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jlrx on 28 December 2007
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Renar said:
RolStoppable said:
If I remember correctly, Sony made more than $3 billion profits with the PS1 and about $2.3 billion with the PS2, combined this amounts to roughly $5.5 billion in profits for Sony's gaming division before the fiscal year the PS3 launched in.

In fiscal year 2006 (when the PS3 launched), the gaming division posted a loss of $2 billion, for the first half of fiscal year 2007, the gaming division posted a loss of $1 billion. So by doing the maths, this leaves roughly $2.5 billion of profits for Sony's gaming division since it exists, with further losses expected for at least another year.

With how things are going, the PS3 definitely has the potential to eat up all of Sony's gaming division's profits they had made during two absolutely dominating console generations.


You're exactly right, Rol.  

http://www.sonet.co.uk/SonyInfo/IR/financial/ar/Archive.html

Sony Annual Reports Game Operating Income
YearEnd Mar 31 Yen(B)  

2006  8.7
2005 43.2
2004 67.6
2003 112.7
2002 82.9
2001 (51.1)
2000 77.4
1999 136.5
1998 117
1997 57
1996 (5)

PS1 era (1996-2000) made  383B yen.  PS2 era (2001-2006) made 264B yen.

PS2 *was* (and still is) profitable, but not as much as the PS1.  Sony sold PS2 for too little to make as much as the PS1, before the next gen. box came along. 

For Fiscal Year 2007 and 2008

Q2     (96.7)
Q1     (29.2)

2007 (232.3)

So far the PS3 era (2007-now) has lost (358B yen).  So, they have now lost all they made on the PS2 (including what PS2 made the last year and a half), and are working on losing the PS1 profits as well. 

Still all together for the last 12.5 years, Sony is up 289B Yen .  At 115 yen/$ = $2.5B.

 

 

 


Are you including the gigantic losses they are going to post because of the price cuts? I know its one thing if it's gotten cheaper to lower the price, but I believe they produced so many systems early on and expected to sell them for X dollars at X loss, but now they are going for Y dollar for Y loss - all that back stock has to cost them huge