If they made a PS4 on December 31, that would have to go into the financial report somewhere because it is a company asset.

Again, like already mentioned in another thread, the 4.2mio sell-through number announced by Sony is not the number of PS4s made by the end of 2013. Unless they had a magic way to teleport PS4s from the manufacturing plants into the homes of end-users (or they halted production in mid-December, equally unlikely). So there are only two ways to solve the problem:

1. Sony lied and 4.2mio actually IS the number of manufactured units.

2. Sony made about 4.6mio PS4s (and, consequently, 3.2mio PS3s given the 7.8mio number) by end of 2013.

I assume they will announce 5 million mark soon.
OR wait for Japan release to say even a bigger number to show they did really above their expectation.

Yeps, you are. It's 2M for Q3. 4.7M handhelds were sold in 2013.

There is a reason why the PC division is up for sale. lol!

I still don't understand why they are keeping the TV division though...

As someone who grew up in cleveland....

sometimes that's enough.

First of all, selling the Vaio part of the division will result in a loss. Nobody wants to buy a PC factory in Japan so the only value is in the Vaio brand name. You'll have to find somebody willing to take the risk for all the workers that come with the brand name. Not surprisingly, not even the Chinese (Lenovo) bit so there is this JIP entity (probably a state supported entity that tries to keep the employed in their jobs using taxpayer money). Nonethless Sony cannot just dump the Vaio people into this new construct and call it a day, they have to (at least partially) fund it. Hence the loss incured while actually selling something (what you get from the sale is less than what you pay for creating the new structure).

The situation with the TV part is more dramatic as a lot more workforce is invovled. Shutting down factories and firing workers is almost impossible in Japan. Hence the reason why Sony has been floundering around the past years with heavy losses. Granted they can shut down some factory at some point (because they slowly lost workers by retirements and not hirng new people). That can take 10-15 years until you are left with just enough workers and factories with which you can make profit again. Until then, it would have meant probably another ten years of high TV losses for Sony. However, that takes too much time so the second worst solution is to  outsource the whole TV business into its own brand. As with the Vaio part, this costs a lot of money up front. Once that new TV company is going, Sony can either decide to further subsidize it (technically almost the same situation as with just keeping the TV business and paying the losses on and on), or simply let the new company rot in some way ("You're on your own now.."), hoping the public backlash isn't immediately connected with the Sony brand name.

Yup.

I'm confused what this is trying to say and why it's refrenced to me.

Even when a product is sold out, company warehouses are pretty much never bare outside of there being some halt in production.  This is the case even when using JIT production methods.

Produced PS4's likely won't be listed anywhere by itself that you can point out and just listed in the assets total at wholesale price under stock.

So it doesn't need to be either.

I'd guess Sony produced significantly more then 7.8 PS3's and PS4's.

Oh and before people try and compare the software numbers to Vgchartz numbers... it's worth noting they are counting downloadable sales as well.

PS4 SOLD 4.2m... shipped more than that.

PS4 sold at Dec 28th 4.2m... shipped more than that... to be fair what they produced in late 2013 is what they shipped more.