reverie on 10 April 2007
@Lingyis & larry
Nobody is denying the comeback of Sony Electronics or the good numbers of the company as a whole. What's in doubt is if the PS3 can become a profitable business. In 2001, SCE made a loss of ¥51 billion due to PS2 investments. In 2007, they will make a loss of around ¥200 billion due to PS3 investments. Notice how that is 4 times bigger?
And compare 2000 with 2006, the pre-launch years. In 2000, the PS1 harvested big profits of ¥77 billion, while 2006 was already burdened with PS3 development cost at profits of just ¥9 billion.
And seriously, why is BluRay so vital for Sony as a whole? How much royalties can you make on a standard that you're not even the exclusive owner of? How much would Sony Pictures lose if they had to start selling HDDVDs instead of BDs? Zero. And Sony Electronics? Maybe $250 million if they move fast.
Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.
