zackblue said: @whatever
On the contrairy they might have made a profit with psp sales and ps2 sales, and software for all the systems. |
Per Sony's annual report, 2003 was the best year in the gaming division's profits in the PS2 years, peaking at 112.7B yen (~$1B).
Since that year, that division's profits went down per subsequent annual reports. And so far in 2007 thru the first two quarters, the gaming division total losses are (125.9Byen).
Sales of PS2 and PSP have dramatically increased over the year, but the low sale prices mean that profits, while increasing dramatically as well, won't matter as much as getting having the PS3 sell for a loss.
It's amazing that PS3 was able to sell more in this quarter than in the past 3Qs. But if costs have not been driven out of the systems, by well over the $100 cut, losses for this quarter could be dramatic at well. That is, say the 2M PS3 sold between April and September lost $300 a piece. That would account for $600M loss (this being the variable part, fixed parts such as the factory, employees accounts for the other part of the loss). If cost cutting has dropped out $200 of cost (in the last quarter) and then the price drop of $100, means that the losses would still be $200 a piece. Times the 4M sold for the quarter and the PS3 losses go UP to $800M.
Hopefully for Sony's sake, costs are going down dramatically as well. The shareholders will find out in February. Will they be like Pyrrhus and exclaim: 'One more such victory and we are lost'?
Of course, MS must be feeling a bit of the same. Keep a bit of profits right now, especially with their games selling well in the US, versus completely losing Europe if they don't do some price cutting fairly soon.