Well, the ecnonomy is in bad shape and Sony talks a little about the impact of the recession on them:

http://www.businessweek.com/globalbiz/content/oct2008/gb20081023_427869.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis

Since they already posted a profit during Q1, and if they post one for Q2. Then i wonder how they are going to lose money this FY in the games division

Griffin said: Since they already posted a profit during Q1, and if they post one for Q2. Then i wonder how they are going to lose money this FY in the games division

How do you know Sony posted a gaming division profit in Q2, it's not out till next week.

TWRoO said: Griffin said: Since they already posted a profit during Q1, and if they post one for Q2. Then i wonder how they are going to lose money this FY in the games division How do you know Sony posted a gaming division profit in Q2, it's not out till next week.

PS3 costs less to manufacture now

has a 65nm CEll and 65nm RSX

There is no way SONY would lose money on Game division since PS2/PSP will turn them a profit along with PS3 which is now profitable

the 160 gig is supposed to contain 45nm CELL so expect SONY to make huge profits from it

SONY will sell atleast 500m in SWs this Fall riding on Motrstorm 2/resistance 2 and LBP

There is no way SONY will post a loss on gaming division for th Q2

lwhatee said: TWRoO said: Griffin said: Since they already posted a profit during Q1, and if they post one for Q2. Then i wonder how they are going to lose money this FY in the games division How do you know Sony posted a gaming division profit in Q2, it's not out till next week. PS3 costs less to manufacture now has a 65nm CEll and 65nm RSX There is no way SONY would lose money on Game division since PS2/PSP will turn them a profit along with PS3 which is now profitable   the 160 gig is supposed to contain 45nm CELL so expect SONY to make huge profits from it SONY will sell atleast 500m in SWs this Fall riding on Motrstorm 2/resistance 2 and LBP There is no way SONY will post a loss on gaming division for th Q2

While I see your first few points (they made a small profit Q1 and not much [that we know about] has changed)

I will argue against your third bit... yes the PS2 and PSP will help turn a profit, but no the PS3 is certainly not profitable.... Think about it.

PS2 software, albeit slowing down, will alone make more than the measly $50million profit they made in Q1.... PSP software is surely profitable too... PS2 hardware is profitable, PSP hardware is likely profitable, and PS3 software could go either way, but won't affect it much if it is a profit/loss as I suspect it is roughly even.

So, some hugely profitable things there, and some still profitable if not so hugely, and yet they only made $50mil last quarter.... what is dragging the number down? PS3 hardware is my answer.

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Last year Q2 was their least profitable quarter by the way, losing almost $1billion... but for the most part I suspect it was the PS3 price cut in late summer, which hasn't happened this year so Q2 should be roughly equal to Q1.

TWRoO said: Griffin said: Since they already posted a profit during Q1, and if they post one for Q2. Then i wonder how they are going to lose money this FY in the games division How do you know Sony posted a gaming division profit in Q2, it's not out till next week.

Did you see that part of his Post TWRoO??

Dgc1808 said: TWRoO said: Griffin said: Since they already posted a profit during Q1, and if they post one for Q2. Then i wonder how they are going to lose money this FY in the games division How do you know Sony posted a gaming division profit in Q2, it's not out till next week.   Did you see that part of his Post TWRoO??

Well I did see it, but it was the "wonder how they..." bit I was responding to, it is an odd thing to say, after all, posting a profit in Q1 and 2 doesn not mean it can't be cancelled out in 3 and 4 (although 3 is usually a profitable quarter even in hard times)

It was also the uselessness of the statement at the same time, almost as if he had gone further and said "well if they post a profit in all 4 quarters, I wonder how they will lose money this FY"

That was not very positive news. Saying that kind of stuff during a financial conference call send investors running.

But, I think that it was unreasonable to think there would be a profit for the full year. Probably status quo for their stock. If they are trying to get to a profitable state this could mean a price cut is probably out for at least 6 months.

TWRoO said: Dgc1808 said: TWRoO said: Griffin said: Since they already posted a profit during Q1, and if they post one for Q2. Then i wonder how they are going to lose money this FY in the games division How do you know Sony posted a gaming division profit in Q2, it's not out till next week.   Did you see that part of his Post TWRoO?? Well I did see it, but it was the "wonder how they..." bit I was responding to, it is an odd thing to say, after all, posting a profit in Q1 and 2 doesn not mean it can't be cancelled out in 3 and 4 (although 3 is usually a profitable quarter even in hard times) It was also the uselessness of the statement at the same time, almost as if he had gone further and said "well if they post a profit in all 4 quarters, I wonder how they will lose money this FY"

I thought i was pretty clear in my line based on what they said.  If they post postive for Q2 then its pretty clear they will make lots of cash this Q3 like they they did last Q3.

Now based on that how do you think they could lose cash in their games division if all their games and massive sales of the PS2 and PSP are going to happen this year and early next year with KZ2 coming out.  I thought my line was pretty clear that a price cut may happen =)