Profit Slips at Sony on Losses for PlayStation 3

Posted on January 30, 2007
Filed Under Uncategorized |

Told you so… I do admire their attempt to put the spin on it, suggesting that the loss is due to the price point being below manufacturing costs, neatly sidestepping the bigger issue that they had 300k unsold units after the pivotal Christmas shopping season, but hey they did “ship 1 million units” into the channel. It’s really kind of frightening to think that the manufacturing cost is over $600, in the quantities that Sony manufactures, for this game console.

Profit Slips at Sony on Losses for PlayStation 3 – New York Times: In a statement, Sony blamed the decline on a strategic decision to set the price of the PlayStation 3 below the cost of production as a way to bolster market share. It also blamed start up costs for the new consoles, which were released in Japan and the United States in November. Sales of PlayStation Portable hand-held players have also been slow, the company said.

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