NJ5 on 07 February 2010
Squilliam said: If the hardware losses as implied are this low, then they must be losing money on something else. There are only 3 areas where they have big enough expenses to really lose all that money. 1. Advertising? They must be spending a lot here. 2. Game development? Face it, all HD publishers have been making losses and I doubt that Sony is any different. 3. Research and development? If they're spending heavily here, it means Console number 4 is inbound sooner than you think. |
They have 5,000 employees in SCE, which means a lot of fixed expenses.
Obviously all the things you mentioned cost money, though number 2 is mostly employee salaries which are part of those fixed expenses.
My Mario Kart Wii friend code: 2707-1866-0957