Sony Computer Entertainment 2011 Fiscal Report 94.3 billion Yen deficit

[Dodece]

Like many I was having trouble believing that Research and Development could justify these losses in whole, or as a major contributor. That said I like to deal in facts more then I like to deal in opinions. I am glad that I made sure of my facts before posting. While it is true that Sony did sell its stake in semiconductor manufacturing to Toshiba back in 2007. Which would have left the majority of R&D up to a third party to absorb. After all Sony doesn't have to be the one designing a component. They just need to buy it from someone else.

Sony did do something rather unexpected they left the industry, and then they bought back into the industry, or it seems that was the plan. They sold their stake in the Cells manufacturing to Toshiba, and now it appears they have bought it back for less then they sold it for initially. I suppose it seems smart unless Sony repeats the losses that they suffered initially to begin with. The cost of acquiring the manufacturing facility is 835 million dollars, and that does go a long way to explaining these numbers. Especially when you factor in true research, and development. Not just finding a way to make the chips better, but retooling the facility to manufacture them. All of that really before work can be put into developing other components.

So I guess I am vindicating the Sony Defense Forces on this one, and some of you probably need to pull back on your blood lust. These losses are the PS4 production line gearing up as it were. Personally I don't think this was a great strategic move on their part, but on the plus side for the fans of the Cell it doesn't look like Sony is going to abandon this particular piece of hardware moving forward. So you can rejoice your probably going to have real backwards compatibility for the next console in the series.

http://pulse2.com/2010/12/24/sony-to-buy-chip-fabrication-facilities-from-toshiba-for-835-million/