Its Not $1.7 Billion, its 3 Billion losses

http://www.nytimes.com/2009/01/23/technology/23sony.html?ref=technology

$2.9 billion is the operating loss, $1.7 billion the net loss.

wow restructuring costs in Electronics is going to cost them about as much as the Games division is costing them...
Fin services costing them twice as much as Games

Bleak times ahead
although software sales forecast remains unchanged?
And what exactly do they mean by "Competition" in Economy and Competition"? Does it mean not selling as many units as anticipated?

How can you tax losses ?

Another thing I wonder is how step will be the decline of PS2 hardware and software compared 2007.
PS2 is the cash cow of SCE division at the moment.

Yep, it says no changes from October forecast.

Yes, it means that not only is the recession lowering sales, competition is also stronger than they expected.

I still believe Sony will pricecut in 2009.

We'll see if I have to eat my words, I guess.

From what I understand, they get tax refunds on excessive taxes it turns out they paid.

You can already see the updated hardware sales forecast (software is unchanged for some reason).

PS2 down 42% from the previous year, PSP and PS3 up 8%.

Thanks for the slides, NJ5. They didn't lower the software forecast, but Sony did decrease the PSP hardware projection (16m to 15m) and the PS2 hardware (9m to 8m), so evidently VGChartz has been correct in showing decreased hardware sales for both.

PS3 hardware estimate is still at 10m, which is a good sign. Although I should point out, everyone here thought they would increase the forecast later on, and clearly that's not going to happen...

Right now, the most imprtant thing for Sony is to get the production cost down for the ps3, and for the system to start making money. A $50 price cut, isn't impossible, but look atthe math...sony sold approx 10 million (for easy math) units last year, so a $50 cut is $500 million in loss revenue, and probably all of the profits on each ps3 sold. So let's say sony can sell 3-4 million more consoles, due to a price cut...that's another $150-200 million in lost revenue. So you're now looking at $650-700 million in loss revenue. Now how can you make it up...selling more games...charging more for services. With Home being FREE FREE FREE...as you get more users, the maintenance cost goes up...in getting more servers online. So ps3 owners had better start buying a TON of Home crap, and more games, otherwise...yike!