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czecherychestnut on 31 October 2014
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kowenicki said:
Ka-pi96 said:
leo-j said:
........ The only thing that is going to get them in the green is a successful smartphone...... The PlayStation brand is basically barely breaking even.. They can't keep ps4 399 forever..

£123 million profit = barely breaking even?


Thats not a big profit given the current state of play.  We have been lead to believe each playstation4 is profitable, clearly the PS3 is profitable, the Vita is irrelevant as investment has stopped there, so why such modest profits?

123m?  thats actually quite a small number for a large company. 

Maybe, its still $US200 million in one quarter. Even with profitable hardware, the majority of profit is made on software and this early on even with the very successful sales the PS4 install base is still small. Its actually impressive that software revenue increased YoY given the rapid slowdown in PS3 in general. The big thing is how quickly the profitability is improving within the gaming segment. That implies that though the PS4 is generating modest profit at the moment (because of its small install size), as that install size increases profitability should continue to increase as SW and network sales improve, above and beyond what PS3 was able to achieve. 

I don't think gaming will ever be able to uphold a company as large as Sony by itself, but once Sony get through their protracted restructuring, the fact that most divisions are now profitable should lead to a recovery.