Avinash_Tyagi said:
Not according to Sony
http://kotaku.com/5408318/sony-outlines-gaming-turnaround-sees-ps3-profitability-in-2011
Sony's gaming division should start seeing profitability by the tail end of their 2010 fiscal year through cost reduction and "operational efficiencies", Sony Chief Executive Howard Stringer told a gathering of press and analysts today. |
Let me tell you that a budget is much more complicated than green and red numbers, ie. there are write-offs from previous acquirements(production facilities, game studios, development kits, internal networks,..) spread over the time these aquirements are used in the production/development and often the companies with multiple products put all these write-offs on one product, though it in theory should have been differentiated.
Another thing is the income, in this case the Blu-Ray royalties, HD-TV sales and 3D push factors aren't included in the PS3 budget, but they are there and Sony is aware of the value.
The same goes with MS, they too can put these expenses on other products to make their let's say Zune seem less flop like.
Differentiating these things is as said too complex, thus comments like "selling a loss" (from a person who can't stand bad English :o) only becomes more ignorant the more one learn about how business is conducted.
Heck chances are that most PS3 have had different production costs due to different hardware suppliers(just look at 360 drives) and being made on different factories where the employees are paid different fluctuating salaries. EDIT: a bigger production might even mean a lower production price per unit.
In the end of the day, the best way to judge is to look at the company and it's nature, does it have a history of expanding(razor thin margins) and how is its support to the product?
