Looking back at our previous financial model for Sony, below are the numbers you can use to predict your Q2 Sony profits/loss:

The model is fairly accurate with a 10% to 15% variance so far.

The one thing that is likely to change are:

Profit/Loss per PS3 HW

Profit/Loss per PS3 SW - maybe increase to $2.5 or $3

Post your predictions now.

@bumidan
There are too many factors to predict so I would give a very high level view that imo profits will likely go down. This is because of larger PS3 shipments of the new 80GB model in anticipation of the holiday, PSP/PS2 software and hardware dropping, more worldwide marketing expenditure from Sony for their upcoming exclusives, more R&D in their continual race to cut costs and more first party development costs.

Lets see...

Less PS3 Software will be sold, PSP has virtually no first party releases compared to games like Patapon, God of War, etc., so that will drop even lower then it's low total and PS2 shouldn't rise at all. PS3 hardware should sell around the same, which is same amount lost - and PSP hardware should drop a bit.

Overall, I predict 186 million in losses.

Well Q2 End Sep 2007

Sony did lose: $34million

 So you're predicting that PS3 hardware will sell about the same, and the loss per console is about the same still?

I agree somewhat that PS3 HW loss won't change too much, partially because of the lower US$ (offset a bit by higher Euro).  So even with some cost reductions, the net change in cost reduction will not translate much into US$ - which is what the currency of this model is.

186 million loss is fairly high, IMHO. - though quite possible.

i do agree PS2 HW is dropping, though PS2 SW sales are not dropping as much as hardware.

there may be hope yet for Sony.

My lousy random prediction:

Probably adjust up a little, with higher per unit profits.

Predicted Profit = US$61 MILLION

My lousy random prediction:

Probably adjust up a little, with higher per unit profits.

Predicted Profit = US$61 MILLION

OOPS, double post, and I mean Q2, not Q1

I thinjk the first post is a bit off. I think Sony gains more than 2 euros/dollars on each game sold. But there are other costs as wel besides the loss of ps3 hw, like developping games, the cost of marketing etc.

Btw, does anyone thinks Sony is purposely lowering PS3's sales (= shortages in US) this quarter to reduce their losses? It is very stupid imo if this were the case, but it's still a month before the new model comes in and there are already shortages.

@zuhyc

Profit per unit is "net profit" - so it takes into account all costs.

Also, Sony basically predicts to ship/sell 10 million PS3 units.
Q1 = 1.56 million
Q2 = ?
Q3 = christmas = probably 5 to 6 million
Q4 = ?

Basically, if every quarter besides holiday sells about 1.5 to 2 million, Sony will meet its own shipment/sales figures for PS3.