Sony loses $18 per console in US, possible profit in UK

[jarrod]

Twistedpixel said:

jarrod said:

binary solo said:
Is making a profit everywhere except the USA methinks (sells here for the equivalent of $340 US (after taking off the sales tax)). Which is why the Q3 earnings for their Networked Devices Division were in the black.

Sony already said the games unit was flat for profitability, and that reduction in costs for PS3 were countered by lower sales of PS2/PSP.   The surge for Networked Devices & Services was attributed entirely to a rebound for Vaio.

Which implies that as the PSP and PS2 are profitable, and likely VAIO computers (thanks to Microsoft, oh how ironic) that the overall PS3 enterprise taken by itself is still unprofitable considering their first party focus on this platform, software royalties, advertising, online costs, management, research and development, shipping, etc. It implies that the PS3 itself will be unprofitable for 4 financial years at the very least, financial year ending 2010. I think to their credit its one financial year less than the Xbox 1.

Yeah, though in fairness Xbox 1 only had 4 FY cycles before 360 hit, and Microsoft pretty much abandoned it asap.