@ leo-j
If the volume of PS3 software and services increase dramatically, then Sony Game Division will have a good chance of reaching profitably.
The 1Q (Apr 2008 to Jun 2008) will be a good indicator, especially if PS3 hardware costs keep coming down.
In the 4Q (Jan 2008 to Mar 2008), Sony shipped(approx. sold):
PS2 Hardware: 2.35 million units
PS2 Software: 24 million units
PSP Hardware: 3.41 million units
PSP Software: 14.7 million units
PS3 Hardware: 2.32 million units
PS3 Software: 16.9 million units
Revenue: 4.029 Billion
Loss: 280 Million
What would your predictions be for the 1Q ending Jun 2008?
To achieve profitability in the quarter - that is make up at least 280 Million Dollars, Sony has to sell at least 1.25 to 1.5 times more hardware/software on all divisions - if you assume that there have been some PS3 hardware cost reductions (eg. 10% to 20%)
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