Comparisons with MS and Nintendo aside, Sony is doing just fine. The gaming division is turning a profit, and (esp. without the price cut), they're probably making plenty of money these days.

* The PSP seems to be on a major upswing this year, and the PSP Go probably will further that.
* The PS2 probably hasn't sold at a loss in eons, and it still sells plenty of software.
* The PS3 is due for another chip redux this year (from 65/65nm to 45/45nm), and will likely begin to turn some decent profits, if it hasn't begun to already from the dropping costs of blue laser diodes, and other, previously much more expensive, components.
* The PS3 is due for a truckload of exclusives this FY.
* Blu-Ray is continuing to push ahead, and Sony has a significant share of the Blu-Ray Association cut of BD drives and discs.

Looks pretty good for Sony Computer Entertainment, going forward (although I think the Blu-Ray money is actually posted in a diff division).  Some of the profits that SCE turns may be "hidden" as well, in that SCE might do something like buying BD drives for the PS3 from some manufacturer, and that goes down as a SCE loss... then the BDA gets $30 per drive... and Sony gets some cut of that back (for some reason I think its $9 of the $30), which is reported as profit in a different division.

It sounds strange, but of the 3 current hardware manufacturers, if you were to consider the gaming/entertainment divisions only, I would actually say Microsoft is in the most worrisome position, going forward. I don't find that daunting, however. MS has deep pockets, and the benefits of staying in the console race, and keeping the MS name in the livingroom, outweigh any losses they may face from their entertainment division R&D costs, losses from holiday pricecuts and 3rd party software bundles, etc.

I always say that the PS3 isn't doing that bad so much as the Wii and 360 are doing great (much better than expected).
Also if they are losing so much money on the console wouldn't sony be a bust now if they were selling Wii like numbers so it's probably a good thing they are last

It's doing normal to slightly bad, BUT keeping in mind its the most expensive console and it's only trailing 15-25k/week to the the 360 which has consoles upto $200 cheaper

I'd say the 360 is in a bit more trouble than PS3 (or will be soon)

PS3 is doing fine so far. PS3 won the format war for Sony. Nintendo should be more worry about next generation than anyone else.

* How is the PSP on a major upswing when the sales are down considerably YOY?

* How does that indicate good fortunes for the division as it has been propping up the PS3 somewhat and the hardware/software sales for this platform are disappearing off the map?

*Are they even likely to hit 45nm on both the RSX and Cell when they have never done both chips at the same time? Furthermore its likely the royalty payments rather than the chip manufacturing costs which are hurting them at this time. Chip shrinks are over-rated anyway, for example you can buy a 250mm^2 8800GT with 512mb of ram for close to $100 after newegg margins, shipping, packaging, board partner costs/margins, TSMCs margins and Nvidias ~30% margins on the chip itself. The chips are cheap, its the I.P. which is expensive.

*So is the Xbox 360 and Wii.

* That significant number quantified into actual dollar terms is worth what exactly?

How exactly are Microsoft in worse shape than Sony? Their total Xbox Live paid downloads are up 73% YOY, their gold membership are pulling in over half a billion annually and their royalties from software shipments are increasing substantially too.

How exactly is SCE in a 'peachy' condition when their primary home console still loses money to this day and is being propped up by the good work they did last generation? Thats 'loses money to this day in spite of software revenue from consoles sold'

I hear lots of people waiting to buy a PS3 when the price drops.

I don't hear anyone say they are waiting for an XBox price drop before they buy one.

Of course MS will match a PS3 price drop, but I don't think they'll get the same benefit Sony will.

RSX was shrink to 45nm on march so nvidia said.  and sony its not preachy yet doing better what they were doing.

from loosing 300 million then turning a small profit. if the chips are shrink production cost profits are likely to happen.

microsoft actually it's in price point that they are the cheapest, they are cheaper than PS3 Wii PSP and about the same the DSi. while their sales are decent, but if they price cut it wil have a smaller impact.

remenber the 99$ Gamecube price cut? and even 199$ 360 dropped fast, going for 169$ in some place in EU.

I hadn't heard anything about a 45nm RSX. Since it would be big enough news for me to hear about, I doubt it because I haven't heard any mention of it.

You know the idea is to be profitable, not break even or lose money for all eternity right? Cutting the price pushes the profitability frontier further into the future.

Microsofts ASP is higher than the Wiis in the U.S. for which I know of the ASP numbers therefore the Xbox 360 is not the cheapest console in that country at least. I also know that Microsofts revenue per console per year is higher than both Sony and Nintendo due to Live.

I remember the $99 Gamecube, I also remember how people like to oversimplify subjects to push their agenda. People don't pay for Live or buy HDDs or buy Premium Xbox 360s whenever the PS3 is mentioned in the same sentence. Then people have to buy a Premium and they have to buy Live and Wireless when the PS3 is mentioned in the same sentence in a 'should I buy X console' thread.

Toshiba to manufacture PS3's 45nm RSX chips by 2009, 65nm chips by next month
Nov 27, 2007

Toshiba to manufacture 65nm chips by next month, 45nm chips by 2009

Japan's Nikkei financial paper has just disclosed Toshiba's upcoming plans for their RSX chips for the PlayStation 3. According to the report, Toshiba will begin manufacturing 65 nanometer chips by next month (December). As the readers will recall, the 40 GB PlayStation 3 that was launched last month makes use of the aforementioned chipset.

By comparison, the 20 GB and 60 GB SKUs are running on a larger 90 nm chip. The smaller component is reportedly one of the factors in the console's price drop (currently US$ 399), and lower power requirements, albeit it does lack backwards-compatibility.

Further along, Nikkei also reports that Toshiba plans to manufacture an even smaller 45 nm RSX graphics chips for the PS3. No details have been announced regarding this, although the report states that the electronics manufacturer will begin production by March 2009.
http://ps3.qj.net/Toshiba-to-manufac.../49/aid/108503

sony it's know to reengineer they console every six months to save on cost. we shoud have smaller motherboard ps3 by september october =).

microsoft entertaiment divison includes zunes and windows mobile license, unless you can proof me microsoft it's actually making a huge profit that will recoup 7 billion lost in the xbox 360 it's hard to call the console a success.

but of course microsoft it's  funding it whole gaming divison with windows/office money.

seriously only nintendo it's doing good, the rest. it's just fighting.