| sieanr said: So this is confirmation that the PS3 is still selling undercost. |
According to the financial report, they took the hit of reducing per-unit inventory price in this quarter, obviously in order to reduce later losses or to be able to post profit. Many of the PS3s shipped lately were produced long ago at high cost, and the financial report says they wrote down inventory, which contributed to the high losses in this quarter. It\'s a similar situation to Microsoft writing down the cost of fixing RRODed consoles in their 2007 report, even though these costs will be happening during other financial periods too. A little financial trick so to speak.
What I don\'t know is what value they\'re counting each PS3 in inventory for. If it\'s inventoried at recommended retail price, it means they took the whole hit in this quarter and they\'ll appear to break even on that inventoried hardware in later fiscal periods.
All of that says nothing about current production cost though. But from listening to the Q&A session from the conference, I believe they\'re not expecting to break even on hardware production yet.
My Mario Kart Wii friend code: 2707-1866-0957
