Sony FY 2007 Q3 Financials

This is quite good news. 1 year in they already have a profitable quarter. It took MS 2 years before MS had a profitable quarter.

I guess the question is, what is Sony's next move now? Do they hold the price at $399 and just use the profits from the upcoming quarter to fund more game development and platform advertising? Or do they start slashing prices?

I suspect they will not cut prices till summer. Or untill MS pulls the trigger and lowers 360's price.
 
inefficient said:
I guess the question is, what is Sony's next move now? Do they hold the price at $399 and just use the profits from the upcoming quarter to fund more game development and platform advertising? Or do they start slashing prices?
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I think it's too early to call Q4 profitable for the gaming division; given the (relatively) slim margin of profitability and the quarter in which it took place, they might dip into loss again before climbing out more permanently into profits.
 
Darkon said:
KKs PS3's cost reduction plan seems to be working, why again was this man let go ?
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I'm as big (or bigger) a fan of Kutaragi as anyone, but it's hard to attribute any of this to his cost-reduction plan per se, either because a) it may have been the obvious plan anyway, or b) it may have been deviated from as the gravity of the situation increased. For example, perhaps his plan never included a B/C-less version of the console? These are all unknowns. But to answer your question as to why he was let go, it was simply because him and Stringer never had a functional working relationship.
 
I don't know, maybe it's coincidence or not, but things seemed to turn around as soo as Kaz took control. Maybe KK had layed out the cost cutting plan that included the slashing of PS2 BC, which seemed to be key, or maybe Kaz pushed for that. Hard to know, but Kaz gets to take the credit on the face of it.
 
Well, alternative futures can never be known... I think even for Ken, the need to act drastically would have been clear. But in any event, I like both men... the thread shouldn't become bogged down on a KK retrospective whatever the case. :)

(PS - I'll note though that personally I think B/C in software is still being worked on. Whoever the catalyst, I think the PS3 sans PS2 HW was a plan always on the books, simply pushed up in timeframe.)
 
Carl B said:
Well, alternative futures can never be known... I think even for Ken, the need to act drastically would have been clear. But in any event, I like both men... the thread shouldn't become bogged down on a KK retrospective whatever the case. :)

(PS - I'll note though that personally I think B/C in software is still being worked on. Whoever the catalyst, I think the PS3 sans PS2 HW was a plan always on the books, simply pushed up in timeframe.)
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Possibly to be removed once software compatibility is done? They just had more pressing cost cutting needs which forced them to remove it before they intended.
 
Good for Sony! They should really be hugging every PS2 manufactuered! That thing is a life saver. Nice to see all 3 turn a profit.
 
inefficient said:
This is quite good news. 1 year in they already have a profitable quarter. It took MS 2 years before MS had a profitable quarter.
Click to expand...

MS doesn't have the ps2 and psp padding profits for its gaming division. Do you really think the ps3 on its own is profitable?

I guess the question is, what is Sony's next move now? Do they hold the price at $399 and just use the profits from the upcoming quarter to fund more game development and platform advertising? Or do they start slashing prices?

I suspect they will not cut prices till summer. Or untill MS pulls the trigger and lowers 360's price.
Click to expand...

According to the quote Rangers provided they are still losing money on the units, so any price reduction at this time comes out of pocket.
 
inefficient said:
This is quite good news. 1 year in they already have a profitable quarter. It took MS 2 years before MS had a profitable quarter.
Click to expand...

MS had no PS2 and PSP software and hardware sales to offset the 360's losses either... the comparision is unfair.
 
Titanio said:
I don't know, maybe it's coincidence or not, but things seemed to turn around as soo as Kaz took control. Maybe KK had layed out the cost cutting plan ...
Click to expand...
The cost-cutting plan was laid out when they stuffed PS3 with cutting edge tech on the crest of a new process shrink! Big and fast drops were inevitable, not because of careful laid out cost reductions, but because the starting price was so damned high!
 
psorcerer said:
Yes, due to the relatively high software sales it's profitable.
Click to expand...

Definitely not. Definitely not. People, just listen to the conference call. PS3 operations have greatly reduced their losses, but all the *profits* are still coming from PS2 and PSP. The stronger PS3 software sales are just part of the improving picture.
 
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