PS3 still losing money?

[Squilliam]

Dodece said:
The problem for most on these forums no matter where they sit in the debate is a case of clear near sightedness. You simply must view Sony as a whole. Sony was able to aggressively price the PS3 due to the company as a whole making this possible. The gaming division was not self sufficient. You cannot view any division at Sony on a local level. Stringer talked about doing this, but there is no indication that it became a reality.

This is the reality at Sony. They are losing money. They owe a lot of money. They are in a economic recession. Which means it is taking longer to make money, and finally they are up against a poor currency exchange rate. The bottom line is this Sony is in no position to abandon profit, or look the proverbial gift horse in the mouth.

When a division any division begins to bring in a profit Sony is going to be using that profit to offset losses in other divisions. Pay down that debt load, and bring dividends to their investors. The gaming division alone has brought down has a billion dollars of debt on the shoulder of Sony in loans alone. Which is what a lot of members forget. Sony couldn't afford the manufacturing and launch of the console alone. They went borrowing against the console.

Frankly any consideration of price cutting on this console was idiotic once the economy hit the skids. The question is not what can Sony do to win. I am sorry the contest is over Sony has lost this battle. What matters now is not losing the war, and the number one way to do that is to survive to fight another day. The true fan must understand this, and actually be happy.

In a bizarre way if you find Sony cutting the price on their console that is when you should get upset. That has a greater then fifty percent chance of meaning they are abandoning the console. That would mean they have given up on the console being a profitable venture period, and have decided to do what it takes to liquidate stock.

I don't really understand why you wrote that. It makes sense that at this point they won't abandon the console and if they do make any moves on the price of the console, it will be because such a move is justified and is productive towards their corportate goals which include improving profitability.