Sony scales back expectations for Vita after weak sales performanc

[Chark]

RolStoppable said:

Chark said:

Ah yes, I was mistaken about the revenue. I agree on the Yen and I wonder when the rest of the world will get itself in order and stop bolstering its strength. I still haven't seen strong enough evidence to determine the PSV is sellilng at a loss. There are far too many factors in their expenses in combination with weaker than expected sales on their profitable devices, which may or may not include the Vita. It would be nice if their spreadsheet could be guessed like that but as is you can't conclude that from this information. It's a stretch and a long one.

About those profits before WW PSV launch. Plenty of Vitas sold in the quarter before that and yet there was profit. If I was to use your standard to determine Vita's profitability I would use this as say that it is making a profit. Instead I'm using more reliable data from the cost breakdown to prove my point and there has not been any reasonable data to the contrary.

It was the holiday quarter where sales are high across the board and that means higher profits for already profitable systems. The PSV being sold only in Japan obviously isn't negatively impacted by a strong yen. Put these two factors together and that's why Sony's gaming unit could post a profit during that quarter.

The cost breakdown of the PSV really isn't reliable data, because the cost breakdown of the 3DS wasn't either. If I remember correctly, Hirai said that he expects to profit from Vita hardware within a couple of years or something like that. It's actually not hard to believe that the PSV is sold at a loss, given all the available information. It's more a matter of if you want to believe it or not.

So you admit your view on Vita not selling at a profit because you want to believe it isn't. Rather ill willed if you ask me. I "believe" it is because of the data available points to it. A second hand breakdown of the costs is the best data available. Was the 3DS breakdown proven wrong? That being $100 gave the system a $70 coushion but Nintendo declared it was selling at a loss. Vita at $160 has a $90 and $140 cushion. Assuming identicle costs for both console to the sale 3DS would have to be selling at an over $70 loss which would make it's original price of $250 bring in less than $10.

From this it is hard pressed to think that at least the 3G Vita is not selling for a profit and there is no way to determine Vita's effect from the entire PlayStation division's quarterly figures. You would need a proper breakdown.

Like Kowen said the three years to achieve profitability is for the Vita project and was falsly reported as a loss per system by journalists who misinterpreted or "misenterpreted" the quotes. Unfortunetly if Vita sales remain slow that three year mark could drag out.

System loss or profit aside, Vita is bringing in profits from software, accessories, and memory cards. It would be difficult to determine Vita is causing Sony losses with these sales mixed in and Vita's low level of hardware sales.