that and pay underage school girls to bend over.

 Are you purposely trying to get banned?

I know I didn't list any reason.  I usually do, I'm just tired of listing them, sorry.  I agree wholeheartedly with the highlighted portion of your statement.  I don't think the console's success rides on Sony's profit margin at this point except for potential price drops.  I hope that Sony has enough business sense to drop their prices as rumored.

I just think all the parts are there.  Most non-microsoft studio games seem to go to the PS3, and Sony has better in-house exclusives.  DMC4 and GTA4 wouldn't worry me if games like Bioshock also went to the PS3.  Why Take-2 chose 1 and not the other is beyond me.  Capcom also hasn't announced Dead Rising for the PS3 which also worried me a little.  Still, though, I think the games will be there.  Sure, I wish they would hurry even though I personally have plenty to play with Elder Scrolls because that game is ridiculously long (and Motorstorm when I need a break), but I understand for the success of Sony's console they need fewer delays and to get games out. I think Home has great potential, little big planet as well.  The Home beta needs to come out soon because I'm tired of checking that page. 

I think the PS3 is a great example of what a launch console should be.  Everything you need is included  (even free games/demos on the PSN, better than demo disks, worse than Wii Sports).

Very important third party exclusives are still there, and I hate continually naming them, but MGS4 and FF13.  Now, if those go multi-platform maybe it will spell the end.  There are others that are multi-platform but not on the Wii, which I think is key to differenting the 2 HD consoles from the Wii.  I believe if not all , then at least are going to succeed by default, so I'm not so worried about the Wii's success.  I'll be getting one as I think a lot of PS3/360 owners will do or have done.

Microsoft not performing at all in Japan is a key.  If all the Japanese developers go to the Wii it won't matter, but I think some will still favor the PS3 over Microsoft. Europe is Sony's strongest market considering they developed it, and I think there is potential there to catch microsoft as soon as early next year.

 But, as I've said, the price is still the issue.  Although I think, and most people at least agree on this, the PS3 is the better value as a piece of electronics but most people aren't willing to spend more money to play what they think are mostly the same games.  I think Sony will differentiate themselves later this year with games and Home, but a price drop that is not countered would catch them up very quickly I think.  Now, obviously, if M$ follows with a price dro, it'll be interesting.

I just think people are overreacting to sales dropping after a launch.  This is not the first time I've said the reports of the demise are greatly exaggerated, and it probably won't be the last. 

http://www.sony.net/SonyInfo/IR/financial/fr/viewer/06q3/

Where are you getting your information from?

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.

FishyJoe... go back to my link to sony's financial reports go to game Q3 FY06 see how much of that debt is inventory and then come back here and say if sony should be worried. As I said before sony might actually lose 800 million this fiscal year.

BTW who started the rumor all Sony consoles would start slow?

Yes, the PSX started slow because it was a completly new brand. That always happens to new brands in the video game market - look at NES, Genesis/Megadrive, XBox or DS sales - they ALL started slow

 The PS2 instead sold huge since it´s launch - you don´t believe? just click it for yourself. But yes the second year was better for the PS2....but not that much.

the PSP started slow and sells even slower today (even in Japan the numbers are getting lower again... and yes I know it sells decent).

So we have 3 Sony consoles so far (excluding the PS3) and ONE of them really started slow... because it was a new brand. So could we just give this discussion up as a rumor?

I'm looking at the financial reports and inventory levels in Dec 06 was a .7% decrease from Dec 05. Inventory levels are close to unchanged from the previous year. Seems like normal inventory float having no influence on earnings.

The Q306 loss was $455 million

Q2 loss was $369 million.

Q1 loss was $233 million

Unless they make a gigantic profit in Q406, there is no way in hell the loss is only going to be $800 million.

What do you think inventory is? Inventory always the amount of good's or manufactured parts that can be turn around and assembled/sold for a profit. It is normally viewed as another type of asset.

Comparing these losses to sony's earnings last year is meaningless. Without a doubt the sales eclipsed the operating costs because sony wasn't launching a new system. All of this is picking on smal points. As I said above all costs are pretty much choice based and most likely are made to ensure a continual growth in profits. Operating cost for the gaming division not only includes just the PS3, it includes all those first party devs making games and additions to the XMB, advertising, testing, R&D andmany other things. Sony is not heading for a fall anytime soon. Not in "ANY" of their divisions, so whatever points people bring up about size, actual net income after operations and tax is taken out , really doesn't amount to much.

 I have yet to hear anyone prove that sony is in trouble. Just alot of assumtions based on number people apparentley do not understand.

What part of inventory levels remaining constant don't you understand?  They will have probably have the same level of inventory next year. That makes it net neutral in terms of profit/loss. That doesn't mean it's not an asset, but assets don't contribute to profit/loss.

You can calculate whatever you want. But the official statement from Sony is that they will lose around 250 billion yen in the gaming division. Could they be wrong, maybe. But it's illegal for them to lie about their estimates, so that is their best calculation. 

I'm only repeating Sony's official statements. You can draw whatever conclusions you want.