Sony Game Division Losses Pile Up on PS3


	Sony Game Division Losses Pile Up on PS3

scottrobinson18

7-26-2007 1:59 PM

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news: sony game division losses pile up on ps3 'st

scottrobinson18 says:

The losses continue to mount at Sony's game division. For the first quarter, the game division posted an operating loss of $237 million, which the company blamed on its "strategic pricing" for the expensive PS3. Overall, Sony's net income was way up, however.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/c131d63b-3ebb-447b-96f8-8dfd596cba9d/2A274138-7759-4453-8AF4-0AAE8817861C/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://biz.gamedaily.com/industry/feature/?id=16937&ncid=AOLGAM000500000000026" href="http://biz.gamedaily.com/industry/feature/?id=16937&ncid=AOLGAM000500000000026" style="font-size: 11px;">biz.gamedaily.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://biz.gamedaily.com/industry/feature/?id=16937&ncid=AOLGAM000500000000026"><B class="gy18">Sony Game Division Losses Pile Up on PS3 'Strategic Pricing'</B></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://biz.gamedaily.com/industry/feature/?id=16937&ncid=AOLGAM000500000000026"><P>
"This deterioration was primarily due to the loss arising from the strategic pricing of PS3 at points lower than its production cost, although operating income from software increased due to further hardware penetration in the market," Sony explained.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://biz.gamedaily.com/industry/feature/?id=16937&ncid=AOLGAM000500000000026"><P>
Sony recently cut the price on its 60GB PS3 to $499, but it was revealed soon after that the new low price is temporary as the company tries to <A href="http://biz.gamedaily.com/industry/feature/?id=16791">clear out its inventory</A> to make the new 80GB version ($599) its primary SKU. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://biz.gamedaily.com/industry/feature/?id=16937&ncid=AOLGAM000500000000026"><P>
Sales at the game division were actually up 60.5 percent to almost $1.6 billion. Sony said overall hardware sales were up thanks to contributions from the PS3 and increased unit sales of the PS2 and PSP. Sony sold through 710K PS3 units worldwide during the first quarter, as well as 2.14 million units of the PSP and 2.70 million units of the PS2.</P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/2A274138-7759-4453-8AF4-0AAE8817861C/blog/" title="blog or email this clip"><img src="http://content8.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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