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BengaBenga on 21 June 2008
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starcraft said:
BengaBenga said:
Sony lost 1.2 Billion last year and a lot more the year before. The PS2 is slowing down significantly. Sony has a tough year ahead in terms of profit. Especially if the console keeps selling better, but Sony doesn´t deliver their own games. SCE business plan is losing on the console but making money on the games. But where are the games? Sure MGS will gain Sony some licensing money, but the big bucks have to come from their own studio's.

It was already clear that there won't be a pricecut this year, but the comments from Stringer make it obvious that the company is done with SCE's financial problems. That should be the main concern in this topic, instead of the nitpicking about Blu-Ray, which won't benefit SCE, cause it's a different division.

From reading between the lines of the Sony CEO it's clear that the decision to stop HS2, Eight Days and Getaway came from higher up than SCE. That must be worrying.

SCE FY 2007:
http://news.vgchartz.com/news.php?id=1155

Its quite possible Sony won't make any money directly from MGS4, if the licencing fees were sacrificed as part of the exclusivity payment.

I don't know. To my mind, I still think Sony will cut the PS3's price in November. I don't think they are going to be willing to just take an MS price cut on the chin. Too much userbase could be lost.

 

 

The thing is that SCE is bound by Sony to the new strategy of making profit. SCE will have a very hard time to explain to the mother company and the shareholders why the PS3 saw another pricecut that goes directly against the strategy of making profits on the Computer and Entertainment Division.

Remember that for the shareholders only the profits are important. For all they care the whole C&E divison gets sold, if that's better for their value.

If you add to that that the results for PS3 have been far less than expected I think a PS3 pricecut in this Financial Year is out of the question, whatever Microsoft does. Sony is not in the business of beating Microsoft. It's in the business of making money.