Sony shows no sign of wanting to pull out of the gaming market. Sure they slashed 8000 jobs, but notice that the gaming section were not affected.

And btw a company doesnt need to have the best selling console in order to make money.

tuoyo said: I understand you love Sony but that is no reason to ignore reality. Sony themselves have said they are slashing tons of jobs. They have announced massively reduce profit forecasts. The financial reports for the gaming division since PS3 came out have been showing massive losses (despite profits from PSP and PS2 but these are now seeing lower sales). You can do all the calculations you want but those are revenue. Has nothing to do with profits. Anyone (apart from Sony fanboys) can see Sony is facing difficult times. Sony themselves know it. I don't think PS3 is going anywhere as suggested by a few in the media but to pretend things are rosy for Sony well that aint reality

There's few global companies around that haven't cut costs, reduced staff and lowered forecasts.  Sony are simply hurting more as their major business model is one that will be most hurt by the recession.

Current economic events are out of any single companies control, and Sony will respond as best they can.  But when you're selling expensive electronic goods to a consumer based with cheaper options and less money you're not in the best position really.

 

tuoyo said: I understand you love Sony but that is no reason to ignore reality. Sony themselves have said they are slashing tons of jobs. They have announced massively reduce profit forecasts. The financial reports for the gaming division since PS3 came out have been showing massive losses (despite profits from PSP and PS2 but these are now seeing lower sales). You can do all the calculations you want but those are revenue. Has nothing to do with profits. Anyone (apart from Sony fanboys) can see Sony is facing difficult times. Sony themselves know it. I don't think PS3 is going anywhere as suggested by a few in the media but to pretend things are rosy for Sony well that aint reality

• You're talking to someone who's known as one of the sites biggest 360 fanboys.
• The job losses in SCE have been minor so far and the profit forcasts are for Sony as a whole rather than SCE
• The Xbox 360 was showing losses too, such are the difficulties of starting a new generation.
• Revenue has everything to do with profits. You can't have profits without revenue.
• I never said that the PS3 didn't have problems, I was saying that they have been vastly exagerated that is all.

@marciosmg: Thanks!

 

 

What is this?

Is the X360-fanboy Squilliam trying to comfort Sony fans by sucking their dicks because there have been so many negative Sony threads??

My only worry if Sony axing some of there internal studios, just hope that never happens. However Sony have some beats coming internally ie GOW 3, Uncharted 2, GT5 etc so hopefully those can pay for all the internal devs, well mostly. Also for 1st party Sony get a lot more money per game sold right?

Yeah! Take that CNN!

Squilliam said: tuoyo said: You can do all the calculations you want but those are revenue. Has nothing to do with profits. Revenue has everything to do with profits. You can't have profits without revenue.

Yes you can't have profits without revenue but you can have tons and tons and tons of revenue and no profits but rather loads of losses.  A company with for example $10bn of revenue and $3bn of losses is not in a very healthy state. despite the fact its revenues are high as heck.  That's the problem many of the car manufacturers in the US are having.  huge revenue but no profits.  Contrast that with the most profitable car company in the world - Porsche which has much much lower revenues but high profits. 

 

tuoyo said: Squilliam said: tuoyo said: You can do all the calculations you want but those are revenue. Has nothing to do with profits. Revenue has everything to do with profits. You can't have profits without revenue.    Yes you can't have profits without revenue but you can have tons and tons and tons of revenue and no profits but rather loads of losses.  A company with for example $10bn of revenue and $3bn of losses is not in a very healthy state. despite the fact its revenues are high as heck.  That's the problem many of the car manufacturers in the US are having.  huge revenue but no profits.  Contrast that with the most profitable car company in the world - Porsche which has much much lower revenues but high profits.

I know that... Besides you're missing the massive glaringly awesome sparkly point which is; they don't have to do jack to earn that revenue. That means it can offset any losses as it doesn't cost them much if anything to actually earn it.

 

It all depends on what currencies production is paid in. They manufacture in China. The Yen strengthened 12% against the Yuan (Chinese currency), but it strengthened much more (20-65%) against the dollar, euro, British Pound, AU dollar, CA dollar etc, which are the currencies they sell the most consoles in.

The only way they aren't getting affected by the Yen's strength is if they pay for manufacturing in dollars or Euros, which doesn't seem likely to me considering Sony's declarations to investors.

 

Nice thread.