How can it be in a death spiral when it is still selling as much as it is? I think the main part of them not selling as well is that they do not advertise at all. Well actually I haven't actually seen a videogame related commercial for like 3 or so months. I still think it is amazing that the most expensive console is selling decently in this recession we are in. I think that it definitely not in a death spiral and can be pulled around to selling better.
sales DO NOT equal profit.
The original xbox sold okay but they pulled it beause it wasn't profitable
The ps3 has cost sony over 3 billion $$ and wasted all the ps2 profits.
Sony has NEVER MADE $$$ on the ps3.
Bad financial planning
I did not know that we were talking about profits as opposed to how it was selling. And by now they should be making some money if not breaking even on every one sold. They also make money off of software sales and peripherals. And hasn't the gaming division been profitable lately?
sony's game division barely made any money last quarter (4 million $$) during the busiest shopping season of the year --- not good!!
The quarter before that they lost 379 MILLION $$. Which means NO THE PS3 IS NOT MAKING A PROFIT AND HAS NOT MADE A PROFIT- no matter how many software sales they had.
The ps2 and psp make $$ , BUT that BARELY covers all the ps3 losses
SOURCE - http://www.videogamesblogger.com/2008/11/03/sony-reports-playstation-379-loss-in-q2-2008-but-ps3-sales-up-to-nearly-17-million.htm