Sony slashes profit margins on games business to just 2%

[JEMC]

Proclus said:
Kind of curious to know whether it's the HW or SW side to not perform as well as initially expected, or whether they undershot on costs factoring.

Either way dissapointing for Sony I guess, but still better to profit a bit than not at all.

It can be the increase of RAM, going from 4GB of expensive GDDR5 to 8GB while keeping the same price point (a guess).

Higher manufacturing costs and bigger than expected losses from each console sold can explain that revision, at least in part. Add possible price cuts for Vita and PS3 and there you have it.