Dusk said:
Teeqoz said:
It's also no secret that most of Sony's divisions are improving, and that Sony is out of its long period of losses. BTW, gaming isn't their most profitable division, not even close, and also, R&D for Morpheus should be ongoing right now, so the financial impact will be now, not when it launches. And since Sony's gaming division is making a profit I don't see the issue.
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Yes, improving. That doesn't mean it's still not a struggle. They still have a long way to go. The risks are necessary, but this one seems overly risky from my perspective. It might hit the stars, it might flop like a fish out of water, I don't see much middle ground for it. Actually, with how most business's work, the money is spent at a point, then reflected on during financial results usually broken up into quarters. They have to make a plan and breakdown for the spending that they do and it is accounted for during that time, however the results of the spending come when the plans come to fruition. Kind of like a loan, where you have to prove that you need and have use for the loan but need to pay it back, generally by a certain time or at least start paying it back by a certain time with a minimum payment. Similar idea. We won't know how it goes till the device is released to the public. It is a risk, there is likely a good deal of money involved and any loss isn't good for Sony's situation, which is exactly like you said... recovering and that is exactly why it could a slippery slope. They still don't have great profit margins and could easily slip into the red again if they aren't careful. Hopefully that doesn't happen.
Gaming is one of their most successful divisions right now.
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Improving, as in, their back in the black. That's no longer what I'd consider a struggle. Even though it'll flop, R&D costs will have incurred in the current quarters (just like they did with the PS4, R&D costs incurred in the quarters before launch, not the quarter it launched) and they are evidently not big enough to make Sony go under or anything of the sorts. Even though it flops, Sony will handle it just fine, as their current financial situation is much better than what you make it out to be.
@bolded, no it isn't. Gaming is Sony's 6th most profitable segment, only ahead of Mobile Communications and Home Entertainment & Sound.
