How are Sony losing so much money on gaming?

[theprof00]

RolStoppable said:

theprof00 said:

RolStoppable said:

Since we are talking about losses usually in the hundreds of millions per quarter, the most plausible answer is that Sony is losing more money on the PS3 hardware than you assume ($50). As I previously said, it's probable that Sony talks in the most favorable way for them about how much money they lose on each PS3 unit. This most likely excludes shipping and really only accounts for building the machine and nothing else. Also, since more than a year they keep saying that they hope to break even/become profitable on PS3 hardware, the keyword being "hope". This implies that they are unsure to achieve that feat in the projected time frame.

Additionally you are forgetting about exchange rate, Sony is losing somewhere between 15-30% of revenue on exchange rates. They COULD just hold all the revenue from American sales in America until the money matches up more similarly, but then they wouldn't have very much capital to work with. It is possible that they are doing this and claiming the 15-30% as a loss, but I really doubt it.

Good point. The majority of the PS3's sales, just like with every console, come from outside of Japan and the exchange rate really made matters worse for Japanese companies. Although in the end it again comes down to Sony losing more money on PS3 hardware than estimates led us to believe. But still, you have been useful. That's already the second time this year, right?

I believe that's a personal best, yes.