Sony's game division loses $654 million

[TheAnalogKid]

Originally Posted by Onslaught X

Sony shareholders happy and share price will continually rise for the rest of the yr,imo

SNE is a buy and will go over 35 bucks by yrs end,imo

Ha, good one mstr...wait..what?

[Malanthius]

The price drop was obviously a desperate move to try and save it's gaming division and try to help BR at the same time (they still tout it as a BR player in their ads). I thought the console was profitable? We shall see if BR takes off this year.....

[Slayer]

I wonder if this huge loss has anything to do with the PS3 being such a financial loser like I have been saying in another thread. Yep... vindication us mine sayeth Slayer!!!! Sweet sweet vindication!!

It does everything but make money!

[IceNine]

Originally Posted by TheAnalogKid

Anyways - not a good time to be sony. I'm sure the massive stimulus will turn all this around soon, since everyone will be working and have plenty of money to spend.

I might be the only one here who caught the wonderful sarcasm!

[Onslaught X]

Originally Posted by Dennis M.

Lol, do Wulf now!

Uh oh! Looks like Sony's taking a huge loss again! This has always been the plan for Microsoft, they knew they were going to take massive losses and then they would rise like a dragon in the second! Meanwhile, Sony is getting destroyed by its own monster it created! I'm not so sure a PS4 is in the works! Take your kicks in the ass and move on, Sony!

*I'm not too good at this stuff

[Todd Roberts]

Originally Posted by Onslaught X

Uh oh! Looks like Sony's taking a huge loss again! This has always been the plan for Microsoft, they knew they were going to take massive losses and then they would rise like a dragon in the second! Meanwhile, Sony is getting destroyed by its own monster it created! I'm not so sure a PS4 is in the works! Take your kicks in the ass and move on, Sony!

*I'm not too good at this stuff

More cowbell.

[nmcmahan52]

Originally Posted by Onslaught X

Uh oh! Looks like Sony's taking a huge loss again! This has always been the plan for Microsoft, they knew they were going to take massive losses and then they would rise like a dragon in the second! Meanwhile, Sony is getting destroyed by its own monster it created! I'm not so sure a PS4 is in the works! Take your kicks in the ass and move on, Sony!

*I'm not too good at this stuff

i dunno! i thought that was pretty good!

[Onslaught X]

Originally Posted by nmcmahan52

i dunno! i thought that was pretty good!

Originally Posted by Todd Roberts

More cowbell.

*Looks at Chong Li*



*Looks at Todd Roberts*



I'm going to go with Chong Li's input. It's Chong Li ffs.

[Dennis M.]

Originally Posted by Onslaught X

Uh oh! Looks like Sony's taking a huge loss again! This has always been the plan for Microsoft, they knew they were going to take massive losses and then they would rise like a dragon in the second! Meanwhile, Sony is getting destroyed by its own monster it created! I'm not so sure a PS4 is in the works! Take your kicks in the ass and move on, Sony!

*I'm not too good at this stuff

Great effort, but it doesn't have the same impact without the proper avatar.

[miDnIghtEr]

wow.. that's a big ass kicking in the money losing department.

whoever had the line it does everything but make a profit... that's a smackdown of the year sentence there. good job.

[Godstar]

Originally Posted by miDnIghtEr

wow.. that's a big ass kicking in the money losing department.

whoever had the line it does everything but make a profit... that's a smackdown of the year sentence there. good job.

I think Sony made decisions they knew wouldn't make a profit, despite the problems it would cause.

[RedRedSuit]

That's price cuts for you.

[Citizen G'kar]

Originally Posted by BStroms

Microsoft definitely has a big advantage from currency prices right now. Here's a clip from a financial article I was reading.



This is for all of Sony, so the game division wouldn't have been profitable even without the recent currency changes. But you can see that it does make a significant difference.

At the same time, the dollar is near historic lows, which makes it easier for MS to rake in the cash when exporting.

This is actually not exactly true.

Currency fluctiations are hedged against by most large companies who buy insurance against currency fluctuations to mitigate the damage of volatile swings.

Also, a falling dollar not only decreases the cost of domestic inputs in the product of Microsoft products it also decreases the value of American purchases of a good.

The 360 is made from Chinese and Taiwanese parts. The value added of microsoft was from design of the console and software development and support.

As it is, the 360 is hurting less than Sony since more of the inputs of the 360 come from the US but in the end, the cost of foreign supplies has increased while the purchasing power of the american consumer has lesseened.

In general though, the purchase of inputs is locked in by long-term contracts and Microsoft pays most of its employees in dollars so it is a clear advantage for Microsoft to have a weaker dollar in the short-term.

But the chickens will come home to roost if the dollar keeps deterioating, as Microsoft adds very little value on the hardware side of things aside from design (which objective people can all agree is pretty poor due to RROD) and foreign suppliers do have to renegotiate contracts.

[MSX2]

Originally Posted by RedRedSuit

That's price cuts for you.

True, but the the title here is misleading because it's Q2 for the whole company and the culprits cited are falling Vaio and PS2 sales alongside the strong Yen factor.

[Onslaught X]

They also cited game sales. But considering when a price cut usually happens, you drive a lot of software, but with not nearly enough big game titles to compensate along with the massive increase in sales, that also doesn't help.