bumidan on 09 July 2008
| Grampy said: Great posting and a lot of work, thanks. My question is what kind of a business model is this? In a rough estimate how much profit or loss has Sony made in its entire history of video game consoles? How long will a division be able to serve as a black hole for money, or more diplomatically, grossly underperform before stockholders and or management rebel and pull the plug? It would seem that now and for the immediate future, Sony would be better off without a game division. It's all well and good to say that the PS3 played a role in the development or spun off the cell technology and Blu-ray etc. but like saying that NASA's moon program led to Mylar and Freeze Drying; it would have been a lot cheaper to just develop those things on their own. |
Most likely, the game division will be there for a while.
I will make a new thread soon showing how easy it is for the game division to be profitable again. Watch out for it.
All the PS3 losses are sunk costs, so no use in worrying about it. Going forward the game division should be in the black all the way, until maybe the PS4 shows up, which is probably another 5 years away. Or if they have brand new hardware coming soon.
Also, it may be possible that the Sony Online Entertainment (MMOs) may come under the game division fold soon. If they are profitable, that will make game division numbers look a bit better.
