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Forums - Sony - SONY FY END MAR 2009 – PROJECTIONS – PS3 STILL LOSING MONEY BUT DIVISION PROFITABLE

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It is hard to shed anything but crocodile tears over White House speechwriter Patrick Buchanan's tragic analysis of the Nixon debacle. "It's like Sisyphus," he said. "We rolled the rock all the way up the mountain...and it rolled right back down on us...."  Neither Sisyphus nor the commander of the Light Brigade nor Pat Buchanan had the time or any real inclination to question what they were doing...a martyr, to the bitter end, to a "flawed" cause and a narrow, atavistic concept of conservative politics that has done more damage to itself and the country in less than six years than its liberal enemies could have done in two or three decades. -Hunter S. Thompson

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FY END MAR 2009 – PROJECTION SUMMARY

 

PS3 Hardware = ($660)(*) million LOSS

PS3 Software = $318(*) million

PSP Hardware = $128(*) million

PSP Software = $156(*) million

PS2 Hardware = $117(*) million

PS2 Software = $231(*) million

 

TOTAL = $290(*) million PROFIT

 

In conclusion, even with PS3 hardware suffering from a loss ($660(*) million), overall the game division will most likely see a profit.

 

So it was not too much of a stretch for Sony to be confident that their game division will be profitable this fiscal year.

 

The only concern that I have with this projection is the PSP software projections, due to the declining attach ratio and overall software sales for the past years.  Increasing hardware sales of the PSP does not seem to translate into higher software sales for the console.

 

If the PSP software turns out to be off by a lot, then overall profit will probably be lower by $50 to $100 million for the FY end Mar 2009.

 

DISCUSS.



I suck at understanding these. I can understand what the profit and loss are, but I'd really like to know how to understand the attach ratio more and how to put all of this information in a way so that my brain can just say "oh, so this goes here and this obviously effects this" etc.



This will only take a moment of your time. *steals your watch*

@swyggi

The attach ratio is the ratio of software vs hardware.

I had a new term called "annual attach ratio". This ratio represented the number of games that is purchased by the console owners for the year.

So for example, at the FY end of Mar 2008 - the total PS3 shipped according to Sony was 14.74 million units. The total shipped software units was 57.9 million units.

Therefore, for the FY end Mar 2008, 14.74 million PS3s bought 57.9 million units of software or 3.93 software unit each console.

Note to other readers:

Please do not argue shipped vs sold to consumers. It is not "relevant" in these calculations. Numbers are based on shipped units. Consider that Sony's customers are the distributors and retailers.



I think Sony will ship 13-14 million PS3s without price cut.



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@shanbcn

If Sony shipped 12 to 14 million as you project, profit will be down due to PS3 hardware losses - offset by an increase in PS3 software profits.



bumidan said:
@shanbcn

If Sony shipped 12 to 14 million as you project, profit will be down due to PS3 hardware losses - offset by an increase in PS3 software profits.

I think they can ship 13-14 million easly and without price cut which will mean less losses if any. We should wait for 1st quarter results.

 



shanbcn said:
bumidan said:
@shanbcn

If Sony shipped 12 to 14 million as you project, profit will be down due to PS3 hardware losses - offset by an increase in PS3 software profits.

I think they can ship 13-14 million easly and without price cut which will mean less losses if any. We should wait for 1st quarter results.

 

13 to 14 million is not too much of a stretch.  I definitely agree with you that it is very possible.

PS3 seems to be increasing its sales momentum.  And the 10 million quote by Sony seems to be underpromising so that they can surprise their investors with more positive news in the future quarters.

 



bump. no comments? maybe we are all numbered out?



wow thats alot of numbers, i guess if the numbers are correct then your prediction will come true.