PS3 Causes Sony Profit Drop
January 30th, 2007 by Darren Stevens in Business
Sony just announced its Q4 2006 profits, which dropped by 5.3% compared to 2005. The games divion lost $441 million in the last quarter alone, mostly due to the costly PS3 manufacturing process. Sony is selling the PS3 console at a big loss, estimated production cost is over $900. But it’s not all bad news, as Sony’s other businesses did quite well to compensate for the loss. Their HDTVs and digital cameras, as well as successful movies like Casino Royale 007, contributed to an overall Q4 profit of $1.3 billion. This is significantly higher than Nintendo’s record profits of $991 million for all of 2006. Analysts are still doubting the PS3 becasue of the weak start, resulting in Sony’s stock taking a modest hit on the Japanese market today.
Read (NY Times)
Tags: Business
January 30th, 2007 at 8:48 pm
This may seem like news to some people. But it was already predicted last year that Sony would initially take a loss on PS3s. Right now it’s about giving developers some time to get their feet wet. It’s still early.
January 30th, 2007 at 10:21 pm
Higher, but not significantly. And I doubot that Casino Royale is going to bail them out again in Q1.
January 30th, 2007 at 11:34 pm
No but SpiderMan 3 will not hurt…
and the coming of games will provide more of a boost too..
January 31st, 2007 at 11:48 am
2nd largest electronics company in the world it’s a drop in the bucket.
Microcrap has average over 1.5 billion loss since original Xbox started selling. But don’t say that too loud, we’re liabel to hurt their poor fanboy feelings.
Hey M$ fanboys in X360 launch year, they lost 3 plus billion! Biggest loss of any division in M$ history!
January 31st, 2007 at 3:03 pm
LOL @ microcrap..
January 31st, 2007 at 10:53 pm
‘ ‘ You could be right about the 3 billion division, they spent a lot on advertising. Gotta link of that? I can’t find it:P:P ‘ ‘
LMAO..frodo annoucing the launch of the xbox 3DO at MTV.
$$$$.