yet.

You're right. Q3 2006 would be from April 2006 to July 2006, before PS3.

 

http://en.wikipedia.org/wiki/Fiscal_year

We could guess the losses post-PS3 pretty easily, though.

Assuming $200 loss per PS3 @ 3 million PS3's = 200 x 3,000,000 = 600,000,000
dollars.

Of course, that does not take into account marketing, sony's movie studio, game sales, blu ray sales, etc. etc.

 

 Yup and sony knows this.

 http://www.businessweek.com/innovate/content/may2006/id20060501_525587.htm?chan=innovation_game+room_top+stories

 

"Sony Corp. today announced details from its fourth quarter and full-year fiscal results. For the quarter ended March 31, 2006 the company lost 66.53 billion yen (around $569 million) on 1.85 trillion yen in total revenue."

 "The results for Sony's game division during the current fiscal year will not be good however, as the company ramps up investments for the PlayStation 3, which launches worldwide this November. Sony expects the segment to hemorrhage 100 billion yen ($871.6 million) in operating losses during the business year as it prepares the PS3 for launch."

I can't help but think that this Thread is a "OMG look how much trouble sony is in". I think the sheer fact that they know, were planning on, and still willing to lose 800 million+ worth of profit, should just show you how serious they are concerning their direction in the gaming arena. 

Whether they were expecting the loss initially or not, you have to assume that they figured it would be made up in hardware and software sales soon after.  Digging themselves close to a billion dollars in the red AND not having strong sales as of yet was most likely not part of their long term agenda.  I guess they can only hope that the money bag is deep enough to last until the story starts turning around.