As I predicted, they didn't change their 11 million forecast, and as I predicted, the given reason was "HOLIDAYS HOLIDAYS HOLIDAYS!".

Crazy... They are forecasting to ship 4.5 times more PS3 than in the first semester...

I was listening to the Q&A session on the financial forecast, and there were two interesting things said there:

- They expect profit on the games division in 2008
- another thing which I don't remember now, I'll listen to it again and then post it

xD at DonWii ^_^

BTW, someone in the newspost said that sony is loosing money on the PSP. This isn't true, Sony made a profit from the old PSP (hardware-wise), and the PSP slim has even cheaper hardware. Software sales are very low, but they do bring in a bit of money. The PS3 is the only damn thing that is making huge losses.

 Interesting, could I have the source of this information ? Thanks in advance .

Keep in mind that Sony had a LOT of 60 gig units on shelves at the start of the quarter. I'm assuming they took a writedown on every single one -- sold or not -- to a price at where it is at least break even or possibly even a slight profit. I'm sure they have done the same with every 80 gig out there as well. For all intents and purposes, they would be "taking the loss" on every single PS3 sold during the quarter or in the channel during the quarter so that going forward there would be no further major losses. MS did the same thing with the RROD charge. Take it now and going forward all repairs are technically "free"... In both of these cases, it makes forward results look better than they really are...

So this is confirmation that the PS3 is still selling undercost.

According to the financial report, they took the hit of reducing per-unit inventory price in this quarter, obviously in order to reduce later losses or to be able to post profit. Many of the PS3s shipped lately were produced long ago at high cost, and the financial report says they wrote down inventory, which contributed to the high losses in this quarter. It\'s a similar situation to Microsoft writing down the cost of fixing RRODed consoles in their 2007 report, even though these costs will be happening during other financial periods too. A little financial trick so to speak.

What I don\'t know is what value they\'re counting each PS3 in inventory for. If it\'s inventoried at recommended retail price, it means they took the whole hit in this quarter and they\'ll appear to break even on that inventoried hardware in later fiscal periods.

All of that says nothing about current production cost though. But from listening to the Q&A session from the conference, I believe they\'re not expecting to break even on hardware production yet.

IT EATS MONEY (SEE AVATAR)