Sony's gaming unit lost $443 mil 3Q

[johnlucas]

RolStoppable is preaching the gospel. It sounds just as good as if it came from my own mouth. Lossleading is supposed to be a strategy to break IN to a market. Not be a way of life & standard procedure. It's a not-to-good strategy to begin with that being said but that's what it's supposed to be. Once established a business is supposed to learn how to make money & profit more securely. Have you ever heard of the term "Pyrrhic Victory"? http://en.wikipedia.org/wiki/Pyrrhic_victory That's how Sony ran the 12 years of Playstation dominance. Sure they profitted but look at how much they put in to GET that profit. Having the two greatest selling systems of all time and only making in comparison little money take-home. Revenue means nothing. That's the TOP line. It's profit, ONLY profit that matters. Stone Cold says "And that's the BOTTOM line" We're talking accounting talk here. The Bottom of the ledger when all counting has been tallied. My gross sounds nice when I pick up my paycheck but I gotta look at that net after the government jacks me of my money to figure out where I REALLY stand. And then I gotta pay my civilian bills & expenses. What's left over is mine (and usually that ain't very much LOL!). Foolish strategy because it requires keeping up that dominance to survive. Sony can't survive as the underdog like Nintendo who works their monies more wisely. If Microsoft wasn't in the picture Sony would be safe as the alternative to Nintendo but Microsoft made sure to mirror Sony's platform so well that it supplants Sony's position in the market leaving them basically redundant. Of course Microsoft being an outsider still hasn't capitalized like they should on sealing the deal luckily for Sony. Some markets are still up for #2 grabs so Sony can stage a building here. It's scary when Sony actually has to NOT sell as many PS3's in order to not lose as much money. It's just bizarre. It sounds fatal quite honestly. And then this forces less gamebase to make up in software sales. But then on top of all that it stalls on the shelves. Worse of all their money isn't as long as Microsoft's is so MS will just make them spend themselves out of the game with that green stamina. PAL launch was a shot in the arm to save this failing project. Yes I said failing. But they're gonna need more than that to stay afloat here. As this generation wears on you're gonna see the telltale battle scars upon the Sony Computer Entertainment Division. They've lost Japan & they're losing the other regions to the competition as well. It's gonna take a miracle for the PS3 to even survive. Forget about becoming #1 in the market, they just have to make it TO the market. John Lucas