FY END MAR 2009 – PROJECTION SUMMARY
PS3 Hardware = ($660)(*) million LOSS
PS3 Software = $318(*) million
PSP Hardware = $128(*) million
PSP Software = $156(*) million
PS2 Hardware = $117(*) million
PS2 Software = $231(*) million
TOTAL = $290(*) million PROFIT
In conclusion, even with PS3 hardware suffering from a loss ($660(*) million), overall the game division will most likely see a profit.
So it was not too much of a stretch for Sony to be confident that their game division will be profitable this fiscal year.
The only concern that I have with this projection is the PSP software projections, due to the declining attach ratio and overall software sales for the past years. Increasing hardware sales of the PSP does not seem to translate into higher software sales for the console.
If the PSP software turns out to be off by a lot, then overall profit will probably be lower by $50 to $100 million for the FY end Mar 2009.
DISCUSS.
