The only way I see them hitting that 11 million mark in that time frame is with the rumored $399 model.  I would think that would have to happen before christmas to make a huge effect.

I don't see how they can do that. According to the report, they were still losing money in production at the pre pricecut price.

I agree they would lose quite a bit of money, but they are actually in better shape when it comes to their game division. They lost almost $300 million that quarter when microsoft lost $1.9 billion (not counting the extended warranty charge then about $800 million). It really depends on how fast they can cut costs. The $499 prices has to hurt them but those 60gb units were already manufactured last quarter (I'm guessing there so I may be wrong)

If they keep the price at $499 during the entire FY07 they aren't going to come close to hitting that 11 million mark

Their projected loss for fiscal 08 was only around $500 million for the game division though. They've blown through half that already in one quarter.

Very true.

It must also suck to be in a situation where increased sales, leads to increased losses (hence my "crazy" argument about selling less PS3s - but for a profit). Ahh well, guess they just don't care that much - rest of Sony can carry them for now.

And yes - no comparison to MS. But then again, MS make ridiculous amounts of money for doing nothing. Losing $1bn for Sony is a big deal - for MS --> drop in ocean.

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@FishyJoe - I guess they expect to make a profit (software?) in the 3rd quarter (Xmas). That price cut is going to hurt though (another million PS3 sales = extra $100m pure loss.. minus money earned on peripherals/games).

If they can sell 3m over Xmas (Nov/Dec - which I doubt they can), that leaves 7.3m for the other 7 months.

July is half done -  180k in the first 2 weeks. Maybe 400k for the month.

That leaves 6.9m for 6 months -  or 1.15m/month (just under Xmas sales levels).

(then again, all their figures are "sold to retailer/shipped" rather than "sold to consumer").

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They either have a major price cut brewing (as rumoured) - or are very, VERY hopeful. Without a price cut, I'll be impressed if they can sell 500k/month in the "off" months - leaving them 4m short of their overall target.

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(it is surprising that the PSP figure is so low - with the redesign coming out - and the PS3 figure is so high...). 

Sony are crazy for not changing their shipment goals... absolutely nuts... No matter what they do I cannot see any fathomable way that they can sell that many units by the end of this fiscal year... no way in hell.

It's just going to look worse at the end of future quarters now.

I think they are smart for not changing the goals actually, I think it could of significantly damaged consumer confidence at this point. I know it would have made me cringe for them.....

I saw a clip last night of Oneda (2nd highest officer in Sony) and he did not seem very enthusiastic about the game division at all.

Sony keeps delaying the inevitable... Do they think the investors are happier this way? Any worthwhile investor can see through their bullshit...