Woudn't that be pretty expected less than a year into the new generation? Margins on the hardware are going to be tight, so profitability from just selling consoles won't really give good margins until year 2 or even 3. Game has made about a 6% return, translate that into profit margin for a PS4 sale (without a game or PSN+ subscription) in the USA and that's a $24 profit per console. I don't think Sony's getting that kind of margin on each console just yet, and factor in bundling of a game and still keeping that $399 price the margin is pretty much gone, so the profits are coming from elsewhere. Eventually Sony should be able to achieve a reasonable margin per PS4 and that will give Game a good return relative to other divisions.

So the MC division is taking a large write down, which means the loss is not as awful as it looks?

Btw where can we see the net loss number? I see operating income = -$760m (~85B yen)

suprised that they cut it with just 2 million.. with the rate that the chinese smartphone makers are on the rise it still optimistic from Sony. Great specs, good design and most importantly affordable prices.. they can't compete with that .. At least they replaced their mobile chief..

Alright. For some reason the pic doesn't work for me

They should have sacked him not just move him to another division....