bumidan on 08 July 2008
@jkimball
Again, Net Loss does not just mean component costs, but ALSO marketing, advertising, etc.
So I think it is fair to associate all those to the PSP launch.
For example, if you it costs you $5 to produce a widget and $6 to market it, what is your cost for the widget? Your total cost would be $11. If you sell said widget for $10, then you are losing money on this widget, UNLESS you suddenly stop "marketing" it.
You can argue whether the marketing for PSP should be allocated to just the "launch year PSPs" OR to all PSPs sold including future PSPs. However, that is more of an accounting theory argument rather than a financial statement analysis argument.
