Sony Earnings

[Sri Lumpa]

Girl Gamer Elite said:

DMeisterJ, for all we know Sony's Gaming Division could still be hemoraging millions. This is their total profits. And with all the factories and assets they've liquidated over the last year you have to ask yourself how much of this is actually profit earned and how much is the offset of the assets Sony liquidated.

How many more assets do you think Sony has left to liquidate to make it look like they're actually making a profit?

Hmm, no, this 113M+ is for the gaming division, not the company as a whole and sony said it was due to severly reduced loss on the PS3 so while the PS3 is still losing money the PS2(HW+SW)+PSP(HW+SW)+PS3(SW) is making enough money to offset it.

 @DMeisterJ: While Uncharted definitely helped I think that the 60M PS2 software helped a lot more as even if they did only $2 on each of them and only broke even on the rest of the gaming division it would be more profit than they actually did.

That said, it is a good thing for Sony and for us gamers as we probably will see a price cut in Q2 for either MGS4 or GTA4.

 Personally I hope that when they go to 45nm Cell they can rework it to make a 2-system-on-a-chip with both Cell and EE+GS so that they could make a model with full HW BC for just a few dollars more than without (so maybe us European can have the option of paying for HW BC).

 @Rocketpig: while Nintendo and MS can use the same die shrink process... to reduce the price of their consoles like Sony di, because they start from a lower price they are less likely to save as much. e.g. if Sony did a 20% cut on the PS3 when it cost an estimated $800 to produce at launch it would cut it by $160. The same 20% off the Wii would cut it by $50. Of course as the production cost of the PS3 gets closer to the production cost of the Wii and 360 further cuts will be smaller and the damage to their market postition this initial cost made will still be here though lessened.

@the new guy who doesn't understand theshipped vs sold issue:

It is a question of point of view, when you bought your PS3 (or 360 or whatever) did you buy it directly from Sony? No, you bought it from Gamestop or Walmart... and they had to buy from Sony a few weeks before (because it takes time for them to come from China) at which time Sony considered it sold, even though you had not bought it yet.

The difference between VGChartz numbers' and Sony's is the number of consoles sitting on store shelves, in warehouses or in transit from where they are produced/stocked by Sony. It is normal for that number to be higher around Christmas because retailers prefer to have too much stock at Christmas than sell out and miss selling it to the Christmas crowd who might not buy before next year. Due to that high level, shipments (i.e. Sony's sales) for next quarter should be smaller as retailers order less so they can sell their extra inventory.

If a company stufs the channel by forcing retailers to buy more units than they normally would (like MS did in 2006) you get a situation where they sell almost nothing the next quarter (like MS in Q1-Q2 CY 2007). 

Now it doesn't mean the VGChartz is not under/overtracked on the PS3 but certainly not by thee whole difference (hell, even the quasi sold out everywhere Wii had a difference of 500k between Nintendo's shipped numbers and VGChartz's sold numbers).