Sony Raises PS3 Loss Forecasts
Electronics profit margin expectations up

29 Oct 2007
Link to this: http://news.spong.com/article/14137
Losses at Sony's games division will likely be double its initial forecast for the year, the company has said.
Losses for the financial year ending in March are now expected to be in excess of 100 billion yen (£425 million), compared to an original forecast of 50 billion yen (£212.5 million). As the PS2 and PSP are faring well at the moment, blame lies on the shoulders of the PS3.
The new forecast follows Sony posting a loss of 126 billion yen (£535 million) for its games division in the first half of the year last week. The company said at the time that it hoped to break even or make profit at its games division in the second half of the year. As the company isn't going as high as 126 billion yen its loss forecast for the year, however, it is obviously aiming for profit in the next six months.
Elsewhere at Sony, however, the outlook is a bit more rosy. The company said that the operating profit margin for its electronic business will likely reach five percent in the year to March, compared to a more modest earlier projection of four percent.
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Comments on this News
7 comments on-line.
What people also forget when constantly bashing Sony is that Microsoft started in exactly this way, albeit less ambitious, with less to lose. Throwing money at a problem until you succeed is one thing, but in this case, it's not so much a problem, but an ideal that Sony has.
And maybe they won't succeed in achieving it (don't forget, the PS3's virtually only just been released), but at least they had a vision (and don't even forget what they achieved up until now with their previous consoles).
Microsoft have achieved success (finally), but what else? What have they actually done that's new, why do they deserve my money?
Now I'm not a Sony fan, I'm a Nintendo/Sega fan, and ultimately, I don't care whether Sony succeed or fail, in itself. But I've seen the games industry develop over the last 20 years, and I actually care about games being good in their own right, I'm not just trying to push games into becoming "cool" so that I'm "cool."
Microsoft deserve credit for what they've achieved - but they still haven't achieved that much. But Sony don't deserve to fail, especially when they have ambitions that will benefit you if they succeed.
I don't think the importance of online play can be overemphasised. This, more than anything else marks a watershed moment in gaming. I also forgot the other area where MS hs been ahead of the curve, HD. It wasn't until the PS3 that Sony answered, and their clear advantage of sole possession of HDMI was relatively short-lived. MS, Live! and the original Xbox were the driving force for this generation, they defined the questions, and thus far have provided the best answer.
I'm racking my brain trying to think of one area where the PS2 was innovative, but I can't come up with one, aside from gadgety peripherals...
Also, are you pro-rating Sony's investment in games in consideration that it is also an investment in a media war?
First comment
Posted by realvictory
A lot of people will probably say "serves them right, for having a stupid business plan," which is correct, but on the other hand, it's an ambitious plan, so I have sympathy for them. And good on them for investing a lot more money in games than they're making from it.What people also forget when constantly bashing Sony is that Microsoft started in exactly this way, albeit less ambitious, with less to lose. Throwing money at a problem until you succeed is one thing, but in this case, it's not so much a problem, but an ideal that Sony has.
And maybe they won't succeed in achieving it (don't forget, the PS3's virtually only just been released), but at least they had a vision (and don't even forget what they achieved up until now with their previous consoles).
Microsoft have achieved success (finally), but what else? What have they actually done that's new, why do they deserve my money?
Now I'm not a Sony fan, I'm a Nintendo/Sega fan, and ultimately, I don't care whether Sony succeed or fail, in itself. But I've seen the games industry develop over the last 20 years, and I actually care about games being good in their own right, I'm not just trying to push games into becoming "cool" so that I'm "cool."
Microsoft deserve credit for what they've achieved - but they still haven't achieved that much. But Sony don't deserve to fail, especially when they have ambitions that will benefit you if they succeed.
Latest comment
Posted by PreciousRoi
You place far too much emphasis on innovation. Far too much. Much of what is lauded as innovation is illusory in nature in any event. The rule seems to be, "first person to make it popular gets credit for inventing it". Thus, Nintendo gets credit for a lot of things they copied from something or someone else. I don't really think that gamers, in general, care about innovation for its own sake, nor should they. They just want enjoyable gameplay. Wether that entails some apparently novel approach, or polishing up some tried and true (some might say tired and old) model is less important than doing it right.I don't think the importance of online play can be overemphasised. This, more than anything else marks a watershed moment in gaming. I also forgot the other area where MS hs been ahead of the curve, HD. It wasn't until the PS3 that Sony answered, and their clear advantage of sole possession of HDMI was relatively short-lived. MS, Live! and the original Xbox were the driving force for this generation, they defined the questions, and thus far have provided the best answer.
I'm racking my brain trying to think of one area where the PS2 was innovative, but I can't come up with one, aside from gadgety peripherals...
Also, are you pro-rating Sony's investment in games in consideration that it is also an investment in a media war?
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