"Blu Ray, Blu Ray, bla, bla, bla, bla. I want some freaking more games Sony! Like er...RPG, where the heck are they?!"

You act like Sony can just snap their fingers and BOOM! They get the get the new Dragon Quest! You already know things don't work that way, Onna. Sony has no control over what 3rd parties are going to do.

As has been explained to you many times, these "wish lists" are worthless; if these wishlists were accurate at predicting sales the PS3 should have outsold the XBox 360 in North America and be close to the Wii in sales ...

One thing to consider is that (even though Sony posted a profit in the division last year) consumer electronics is a division that Sony has been struggling in for years, and their recent 'successes' may be short lived. Sony continues to price itself as the 'priemium' product even when its products are not as good as their competition which (often) lowers sales and marketshare for Sony, and Chineese manufacturers are producing and selling electronics at prices which is eliminating the healthy margins that most electronics companies have lived on for years. Consider that Sony's profit last year was heavily influenced by the sales of Sony's Bravia TV which is selling for (at least) $1000 less today as they were last year; the manufacturing costs have probably not dropped that much, and the main reason their prices are so low is you can buy a similar sized 'off-brand' tv for $500 to $1,000 less than a Sony TV.

Profits from Blu-Ray may not come like Sony fans expect because both the HD-DVD and Blu-Ray groups are spending a ton of money trying to win this 'war'. You can only lose so much money on hardware, reduce licencing fees so far, or allow so many bargin-hardware manufacturers before all the profits from this venture are gone.

They're losing money on hardware and developing expensive games which don't turn a profit... I doubt they can be profitable this generation.

In the past 1.5 years the gaming division has already lost half the money they made in the previous 10 years. The PS3 is really hurting the games division.

I think the telling sign will come in the ongoing quarter report, out in January. In the previous quarter they took the hit of writing down the value of the PS3s they have in stock, so this quarter they shouldn't lose a huge amount of money. However, if they do, I don't see how they can turn a profit from the PS3 at all.

Did anyone else see the word "breakeven" in there. I have a feeling this means that they will reach the price point where they aren't losing any money on the console at that point. I don't think they are implying that they will have earned back all of their losses by then... I think they are saying they will turn the corner at that point and anything beyond that will be profitable. They discuss multiple moves the company is making to conserve capital to fund losses until that point so that further points to that. Regardless of your fanboy alignment, MS and Nintendo's successes have put a serious dent in Sony's ability to turn the PS3 into a cash cow. It may now be near impossible to reach a point where enough profits have been made to offset losses before we see the next Microsoft gaming console.

Is this without Price cuts?? Cause if it is... Sony might be in for a rude surprise. That's a long span of time and alot of things can happen even if the costs of the Technology used to build a PS3 goes down.

and how much was development cost for the hardware? seems like you didnt take that into account. Huge up front investment that needs to be recouped by profits during lifetime. Essential part to any break even analysis.  just cause it made money does not mean it broke even after 1 quarter.

Sony as a company are making money, so I don't care.

 If they get "Xbox 1" losses and no significant improvement from the multimedia (Blu-ray) side, they will exit the game business. You can't run a division at a loss because the rest of your company is profitable. If the Playstation brand's reputation and its big exclusives go, it will not even be worth having a "PS4".

 You should, stockholders don't like companies to maintain money losing ventures, since it threatens their dividends

If it is indeed true that Sony is losing as much on the current SKUs (40/80) as they were on the launch consoles, this is worrysome for Sony. That would mean they can ill-afford another pricecut for quite some time. Though they are picking up steam with new software titles and Blu-ray continues to look pretty solid, Microsoft may step in and do another healthy price cut next spring. If they do, that might force Nintendo to make a move as well and the large price delta will come back. I'd like for Sony, Microsoft, and Nintendo all to make a healthy profit and stay in the business as it is good for consumers to have price and quality competition (hardware, games, innovation, etc.). I can't wait to see Sony's and Microsoft's financial reports for their next quarter...