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Dodece said:
I am often dismayed by the primitive financial mindset that pervades the reality of so many posters on this site. No matter how many times it is explained to them they simply shun it off. Like a religious zealot refusing to acknowledge a scientific fact, because it conflicts with their faith.

Microsoft is in sound financial shape, and are making more money on their games business then Sony is, or losing less as the case may be. Nobody can be certain productions costs are not updated, but older hardware with a long manufacturing cycle usually has a lower production cost. So their Halo 3 special edition models for instance might actually be profitable hardware sales.

Sony on the other hand is not in sound financial shape. They have taken out excessive loans to fund PS3 development, and the launch. They have had financial assets get tied up in unsold merchandise. Millions of PS3s unsold adds up to Billions of dollars you cannot use. Finally this year they have terminated thousands of employees, and are even selling off parts of their company. What part of this makes anyone think Sony is doing better then Microsoft.

Sure Microsoft would like to generate a profit this fiscal year. However this is Microsoft, and they have to be happy watching Sony chewing off its own legs trying to win this particular race. Thats a strategic victory even if it is a hollow one. Having a competitor destroy itself is always a good result.

Excellent post as always. Honestly Sony is starting to remind me of Genesis era Sega. They went broke keeping up with Nintendo during the 16-bit era and never truly recovered. It looks like I will be eating crow on the whole $399 PS3 being released this year. That said, I would hate to see Sony's earnings for the fiscal year. They are going to take a serious bath on a $399 PS3.