SONY LOSSES, especially PS3 – New & Improved Analysis - End Mar 2008

[bumidan]

Game FY Ending Mar 2007

Revenue: 8,617
Profit (Loss): (1,969)

PS2 Division (HW = 14.20 million, SW = 193 million)
Operating profit = $528(*) million

PSP Division (HW = 8.36 million, SW = 54.1 million)

Key Sony Quote:
PSP operating income increased due to cost reductions

I took this to mean that PSP hardware is now breaking even or even a slight profit. In the previous year, we allocated a $5(*) loss per console. For this year, I assumed a small profit of $2(*) per console.

Therefore, the profit allocated to this division is $125(*) million.

PS3 Division (HW = 5.5 million, SW = 13.2 million)

Key Sony quotes for the PS3:
PS3 price lower than production cost
PS3 launch costs

For the PS3 software, I’ve also assumed a $2(*) profit for software. Therefore, the profit for the PS3 software division equals $26(*) million.

The PS2 and PSP profits equal $653(*) million and the PS3 software at $26(*) million, then the attributable LOSS to the PS3 hardware division, including launch costs equal $2.648(*) Billion.

This works out to approx. $481.50(*) LOSS PER PS3 CONSOLE.

Summary:
($528 million PS2 + $125 million PSP + $26 million PS3 software less $2.648 Billion loss on PS3 hardware) = ($1,969) million loss = ACTUAL REPORTED SONY FIGURE.