Sony lost half a billion dollars

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aka_aj03

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#1 aka_aj03
Member since 2004 • 5911 Posts

Sony has announced that it made a third quarter operating LOSS of $443 MILLION.  Does that number scared you?

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fuman3

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#2 fuman3
Member since 2003 • 602 Posts
no cause they pretty much projected the loss cause of the PS3. They loose like 150 to 200 per ps3 console sold. So i guess its a good thing. lol. They will make it up within the next 6 months with game releases.
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Flame_Blade88

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#3 Flame_Blade88
Member since 2005 • 39348 Posts
Not really, Sony will be making a lot more with blu-ray and towards the end of the year with PS3.
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Phoenix963

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#4 Phoenix963
Member since 2006 • 1006 Posts
WOW...thats.. alot of money. and they comfortably let it all go.. lol
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GerrywithaG15

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#5 GerrywithaG15
Member since 2007 • 999 Posts
no, theyll be fine, probably try even harder to make it a success now
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SnipeyMcSnipe

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#6 SnipeyMcSnipe
Member since 2006 • 2010 Posts
Gotta spend money to make money...d00ders
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Dogswithguns

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#7 Dogswithguns
Member since 2007 • 11359 Posts
WOW! Lots of money!!
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Ngon

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#8 Ngon
Member since 2004 • 2782 Posts

Sony has announced that it made a third quarter operating LOSS of $443 MILLION.  Does that number scared you?

aka_aj03

no lol

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callen3

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#9 callen3
Member since 2005 • 1289 Posts
i dont think they are going to ever make it out of the hole this time.
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VividScientific

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#10 VividScientific
Member since 2003 • 1871 Posts
Dosnt scare me..... but it should probably scare Sony.
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mikeslemonade

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#11 mikeslemonade
Member since 2006 • 3624 Posts
People seem to forget that Microsoft lost $4 billion with the xbox.  And with blu-ray Sony will gain it all back in no time.
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somesthetic

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#12 somesthetic
Member since 2004 • 3344 Posts
the government lost 8 billion dollars, and America didn't even get any PS3's out of it.
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Goku004

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#13 Goku004
Member since 2006 • 754 Posts
Off Topic: Apparently new information for GTA4 has been leaked...Some guy named Claude Speed is returning and it sets place in 2009....(can't create my on thread).
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Goku004

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#14 Goku004
Member since 2006 • 754 Posts
Oh and Claude Speed is the guy from GTA1 and 2.
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Sambo234

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#15 Sambo234
Member since 2003 • 547 Posts
the government lost 8 billion dollars, and America didn't even get any PS3's out of it.somesthetic
the gov't lost closer to a couple trillion... I'm not really concerned, this is less than I was expecting considering the loss on every console sony is taking.
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aka_aj03

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#16 aka_aj03
Member since 2004 • 5911 Posts
if that number is this large, what will happen if Sony lower the price of the PS3? You know that Sony already deciding to lower the price of the PS3 within this year, probably down by the holiday season. They are taking a risk... knowing that they probably will make this money up in a long run.
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callen3

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#17 callen3
Member since 2005 • 1289 Posts
People seem to forget that Microsoft lost $4 billion with the xbox.  And with blu-ray Sony will gain it all back in no time.mikeslemonade
sony is not microsoft....500million is a lot to sony
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deadlypencil

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#18 deadlypencil
Member since 2006 • 455 Posts

500 million loss for the company is very bad. if it was just a 500 million loss for their games divison it would be fine... but the fact that its a company wide 500 million loss that means the ps3 lost ALOT more then 500 million, it also lost enough to offset all the the movie and bravia sales ect.

When microsoft lost the 4 blllion over the course of the xbox it was only in the games division, the rest of the company made enough money to offset the loss.

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deactivated-61ff675e61178

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#19 deactivated-61ff675e61178
Member since 2004 • 12558 Posts
Sony reported a loss in only its games divison. On a whole, Sony still turned a profit due to other factors, including unexpectedly high sales of its Bravia televesions. Sony's stock has been continually going up since the launch of the ps3, actually, which just goes to show what Sony's investors think about the matter.
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-DirtySanchez-

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#20 -DirtySanchez-
Member since 2003 • 32760 Posts

no cause they pretty much projected the loss cause of the PS3. They loose like 150 to 200 per ps3 console sold. So i guess its a good thing. lol. They will make it up within the next 6 months with game releases.fuman3
yea when the console was released they said $200 loss for 20gb, and about $270 loss on the 60 gb, im sure the loss is gettin smaller allready and they have plenty of otehr products to recoup off of

 

EDIT: oops had that backward, its $270 loss on 20gb, and $200 loss on 60gb

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deactivated-61ff675e61178

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#21 deactivated-61ff675e61178
Member since 2004 • 12558 Posts

if that number is this large, what will happen if Sony lower the price of the PS3?  You know that Sony already deciding to lower the price of the  PS3 within this year, probably down by the holiday season.  They are taking a risk... knowing that they probably will make this money up in a long run.aka_aj03

Sony expects to be breaking even on the manufacturing costs of the ps3 by the holiday season, which is why they are also planning to cut costs by that time. 

The most expensive component of the ps3 is the Blu-Ray drive, and the cost of that component has been dropping drastically as it is being mass produced for ps3s and Blu-Ray standalone players.  This is why standalone player prices are being almost cut in half, and should be in the $300 range by the end of the year as well.  In addition to this, Sony is already cutting out the Emotion Engine from newer ps3s to cut costs, and are planning to outsource manufacturing of the Cell to Chinese manufacturers, which will lower expenditures even further. 

They were losing around $250 on the 20gb ps3s and $200 on the 60s at launch, and to cut $250 off of the price in under a year is a pretty big feat, though not entirely unexpected.

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DZBricktop

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#22 DZBricktop
Member since 2007 • 2914 Posts
Its not a loss, its an investment. Microsofts "loss" included the development of the xbox as well 2billion on createing xbox Live. All developers take a hit on hardware and make it up software down the road. Its nothing to worry about.
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mikeslemonade

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#23 mikeslemonade
Member since 2006 • 3624 Posts
Sony isn't in trouble.  Do you really think that Sony would think that everyone who buys a PS3 at launch would buy 10 games at launch and 5 games every month after that.  Sony expected this and they will counter it.   The $4 billion microsoft lost hurts more because it wasn't expected.   They didn't expect to win, but they didn't expect lose $4billion.  That's literally 2% the worth of Microsoft lost.   Sony is a $400 billion company and MS is $300 billion company.  MS does have more money because they're a software company, but they lost $4 billion and they will have trouble gaining that back.  Not to mention that MS keeps buy 3rd party games such as rare and GTA(multiplatform), so they will not make any money from the 360.  The PS3 and Sony will gain there money back because of blu-ray.
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deactivated-61ff675e61178

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#24 deactivated-61ff675e61178
Member since 2004 • 12558 Posts
[QUOTE="mikeslemonade"]People seem to forget that Microsoft lost $4 billion with the xbox.  And with blu-ray Sony will gain it all back in no time.callen3
sony is not microsoft....500million is a lot to sony

Did you know that almost every CE manufacturer (Samsung, Sony, etc.) generated more profit last year than MS? Sony is a very large company, and has its hand in many facets of daily living. They create everything from tvs to mobile phones, they own movie studios, create game consoles, hell, everything. To say that MS is oh so muhc larger than Sony is funny. Just because Bill Gates has billions of dollars, doesn't mean the company he created (and has since left) does. MS is losing money on so many fronts, its not even funny. Internet Explorer, Windows CE (windows for handhed devices) and other things have all failed miserable to compared to their counterparts like Mozilla and Linux. The only thing MS manages to turn a profit on is Windows for pcs, and that's just because they have 95% market share and almost all the software support.
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DZBricktop

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#25 DZBricktop
Member since 2007 • 2914 Posts
This topic turned into a "my dad can beat up your dad" debate? What a surprise.
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Thomas-Crown

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#26 Thomas-Crown
Member since 2006 • 30371 Posts
I think Sony had anticipated such a loss since Sony is not selling the PS3 at full cost.  
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kenshinhimura16

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#27 kenshinhimura16
Member since 2005 • 7009 Posts

Dont talk about economical issues if you dont understand how this works.

There are several kinds of companies. Sony belongs to a company that has to invest almost all of its capital after a certain period to develop its new stuff. Most of the technological companies have to do this. But most of them let other companies take the risk so that they can later buy rights to that technology after being certain that it has a future.  

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Timstuff

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#28 Timstuff
Member since 2002 • 26840 Posts
Not really, Sony will be making a lot more with blu-ray and towards the end of the year with PS3.Flame_Blade88
True. Blu-Ray royalties are going to help offset the hardware losses in the long run.
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itisa87

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#29 itisa87
Member since 2005 • 159 Posts
This topic turned into a "my dad can beat up your dad" debate? What a surprise.DZBricktop
I'm more suprise that you didn't see it coming.
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localbasketcase

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#30 localbasketcase
Member since 2005 • 160 Posts

[QUOTE="callen3"][QUOTE="mikeslemonade"]People seem to forget that Microsoft lost $4 billion with the xbox.  And with blu-ray Sony will gain it all back in no time.makingmusic476

sony is not microsoft....500million is a lot to sony


Did you know that almost every CE manufacturer (Samsung, Sony, etc.) generated more profit last year than MS? Sony is a very large company, and has its hand in many facets of daily living. They create everything from tvs to mobile phones, they own movie studios, create game consoles, hell, everything. To say that MS is oh so muhc larger than Sony is funny. Just because Bill Gates has billions of dollars, doesn't mean the company he created (and has since left) does. MS is losing money on so many fronts, its not even funny. Internet Explorer, Windows CE (windows for handhed devices) and other things have all failed miserable to compared to their counterparts like Mozilla and Linux. The only thing MS manages to turn a profit on is Windows for pcs, and that's just because they have 95% market share and almost all the software support.

 And to add to that Microsoft might be WORTH more than Sony but Sony actually HAS more money and a hit like this won't afftect them as bad as most people think.

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Ichigo_Ban_Kai

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#31 Ichigo_Ban_Kai
Member since 2007 • 849 Posts

[QUOTE="aka_aj03"]if that number is this large, what will happen if Sony lower the price of the PS3? You know that Sony already deciding to lower the price of the PS3 within this year, probably down by the holiday season. They are taking a risk... knowing that they probably will make this money up in a long run.makingmusic476


Sony expects to be breaking even on the manufacturing costs of the ps3 by the holiday season, which is why they are also planning to cut costs by that time.

The most expensive component of the ps3 is the Blu-Ray drive, and the cost of that component has been dropping drastically as it is being mass produced for ps3s and Blu-Ray standalone players. This is why standalone player prices are being almost cut in half, and should be in the $300 range by the end of the year as well. In addition to this, Sony is already cutting out the Emotion Engine from newer ps3s to cut costs, and are planning to outsource manufacturing of the Cell to Chinese manufacturers, which will lower expenditures even further.

They were losing around $250 on the 20gb ps3s and $200 on the 60s at launch, and to cut $250 off of the price in under a year is a pretty big feat, though not entirely unexpected.

what is an emotion engine? 

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#32 chacas
Member since 2004 • 633 Posts
The PS2 processor, i just googled it :) thanx google (and wikipedia)
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Hadoken_Kid

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#33 Hadoken_Kid
Member since 2006 • 1770 Posts
[QUOTE="makingmusic476"]

[QUOTE="aka_aj03"]if that number is this large, what will happen if Sony lower the price of the PS3? You know that Sony already deciding to lower the price of the PS3 within this year, probably down by the holiday season. They are taking a risk... knowing that they probably will make this money up in a long run.Ichigo_Ban_Kai


Sony expects to be breaking even on the manufacturing costs of the ps3 by the holiday season, which is why they are also planning to cut costs by that time.

The most expensive component of the ps3 is the Blu-Ray drive, and the cost of that component has been dropping drastically as it is being mass produced for ps3s and Blu-Ray standalone players. This is why standalone player prices are being almost cut in half, and should be in the $300 range by the end of the year as well. In addition to this, Sony is already cutting out the Emotion Engine from newer ps3s to cut costs, and are planning to outsource manufacturing of the Cell to Chinese manufacturers, which will lower expenditures even further.

They were losing around $250 on the 20gb ps3s and $200 on the 60s at launch, and to cut $250 off of the price in under a year is a pretty big feat, though not entirely unexpected.

what is an emotion engine?

 

IT is a engine in the PS2 that created

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bdhoff

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#34 bdhoff
Member since 2003 • 4104 Posts

[QUOTE="makingmusic476"][QUOTE="callen3"][QUOTE="mikeslemonade"]People seem to forget that Microsoft lost $4 billion with the xbox.  And with blu-ray Sony will gain it all back in no time.localbasketcase


sony is not microsoft....500million is a lot to sony


Did you know that almost every CE manufacturer (Samsung, Sony, etc.) generated more profit last year than MS? Sony is a very large company, and has its hand in many facets of daily living. They create everything from tvs to mobile phones, they own movie studios, create game consoles, hell, everything. To say that MS is oh so muhc larger than Sony is funny. Just because Bill Gates has billions of dollars, doesn't mean the company he created (and has since left) does. MS is losing money on so many fronts, its not even funny. Internet Explorer, Windows CE (windows for handhed devices) and other things have all failed miserable to compared to their counterparts like Mozilla and Linux. The only thing MS manages to turn a profit on is Windows for pcs, and that's just because they have 95% market share and almost all the software support.

 And to add to that Microsoft might be WORTH more than Sony but Sony actually HAS more money and a hit like this won't afftect them as bad as most people think.

Half a billion dollars hurts no matter how much money you have.

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Ichigo_Ban_Kai

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#35 Ichigo_Ban_Kai
Member since 2007 • 849 Posts

The PS2 processor, i just googled it :) thanx google (and wikipedia)chacas

but, whats good about it? 

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baiums_inferno

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#36 baiums_inferno
Member since 2005 • 2608 Posts
just wait and see...
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KSD22

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#37 KSD22
Member since 2007 • 416 Posts
Sony gets roughly 10 cents for every BluRay ever sold from now until the end of time. I calculate the HD generation to last for minimum 10-15 years. So multiply 10 cents for every BluRay ever sold for the next 10-15 years.
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xuimod

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#38 xuimod
Member since 2003 • 841 Posts
Sony reported a loss in only its games divison. On a whole, Sony still turned a profit due to other factors, including unexpectedly high sales of its Bravia televesions. Sony's stock has been continually going up since the launch of the ps3, actually, which just goes to show what Sony's investors think about the matter.makingmusic476
Listen to this guy. he actually knows what he's talking about. unlike all u little teenage boys.
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useLOGIC

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#39 useLOGIC
Member since 2006 • 2802 Posts
certain divisions of the company lose money on a regular basis.. but the company as a whole makes a profit. now, with the advent of blu-ray, they stand to make an even more pretty penny, making operating losses like these even more negligable.
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hofuldig

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#40 hofuldig
Member since 2004 • 5126 Posts

It dosent really matter sience sony makes everything. for example.

 

Laptops,TV's,Amplifiers for radio's,DVD-Tape Players. and a whole heap more than that so it wont affect them at all. 

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Ice-Cube

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#41 Ice-Cube
Member since 2003 • 2450 Posts

Sony has announced that it made a third quarter operating LOSS of $443 MILLION.  Does that number scared you?

aka_aj03
I lost 5 dollars, does that scare You? Do people really care if Sony lost so an so amount of dollars? Like it's going to effect their lives?.. lol
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satanyoka

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#42 satanyoka
Member since 2006 • 157 Posts

Sony reported a loss in only its games divison. On a whole, Sony still turned a profit due to other factors, including unexpectedly high sales of its Bravia televesions. Sony's stock has been continually going up since the launch of the ps3, actually, which just goes to show what Sony's investors think about the matter.makingmusic476

Someone who realises that Sony isn't just a gaming company and is bigger than MS. Thank you. 

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arabi_89

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#43 arabi_89
Member since 2006 • 1299 Posts

no cause they pretty much projected the loss cause of the PS3. They loose like 150 to 200 per ps3 console sold. So i guess its a good thing. lol. They will make it up within the next 6 months with game releases.fuman3

seriously? r they losing like 150-200$ per console ? why!? why would they sell consoles if they make a loss ?

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ohmyjibbonjones

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#44 ohmyjibbonjones
Member since 2006 • 220 Posts
i think the topic title is a bit misleading,they didnt loose half a billion ($500 million),they lost $443 million........
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Halukard

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#45 Halukard
Member since 2005 • 113 Posts

[QUOTE="fuman3"]no cause they pretty much projected the loss cause of the PS3. They loose like 150 to 200 per ps3 console sold. So i guess its a good thing. lol. They will make it up within the next 6 months with game releases.arabi_89

seriously? r they losing like 150-200$ per console ? why!? why would they sell consoles if they make a loss ?

Because this will insore them to make a shiatload of money on movies and games.
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BenderUnit22

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#46 BenderUnit22
Member since 2006 • 9597 Posts
when you develop your own processor and sell your stuff at a loss, it's obvious you'll lose some cash. They'll turn a profit eventually
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creativeminded

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#47 creativeminded
Member since 2005 • 1729 Posts
that's scary
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CyanX73

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#48 CyanX73
Member since 2004 • 3389 Posts

Sony has announced that it made a third quarter operating LOSS of $443 MILLION. Does that number scared you?

aka_aj03
I'm no Sony exec but I'm guessing that's a drop in the bucket for them.
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ramey70

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#49 ramey70
Member since 2006 • 4002 Posts
[QUOTE="aka_aj03"]

Sony has announced that it made a third quarter operating LOSS of $443 MILLION. Does that number scared you?

CyanX73
I'm no Sony exec but I'm guessing that's a drop in the bucket for them.

I doubt they even posted an overall loss for the company this quarter. Sony hasn't posted in overall loss in several years. Even so, Sony has $90 Billion in assets. It would take a lot to bring them down.
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king247

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#50 king247
Member since 2007 • 308 Posts
dont forget that sony doesnt just make game systems they make computers ,tv,cameras,vediocameras,GAMES,GAMESYSTEMS,fax machines,mp3players. and a whole bunch of other stuff so my point is no matter how much they loose they wil make it up in anther department they cant drop out they have money coming in from all sorts of places  while microsoft only has computers and stuff in the computer catogory and games and game systems and nintendo all they do is system and games so  if microsoft and nintendo statr losing in the game department they cant get mony from anyware eilse while sony got a buunch of department