Caporegime
- Joined
- 18 Oct 2002
- Posts
- 37,804
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What i meant was that irrespective of the PS3, that Sony as a corporation made a huge loss.
The PS side of sonys business only recently came into profit:
http://www.computerandvideogames.co...-division-swings-to-profit-as-ps3-sales-rise/
So lets presume that sony made at least that much loss for the prior 2 years too, so the entire business unit probably in the hole to -600million x 3 = 1800million, but adjusted for the new 260k profit: say £1500 million loss over 4 years
IMO sony cant make another console that is destined to make such huge losses over the first 3-4 years because the company isnt in a financial state to be able to allow that to happen. Its true that PS profitability will probably now increase each year for the next 3-4 years for the PS3, but even then it will have taken the business a long time to recoup the earlier losses...
The PS side of sonys business only recently came into profit:
http://www.computerandvideogames.co...-division-swings-to-profit-as-ps3-sales-rise/
Sony's Networked Products & Services division, which houses the company's PlayStation, PC and network operations, posted an operating profit of £267 million for the 12 months ended March 31, up from a loss of £624 million the previous year.
So lets presume that sony made at least that much loss for the prior 2 years too, so the entire business unit probably in the hole to -600million x 3 = 1800million, but adjusted for the new 260k profit: say £1500 million loss over 4 years
The company spent many, many millions designing the PS3's Cell processor and its own semi conductor facilities, and Sony chief financial officer Masaru Kato told investors (via Andriasang): "It is no longer thinkable to have a huge initial financial investment like that of the PS3."
IMO sony cant make another console that is destined to make such huge losses over the first 3-4 years because the company isnt in a financial state to be able to allow that to happen. Its true that PS profitability will probably now increase each year for the next 3-4 years for the PS3, but even then it will have taken the business a long time to recoup the earlier losses...