[QUOTE="skektek"][QUOTE="yuna707"] ... yada, yada, yada, long profits are 1.5 billion generally give or take three hundred million. By now Sony has lost AT LEAST 1 YEAR OF PROFIT to date, and potentially 2 YEARS of profit.
In perspective, over 6 years, MS has lost 5.4 billion, with a yearly profit of around 12 billion. Roughly 40%. A heck of a lot, and I'll admit that the venture will probably never be profitable, but in perspective, not as scary as it seems.
Already the Ps3 has all but eliminated the profits of the ps2. The most successful system of all time. And its still losing money, 240 USD loss has gone down, but thats NOT factoring the fact that Sony sells them to retailers for LESS than 600, probably 550 at highest. So realistically the loss is still at least 200 USD.
Sony is going to have to wakeup, lose the smug attitude, and listen to their accountants. It would not be too unrealistic to think that Sony MAY pull outof the race...blah, blah, blah
XYZVector
A couple of points:
1. Consoles are typically loss leaders. They are designed to be sold at a loss and profits are either made at a later point or in other areas.
2. Productions costs drop significantly over time. Blue diodes have already dropped in price, a die shrink to 65nm is right around the corner and all future PS3s will most likely run BC through emulation eliminating the cost of including the EE on board.
3. income - expenditures = profits
what you are doing is
income - expenditures = profits - expenditures (PS3 operating losses)
While Sony's gaming division is losing money Sony as a whole is still profitable. Taken *out of context* the gaming division's losses don't look very bright to investors but that is why you have to look at *the whole picture* (see point #1). It takes a lot of initial capital to launch a juggernaut like the PS3 and Sony and their investors realize that.
In short you should leave the fortune telling to Miss Cleo and her Psychic Friends Network ;)
How do you figure, sony being profitable when they are publicly admiting they are losing money for the past 4 quarters. Sony is in a poor position to subsidise the PS3.
Sony hasn't lost money for the past 4 quarters. Where do you get your info?
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