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Train wreck on 06 August 2012
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RolStoppable said:
ils411 said:
RolStoppable said:

Sony's gaming unit has been posting losses for the last two quarters which coincides with the PSV launches in America and Europe. Previously, they posted profits for several quarters in a row. It's not hard to see a connection. If it isn't the PSV that drags Sony's gaming unit's financials down, then what is?

You obviously don't know anything about manufacturing/marketing/sales so i'll just let this be as I don't feel like downgrading myself to your level.

Cutting your price by more than 30% just a few months after launch is the king of fail. No matter how you look at it, that move was epic fail to the highest degree.

You didn't answer my question, because you know I am right. The PSV is causing Sony's gaming unit to lose money. It's not the PS2, PS3 or PSP. It's the PSV.

Selling at a loss (PSV) and failing to reach the same sales performance as a product that is sold at a profit (3DS) is a bigger fail than switching to lossleading after a few months. What this means for Sony is that they have to take an even bigger loss on PSV hardware in order to keep the system relevant. Otherwise third parties will either switch to the 3DS or subscribe to the "smartphones have killed the dedicated handheld" mantra. Without a doubt, Nintendo handled the 3DS poorly. But Sony handled the PSV worse.

Well if you look at the numbers...

We dont have the forex impact of last year but 3.2 of the 3.5 operating loss for Q1 2012 is currency. So strip that out you're basically at breakeven.

Quarter (Q4 Jan to Mar) on Quarter (Q1 Apr to Jun); the loss went from a -11.5 to -3.5 (not including currency). Q4 included the launch numbers for Europe and the US.  If the numbers for Q1 are worse than Q4 for vita sales, where did the 8 billion yen gain come from?

The division has 20 billion dollar sales hit (from Q1 '11 to Q1 '12) which again impacted its bottom line, if you are not selling more stuff you can't profit off it. They sold 400k less ps2/ps3 400k combination psv/psp and 8.3 million units of software between all platforms (with software being the biggest driver)  

Saying its all vita fault is the nice convenient way out but its alot more than just that.