SlorgNet on 03 December 2007
| Pk9394 said: Can someone that is very good at accounting tell me how this is possible??? sony's gaming branch been loosing billions of dollar for 2 straight year (assume by march they'll announce another 2 billion lost) how the hell they can manage to fix their balance sheet to break even within a year???? |
There's no magic involved. Three reasons:
(1) massive cost reductions in the PS3 hardware (Sony is very good at this). The original units cost $800 to make, but after one year, smaller die sizes, hardware changes, and the mass production of BluRay drives, the cost has come down to $500 or less. So they're not losing more than $100 on the 40BG model, and they're breaking even on 60/80GB models.
(2) The PS3 is selling like hotcakes in Europe. The Euro is at 1.45 to the dollar, so they have a profit cushion they can use to cover losses elsewhere. (399EUR=$578).
(3) HDTV sets are finally affordable, so PS3 sales are getting a speed boost from consumers who want a top-quality BluRay player at an affordable price.
