How many 3/4 billion dollar loss quarters can Sony have on the PS3?
They are like Toshiba -- they make so much money in their other businesses that the loss they have taken on the PS3 is balanced out. The changes they have made in the video gaming side of the business shows that they do not want to continue to lose money and the fact that they are hinting at making money for their fiscal year ending in March 08 says that they are not taking the bath everyone says they are. But, and this is a big but -- if the games start coming out and Sony can sell some systems with the game then they will be okay. Sony is probably looking at their fiscal year 2009 as making money on the PS3. By then the PS3 as a gaming machine should be getting its legs -- and that should definately help next year. Sony is making money on the games, the BD movies and hopefully -- eventually the systems. Most of the time a new videogame system starts making money in the third year. Sony is probably doing everything they can to see that happen for their PS3.
My earlier point about Toshiba is that if only the Chinese can come in and make money on the hardware side of the format -- how can you induce other CE manufacturers to support your format? If there is no money to be made -- and you keep dropping prices below costs to sell -- how long will you continue the good fight?