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

[mike_intellivision]

Mr Khan said:

mike_intellivision said:
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

Sony's way too far into the PS4 design process for a radical rethink. If they really began designing PS4 with the mindset of "we'll have to totally outclass the next Xbox next generation," then they could have sunk quite a bit of R&D in that direction already

Agreed. But I have seen two different lines of reasoning/reporting regarding the PS4's power, which is the basis for my statements. And of course, analysts make statements with no bearing in the real world, so I just wanted to follow suit.

Seriously though, the financial issues may lead to a delay for the PS4, especially if it is tech-heavy, in an effort to lower production costs.

 

Mike from Morgantown