I expect sony to make tremendous amounts of money with the upcoming services for the PS3 platform.

These include, video DL service, and a jump in the amount of content available on the playstation store.

Also software sales should improve as with PS3 "trophies" releasing soon, people that own a 360 wont be picking the 360 version simply because of achivements improving software atleast slightly.

@ leo-j

If the volume of PS3 software and services increase dramatically, then Sony Game Division will have a good chance of reaching profitably.

The 1Q (Apr 2008 to Jun 2008) will be a good indicator, especially if PS3 hardware costs keep coming down.

In the 4Q (Jan 2008 to Mar 2008), Sony shipped(approx. sold):

PS2 Hardware: 2.35 million units
PS2 Software: 24 million units
PSP Hardware: 3.41 million units
PSP Software: 14.7 million units
PS3 Hardware: 2.32 million units
PS3 Software: 16.9 million units

Revenue: 4.029 Billion
Loss: 280 Million

What would your predictions be for the 1Q ending Jun 2008?
To achieve profitability in the quarter - that is make up at least 280 Million Dollars, Sony has to sell at least 1.25 to 1.5 times more hardware/software on all divisions - if you assume that there have been some PS3 hardware cost reductions (eg. 10% to 20%)

1.  yeah, the downloadable content, things like movies downloaded, games, or whatever will have a much higher profit margin than the games  that you can get at the store.  I am really pleased that sony is finally moving onto a more stable strategy than what they seemed to take when we were looking at things only a year or so ago.

2.  As far as the blu-ray disc, i'm still pretty bullish on this.  Bd player prices have gone down, Stringer says that they may get as low as $200 by the end of 2009.  Also, in order to increase sales of the blu ray, HDTV prices will also have to come down.  If anybody is interested, google OLED TVs, which have gotten some press recently as a lot of the people in the consumer electronics market think that these TVs will eventually be cheaper than the LCD or plasma HDTVs as well as brighter and smaller.  A better/cheaper HDTV will push  Blu-ray up. 

3.  Nothing new here, as the PS3 or any console gets a bigger slice of the pie they should get more love from the developers.

4.  Nothing new here either, as all 3 consoles will get cheaper to make over time.            

@ dallas
Wow! taking from a previous thread.. cool..

You seem to know about Sony pretty well. I do have an unrelated question coz it seems kinda cool.

From Sony

Quote:

"Sony's unique position in electronics and entertainment allows us to offer compelling network services. As an example of our potential, this November, Sony Pictures Entertainment will offer one of the most highly anticipated films of the summer, "Hancock", exclusively to all internet connected BRAVIA LCD TVs in the U.S. before it is available on DVD. This film will be distributed to Sony customers directly to their televisions outside conventional distributors and without the need for any set-top box. This is an industry first.

EndQuote.

Does any have BRAVIA LCD? How does this work? Is there a separate channel for downloads?

Do Bravia TVs have Hard Drives?

I am curious. This is kinda cool.

Maybe its like the XBox Samsung rumor, where some sort of device is built in the TVs already.

Let me know. Thanks.

Well, the idea is either download it to a hard drive or from an ethernet cable, streaming the movie directly to the TV. I have no idea which will be pursued though.

Most likely. But Sony mentioned Bravia LCDs - WITHOUT set top box - which I thought to mean that there is no ADDED peripherals needed to download/watch the movie.

They mentioned Hancock in November before the DVD is released, so I figure maybe some of those TVs already exist?

@dallas the next Michael Pachter

Question:
Does PSP hardware make money for Sony?

I wanted to use some assumptions for my analysing of Sony's numbers.