Hunahan said:
This is not healthy.
The gaming division is dragging the entire company into the red. Selling these things cost Sony two times the amount of money that they made last year.
There's almost a billion dollars out of pocket just to run Playstation for 12 months.
This isn't a business, it's an expense.
I'm frankly shocked that they aren't being forced to stop this madness.
Yes, Microsoft spent ridiculous money on the Xbox, but at least the overall company was still healthy. Sony is not in a condition where they can afford this sort of drain.
I do not understand how they can continue to lose this much money without a drastic change in strategy.
From a finance perspective, this is utterly pathetic.
No, because from a financial perspective is ok because the important is the long term strategy.
As they did before with the other consoles, they loose money at the start of the generation with the new console. Reducing costs, after some years they start to make money with the console and its games. PS3 started to be profitable this year.
And the console has HD & BlueRay, so it helped with Bravia sales and to win the BlueRay vs DVDHD war, so they also get (and specially will get) additional money with their BlueRay players and BlueRay movies sold, not only by Sony or their studios.
Same happens with 3D. Sony will want to make it work even loosing money at the start because they are going to have 3D photo cameras, 3D video cameras, 3D projectors, 3D movies, 3D BlueRay players, 3D TVs, 3D games, and the PS3 so they will want to have profit with them.