Sony expects "Huge impact" on earnings from slump in Euro.

[Aprisaiden]

Seece said:

What were they expecting profitwise this FY? I know Nintendo as of last Q were expecting around $225mill, I guess that's practically going to be wiped out now (given they ship 40% to europe and just price cut everything) Nintendo to make first FY loss in company history? Looks likely.

I do find it amusing how Sony and Nintendo have slashed prices this year, when they face major losses, and the last time MS were dealing with overcoming losses they rose the price in the UK ...

Is marketshare really worth fighting for when no profit is in sight?? To add insult to injury, at least with the Wii cut, it seems to have done nothing! $50 of revenue per wii down the drain ... because they don't want to ship 9 mil this fy insted of 11 mill ..

Well i don't think SONY's price cuts in Europe have had that much of an effect on there overall profitability and in the current market its hard to predict where the market will go. 

As for Nintendo, the Wii and 3DS pricecuts were abosoluting needed. Without them Nintendo just wouldn't be selling any hardware and software sales start to dry up -- especially for 3DS and that would of had a major longterm impact on Nintendo rather then the short term pain from the price cut.

Overall the big question is -- how long can the world economy and companies endure the current market conditions?