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

[Ail]

You can't go through financials and try to compute a loss per PS3 units sold as it just doesn't work that way.

The gaming division covers a lot more than the making and selling of hardware and collecting licencing fees....

You forget whole entities like SCEE, SCEA that employs thousands of developers and covers things as varied as first party development studios ( many of which have yet to release a PS3 title so they can't have been making a profit last year), MMORPG ( stuff like Vanguard, SWG in the end get reported under SCEA and the gaming division and those can't be making much of a profit either).

Then you ignore the whole marketing budget which is probably very significant.

All those costs are not dependant of the number of PS3 units sold so you can't compute a loss per PS3 sold when you include them....

In the end I would not be surprised if the yearly cost to run SCEE + SCEA wasn't over 500+ million a year and until Sony releases more first party titles you have to know those organizations are running at a loss...