| kowenicki said: Overall these results arent that bad for a financial perspective. At least they aren't losing in the majority of sectors now. Profits are still hard to come by though in pretty much all sectors other than the usual devices and financials. Playstation is a bit of a concern. Shipment numbers are obvioulsy big but profits are modest really. The big problem is of course Mobile. The numbers arent good and the losses are insane. Kaz has a peoblme here as he pretty much put his repuatation on the line with mobile. If it fails, he will be gone. |
Woudn't that be pretty expected less than a year into the new generation? Margins on the hardware are going to be tight, so profitability from just selling consoles won't really give good margins until year 2 or even 3. Game has made about a 6% return, translate that into profit margin for a PS4 sale (without a game or PSN+ subscription) in the USA and that's a $24 profit per console. I don't think Sony's getting that kind of margin on each console just yet, and factor in bundling of a game and still keeping that $399 price the margin is pretty much gone, so the profits are coming from elsewhere. Eventually Sony should be able to achieve a reasonable margin per PS4 and that will give Game a good return relative to other divisions.
So the MC division is taking a large write down, which means the loss is not as awful as it looks?
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