Sell less, lose less. Makes sense.

They might have even made a profit had they sold no PS3's at all!

 I agree, but I hope that Sony realizes that these lower losses will be nothing compared to the profit they will miss out in the future if they dont get their act together. 

They probably would have. The PS2 and PSP would bring them millions.

fixed

Frankly, if I was a shareholder, I'd be quite pleased. They could have lost 3 or 4 billion. What would frighten me is how they plan on selling (and by that they mean manufacturing) 12 million this year, presumably also at a loss. If those don't sell to create a good momentum, I'd be quaking.

No, you didn't get the last memo. Now they count units sent to retail, not units out of the factory. So they actually believe they'll be able to shove 10.29 more million PS3 down the retailers throats in 9 months. Kind of like Nintendo is doing with the Wii (except those actually get sold to consumers).

 Is the PSP not profitable?  or what...

I dunno, you're the mod!  You tell me!

well, it's something we all know, but it's downright hilarious to hear it from a Sony official! i commend him on being honest though.

i agree it's not that stupid of a quote. just... a little stupid, from a PR standpoint. but again, honesty is a virtue.

now i wonder how they'll be writing off those millions of PS3 stuck in their warehouses, waiting to depreciate in value. after all, if you can't sell them at $600 now, you could only sell them at a lower price later on. if it cost them $800 to make them at the beginning of the year and only $650 now, those stuck in warehouse effectively has cost them $150 each (not quite that much, more like $75 each).

creative accounting anyone? like, if as the Sony spokesperson said, they "lost less money", and it's not just about the fewer units they produced, then they HAVEN'T been honest with their accounting. which is... scary. of course, when they eventually clear their warehouse, they'll record big losses (if depreciation isn't done right, which is what I suspect), so SCE likely has at least another quarter of two of bad results on this basis.

The PSP does make profit its practically all profit when they sell them.They sell at $220/£150(I think) and it costs about (this is a guess) $75/£37 because its been out 2years and it never cost that much to begin with.