Yeah they sell for $600 and cost $800 so that means a $200 loss per system that sells (assuming the cost $800). So I was thinking if they sold 3M more like they wanted it would be another $600M loss.

Anyway, that will be on the next financial report I suppose.

Nintendo's and Sony's fiscal years run from April to March, so Q3 is the Holiday quarter. Microsoft's fiscal years runs from July to June, so Q2 is their Holiday quarter.

 Yup and sony knows this.

 http://www.businessweek.com/innovate/content/may2006/id20060501_525587.htm?chan=innovation_game+room_top+stories

"Sony Corp. today announced details from its fourth quarter and full-year fiscal results. For the quarter ended March 31, 2006 the company lost 66.53 billion yen (around $569 million) on 1.85 trillion yen in total revenue."

 "The results for Sony's game division during the current fiscal year will not be good however, as the company ramps up investments for the PlayStation 3, which launches worldwide this November. Sony expects the segment to hemorrhage 100 billion yen ($871.6 million) in operating losses during the business year as it prepares the PS3 for launch."

I can't help but think that this Thread is a "OMG look how much trouble sony is in". I think the sheer fact that they know, were planning on, and still willing to lose 800 million+ worth of profit, should just show you how serious they are concerning their direction in the gaming arena. 

Between May 2006 and Oct 2006 it got much worse. They revised their estimated losses to 200 billion yen. Then in January 2007 apparently they revised again to somewhere below 250 billion yen. So we're talking roughly $2 billion US in loss.

And that's with fairly decent PS2 sales. What happens if PS2 sales really start slowing?

http://www.bloomberg.com/apps/news?pid=20601101&sid=akC4ohHFOXS4&refer=japan

Tokyo-based Sony in January forecast losses at the games unit to exceed its October forecast of 200 billion yen ($1.7 billion) for the year ending March 31, because of price cuts to fend off the Wii. The loss will be less than 250 billion yen, Sony said.

Whether they were expecting the loss initially or not, you have to assume that they figured it would be made up in hardware and software sales soon after.  Digging themselves close to a billion dollars in the red AND not having strong sales as of yet was most likely not part of their long term agenda.  I guess they can only hope that the money bag is deep enough to last until the story starts turning around.

Hmm. I don't know. If they were really serious about this, I think they'd plan to lose a billion a year for 5 years, like Microsoft. Honestly, a company should be willing to lose 15 or 20 billion dollars over three complete console generations if they're really serious about this.

Anyways... I'm not sure... But I think losing over 440 million a quarter adds up to more than 870 million in a year... Sure enough, PSP and PS3 are performing well below expectations from a year ago.

Read my last post, the loss is somewhere above $2 billion US.

The losses w/o great sales are a disaster. Sony is losing money and market share and I am not sure how they can turn it around. 2B is a lot to lose for any company, and Sony already has a lot of debt so they can't affort to lose too much...

At least they are making money from their movies. I willbe giving them $7 to see spiderman, so that should help pay the interest on their loans for about .0001 seconds...

What's must be scary for them is that they sold a lot of PS2 systems and games. So lets say the PS2 made $1 billion profit for argument sake. That means the losses for the PS3/PSP would be $3 billion.

expected losses. Seeing how they were making ps3's during that time at a loss. I believe they are going to stop losing money on the production of ps3's during midtime of this year. This was the beginning of the ps3 manufacturing, in which most people still believe they are taking the same losses. They were supposed to have a million in production at a loss of 400 $ per each one by spring launch (which they delayed). Seeing how they made probably around million or 2 doesn't make these numbers actually that bad

This is actually surprisingly low number, I expected somewhere in the 2 billions. But it appears that they are going to lose money around 800 million-1.2 billion on ps3.