Sony sees record $6.4 billion net loss, to take tax hit

[mike_intellivision]

Sony has some strong assets. It also has elements that are causing great problems for the companies bottom line.

The Playstation brand is a strong element. The PS3 currently appears to be a money maker. However, the PS Vita is not currently profitable and is not doing well. I don't expect it to be "killed" -- but I would not be surprised to see it "orphaned" to die a natural death. Meanwhile, the PS4 might either have to wait or be built to be profitable from the beginning. That would mean a smaller technological jump, which might not be bad since it would mean a lower price point and until people get Full HD TVs, too much more graphical power is probably pointless. But it also probably means Sony will not have the financial muscle to "guarantee" (purchase) third-party exclusivity. (The apparent shift of Monster Hunter Portable from Sony to Nintendo signals this may have begun).

Sony can survive. But it will have to be smart in what it does and what battles it fights. And it will have to give up something. Most of those changes will not be gaming related. But inevitably some will.

Mike from Morgantown