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peachbuggy said:
Am a bit confused here. Not for one minute claiming to be a finance expert but didn't the PS3 recently receive a price drop? I thought at the time that it seemed like financial suicide, given that at the time Nintendo were reporting massive losses due to the strong yen. Surely the self same problem that would make the price cut a risky move? Is it all divisions of Sony that are reporting a loss? Due to the reasons i mentioned earlier i wouldn't be surprised if the gaming/playstation division were losing money but i would expect a strong yen to affect all of Sony's many divisions.

Speaking competely unbiasedly, i would have to say that given my ignorance of most things Sony, (again, i'm no expert) i'm of the impression that Playstation is one of Sony's most profitable divisions. So just to put some context to this discussion, from an outsiders' (ie, me) point of view i'd say the gaming division is going nowhere. I feel that Sony would let practically the whole of the rest of the Sony empire fall before relinquishing its grip on the Playstation brand.

Just my view.

We can't know it because in ¿2009? they merged Playstation, Vaio and Walkman divisions into the Networking division, and this year they have merged all their electronic divisions into a big conglomerate, so we can't know where the losses come from. Most people think TVs, but I'm sure that almost all electronic products they sell right now lose money in USA and Europe, due to the extremely strong yen.

 

I'm not so sure if Sony would let the rest of their empire fall before Playstation, this generation has bleed an enormous amount of money, so much that Sony merged divisions so investors couldn't know where the losses came from. It isn't a cash cow anymore, this year they must be flat or in the red, when they should get the most profit from it, entering the PS3 in the mass market price bracket, and selling a lot of consoles and games. This console cycle has been abysmal for Sony, they need to recover in the next one to keep the PS brand relevant.