MikeB on 21 June 2008
@ BengaBenga
That's why companies develop strategies. Usually you have to choose. In this case it's Profit vs Marketshare/Brandname.
I'm pretty sure Sony overestimated the PlayStation brandname.
I'm pretty sure Sony overestimated the PlayStation brandname.
I don't think this has anything to do with it. If Sony sold more PS3s their investment losses would have been greater.
But I think Sony's upper management must have been shocked by Ken Kutaragi's vision for the PS3. He and his team made decisions which are great from a technology perspective but imposes great financial challenges for the short to mid run. Kudos to him though, else the PS3 would have been a far less interesting long term product with regard to potentials. Sony upper management would have focussed too much on short term advantages to please shareholders.
But everything is meanwhile under control, Sony's profits overall tripled and Sony's gaming devision is set to make a profit this year. It will take many years though to recoup all the investments poured into the product.