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makingmusic476 said:
Kynes said:


Then explain to me how they can, with all the first party games they sell, all the reneuve from third party sales, breaking even (if they really are doing so, something that I don't believe) with the PS3, earning lots of money with PS2 and PSP hardware... still be in red if you aggregate the last three quarters (last quarter we have data they were ~55 million dollars in black, taking into consideration that Vaio had the back to school period, where they sell tons of notebooks, it seems that PS division still bleed money), and almost 5 billion dollars lost since FY 2007.

The most plausible explanation is that they are talking about breaking even only considering the hardware, not the operation cost.

R&D, both for PSP2 and for the expansion of the Sony Online Network (ie, PSN making its way to every piece of Sony hardware), for which they have an 11 year roadmap over which it'll be phased into existance.

The PS3 is part of their larger division of networked devices, and this network is an enormous undertaking that is likely burning through the most revenue at this point in time.


If this is true, then they have a big management problem. If they want to fight iTunes, Spotify and other free/paid streaming services, google/apple/netflix/whatever tv service... they are going to be eons in red.