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Old 10-26-2007, 12:05 AM
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Sony Posts Operating Losses Over PlayStation 3 Pricing

Now don't get all excited you PS3 fans, at this stage of the PS3's evolution, it should be loosing quite a substantial amount of yen as they tinker with pricing to get the console into our homes. But here's the skinny on just how much sake they're not drinking at Sony right now.



Quote:
Sony said Thursday that quarterly operating losses for its games unit had more than doubled, but that it hoped the division would break even or better in the second half of the financial year.

The Japanese electronics giant posted a gaming unit operating loss of 96.7 billion yen ($847.6 million) for the quarter ended in September, down 53.2 billion yen year-on-year, which it attributed largely to the price point of its PlayStation 3 console.

"In the game segment, operating loss increased primarily due to the loss arising from strategic pricing of PS3 at points lower than its production cost and the increase in PS3-related inventory write-downs recorded during the current quarter compared to the same quarter of the previous year," the company said in a statement.
Not surprising...and not the end of the world. They finally have some great titles starting to churn out for this platform, and you can bet as Blu-Ray gets more prominent, the PS3 will really start to shine.
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Old 10-26-2007, 10:47 AM
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Like in your previous post about the 360 finally making a profit - we'll see how long it takes for Sony to do the same thing! 850 million is a lot of cash, but we'll see what happens!
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Old 10-26-2007, 11:32 AM
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unlikely.

esp with the price cuts. probably at least another year til profitable, maybe 2.
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