Does the Wii prove that the HD razor/blade model is flawed?

[bdbdbd]

@The Prof: With chinese currency i mean that, Sony obviously is making electronics in China. The Yan (Yuan?) rate against USD have been pretty standard in recent years. It's impossible to make more losses, if the currency you use to pay the bills fluctuates with the currency you sell stuff. Of course, i don't know where and how much of the work is done in Sony products.
But what it effects, is profit made with foreign currency.

The current situation resembles 2002, when Yen was weak against USD but strong against Euro (currently the situation is little worse, however). I took the 2005 to 2008 period because at the moment Yen against Euro is at 2005 level and between 2005 and 2008, the Yen-USD exchange remained somewhat constant, while Euro was going up against both, (starting at around 130 Yen per Euro) peaking at around 170 Yen per Euro in 2008. Sony should have had ever increasing margins during the period.

And as i mentioned in the earlier post, i'm not putting the blame on recession, as much as put blame on bad business decisions by Sony. Increased PS3 (software and hardware) sales should be making a lot up for the hit it's taking from recession and bad currency exchange rates, but that isn't the case. Ever since release, PS3 have been a financial burden for Sony and it likely will be still for a while.