Please elaborate on that.

It's no secret that parts of Sony has been struggeling. They need lots of wins and need to hope that their risks pay off. I could easily be wrong, but this doesn't seem like a cheap venture for them and it is fairly risky. 

It's also no secret that most of Sony's divisions are improving, and that Sony is out of its long period of losses. BTW, gaming isn't their most profitable division, not even close, and also, R&D for Morpheus should be ongoing right now, so the financial impact will be now, not when it launches. And since Sony's gaming division is making a profit I don't see the issue.

Yes, improving. That doesn't mean it's still not a struggle. They still have a long way to go. The risks are necessary, but this one seems overly risky from my perspective. It might hit the stars, it might flop like a fish out of water, I don't see much middle ground for it. Actually, with how most business's work, the money is spent at a point, then reflected on during financial results usually broken up into quarters. They have to make a plan and breakdown for the spending that they do and it is accounted for during that time, however the results of the spending come when the plans come to fruition. Kind of like a loan, where you have to prove that you need and have use for the loan but need to pay it back, generally by a certain time or at least start paying it back by a certain time with a minimum payment. Similar idea. We won't know how it goes till the device is released to the public. It is a risk, there is likely a good deal of money involved and any loss isn't good for Sony's situation, which is exactly like you said... recovering and that is exactly why it could a slippery slope. They still don't have great profit margins and could easily slip into the red again if they aren't careful. Hopefully that doesn't happen.

Gaming is one of their most successful divisions right now.

Improving, as in, their back in the black. That's no longer what I'd consider a struggle. Even though it'll flop, R&D costs will have incurred in the current quarters (just like they did with the PS4, R&D costs incurred in the quarters before launch, not the quarter it launched) and they are evidently not big enough to make Sony go under or anything of the sorts. Even though it flops, Sony will handle it just fine, as their current financial situation is much better than what you make it out to be.

@bolded, no it isn't. Gaming is Sony's 6th most profitable segment, only ahead of Mobile Communications and Home Entertainment & Sound.

Read it again buddy. 

Anyway, as I said, the profit margins aren't great at this point. They are indeed making profits, but they have only just pulled themselves out of a nasty unprofitable time. I'm not saying they are in a bad place, but they are in a place where they cannot become complacent and relax. 

I'm not going to explain the whole R&D thing again. In essence though, during that time they are digging a whole with it, other profits might cover that, but it's when it is released that it matters. So if they end up hitting a slump and it doesn't take off, it could be very detrimental for them, or any company but lots of companies aren't teetering between profit and loss. They are not making large profits at this point so things could sway fairly easily. 

I didn't say most profitable. I said MOST SUCCESSFUL. The playstation brand has massive brand power, likely more than any of their other divisions. Plus, besides the Vita they haven't amassed many failures, plus they are a consistantly profitable division. If all of that is not success, I don't know what is. 

Peace dude, I'm done with this convo.

No to both of those. The PS3 incurred way bigger losses on Sony than the Vita ever did. I think it lost them somewhere in the realms of 5 billion USD. And Gaming has not always been profitable, actually, gaming overall has lead to a loss for Sony, as if you add their profits from its inception to this year, you're still negative by something like 1.2 Billion.

Even though you said most succesful I still wouldn't say it's correct, their financial division (insurance etc.) made about 5 times more profit than their gaming division last quarter, and you can talk brand power all you want, but gaming will never be more important for Sony than their financial division is. They also have their movies division (Spiderman, James Bond, etc.) Which I'd argue is biger brand wise, and it certainly is bigger profit wise. Bottom line is, if gaming dissapeared for Sony, they'd be alright, if their financial division dissappeared, that would be the downfall for Sony, guaranteed.

Love the idea.