PS3 a faster money sink than the Xbox? I can see why no price cuts soon.

[NJ5]

Billy Gun said:
Just two stupid questions here:

1. When Nintendo, MS and Sony shows up their numbers of their gaming division, is the cost of a next-gen development included? I mean, I supose their spending some $$ on research on a next-gen (wii 2, xbox 720 and Ps4), those money "lost" apears on the actualy numbers "reports"?

2. As you can read on the link, Sony lost 18% of it's sheres value (in 6 months), 2% last friday. Aren't those losses worse than lelling Ps3 for U$ 300 now?

"The shares fell 2.3 percent to close at 5,100 yen on the Tokyo Stock Exchange. They've lost 18 percent this year, compared with an 8.1 percent decline by the benchmark Topix index. "

http://www.bloomberg.com/apps/news?pid=20601101&sid=a5KY_KmOXF_I&refer=japan

1- Yes, everything the gaming division does is included there (or at least, it's supposed to be). But I don't think they're spending a lot of money in the next-gen yet.

2- That loss is supposed to be the reflection of everything which happens to Sony's business, PS3 included. But I think it's mostly due to the worsening economy. Sony makes a lot of products which might suffer in sales if the recession gets worse (e.g. luxury items like HDTVs). The falling US dollar doesn't help either. Many companies' stock fell because of those two things.