http://www.sony.net/SonyInfo/News/Press/200806/08-080E/08-080E.pdf

Quote"

In the Game segment, the two key drivers of new growth are non-game content and services in tandem with enhanced network capability.  Sony also expects to achieve profitability in this segment in the fiscal year ending March 31, 2009, a significant year-on-year improvement due to hardware cost reductions and an enhanced line-up of software titles for PLAYSTATION 3.  Key Game initiatives are:

1. Expand content and services available on the network platform

2. Continue to expand the PS3 customer base through the strength of Blu-ray Disc

3. Accelerate PS3 sales through upcoming key franchise software titles

4. Continue PS3 cost reduction initiatives

"EndQuote

My take:

1. Hardware cost reductions must be fully in effect if they are projecting a positive operating income in the game division - maybe for both PS3 and PSP (if PSP is sold at a loss).

For the year ending March 31, 2008 - they lost USD 1.245 Billion Dollars

That would be a dramatic turnaround

2. I wonder what they mean by "non-game content" - movies and music on PS3? Any ideas?

For the Quarter (1Q) ending Jun 30, 2008 - it would be interesting to see if the game division sees some profit or much reduced loss.

If it does, then it is definitely possible to see a positive operating income for the next 9 months after that.

I just hope that by the time the PS4 comes out--Sony will be in a better position,in terms of flexibility with the hardware; a $299.99 and $399.99 price point.

So they are counting on a 10 Trillion dollar increase on BRIC? (Half the world's population) in 2 years? Interesting.

Sorry, but this line: "In the Game segment, the two key drivers of new growth are non-game content and services in tandem with enhanced network capability."

says to me: HARDWARE AND SOFTWARE aren't making money CRAP CRAP CRAP CRAP CRAP CRAP CRAP.

Anyone else?

My take:

Sony dropped the ball, and Nintendo picked it up. Very pleasing.

Any idea what non-game content is?
How is new growth going to come from it?

In financial statements, new growth generally means REVENUE growth.
What kind of items are they going to sell in the "non-game content" and services?

Any ideas?

It means stuff like their new Movie service on PSN.

I see. I guess they'll want to charge appropriately for that.

But if it is only movies (and/or even music), I wonder how much revenue growth they are projecting?

Unless they plan to charge for premium services on PSN?

Are there comparable services for PSP?

Well How many Consoles in total Have sony Produced already (Not Shipped)...

From my understanding, Sony have produced approx 5 Million more units then they have shipped as of lsat finantial year. (This is Only Hypothicle as I am roughly estimating off of what Sony Claimed they were manufacturing per month, less what they actually shipped).

If they cut down production this year, and as those above 5 miilion where on last financial years losses, any sales of those 5 million will be pure profit on this financial years statement.

So this does not nessisarily mean Sony will be making profit on each console... Just their overall yearly statement. But again, this is just a hypothicle thought.