ymeaga1n on 01 July 2008
| talkingparrot said: No one should expect any price cut till next year. The article written above for uneducated people in the field of stocks (myself included) can easily be led to believe something that is far from the truth. Aside from all the massive Xbox 360 fanboys in here- someone mentioned a very important fact- EVERYONE NEEDS TO REALIZE SOMETHING: The report is talking about FISCAL losses. Key word- FISCAL. April 06-March 07, and FY08 is April 07-March 08. This doesn't mean that PS3 is still being sold at a loss. All this reinforces is, at one time the PS3 was losing a ton of money and that they went from losing 2 Billion on production to 1 Billion (and that could be an average cost too, the PS3 didn't reach the break even mark till January, who knows where its at now, but I am guessing its at 350 to produce a console). The gaming division will start seeing a profit in 2009. Both Microsoft and Sony are probably both regretting putting in a price cut, and no one can blame them. Both companies have copious amounts of money to recoup. |
I think what you're suggesting is that because the production costs were in previous years, they aren't relivent because the console is generating a small profit now? That's bullshit.
Companies evaluate projects (ps3) on their initial costs (~3 bill loss) and their expected cash flows over the life of the project (hard to say if PS3 has generated any cash flow cause sony doesn't report it seperately). It might have been 3 fiscal years ago, but it's not like they are ignoring that amount and just looking forward to profits now.
