| bumidan said: @ Ail I'm not quite sure I understand your points. The analysis is for profits and losses are based on Sony's numbers. Costs associated with running these business are already reflected in these numbers. The numbers we are trying to analyze are NET profits or losses. 1. The game division numbers are reported for everyone to see. Revenue and losses are there. This includes all the costs associated with the gaming division, including all the ones you've mentioned. 2. Game development in general should already be reflected in the game division numbers. If not, where would Sony put it? You can't just leave out figures in your public statements. Also, the analysis incorporates a long enough time frame to include development costs and average them out. This evens out in the medium to long term. If Sony is developing games every year, then every year they would have software sales to record that were developed the previous year, so everything will balance out over time. 3. As mentioned in previous posts and in No. 1, net profit/loss takes into account everything, including marketing costs. 4. I have never seen MMOs ever mentioned in any Sony financials. Therefore the logical conclusion is that the figures (sales/costs) for these are probably not "material" in the financial sense. Unless it is in a separate division or company all together. I hope that clarifies some of your questions and concerns. |
The financial statements of course include all costs, but as far as I understand, you're making certain assumptions on how the profits/losses are distributed between the different platforms based on the sales numbers and the total profit/loss of SCE. Your current analysis seems to assume that fixed costs are divided equally between all platforms, though I might be mistaken since I haven't crunched the numbers myself. I'm pretty sure that the statements we have gotten from Sony about the profits/losses per platform do not include fixed costs, only manufacturing, i.e. the statement that they are aiming for profitability with the PS3 most probably refers to the sales margin, not operating margin. That's why I'd be interested to see how the numbers change if you change how you distribute the fixed costs.
