The winner for hardware revenue in December is.....Sony

[Sullla]

Gazz said:

This topic is about Sony making the best revenue off all manufacturers and with a high revenue they make the best chance of making a bit of profit. The PSP and PS2 both sold 1.1 million units each and with that they make up a lot for the (potential?) loss on the PS3 which sold 798K on it's own according to the article.

Like I said before, perhaps my numbers are way off but they atleast leave room for discussion and show I put effort into my reply instead of: Revenue minus more costs we automaticly assume means loss cause it's Sony. This topic is filled with those type of reactions.

Gazz, you can't possibly be serious with this comment, can you? Sure, in an abstract sense high revenue allows a greater chance of profit, but I don't think anything could be further from the truth in this particular case. Nintendo's financials today revealed that they made $1.2b profit on approximately $6b in sales. While Sony's gaming division may have revenue comparable or even higher than Nintendo's, there's absolutely no chance that their profit will be anywhere close.

If the PS2 and PSP do such a great job of offsetting the PS3's costs, how come Sony keeps losing so much money every quarter in their gaming division? Here are the recent numbers:

FY 2007  -232b Yen (-$2110m at $1 = 110 yen)
Q1 2008 -29.2b Yen (-$265m)
Q2 2008 -96.7b Yen (-$879m)

What amazes me is how Sony can post massive losses quarter after quarter on their gaming division, then continue to aggressively cut the price and bundle the PS3, while Sony fans insist with a straight face that Sony is profiting on PS3 hardware! Folks, something has to give somewhere!

Regardless, Sony's numbers are due out in a week. Should make for interesting reading.