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Sony's Game Division Expecting Massive Loss; on PS3 launch
Topic Started: Saturday Apr 29 2006, 02:45 PM (95 Views)
Eagle Boy	Saturday Apr 29 2006, 02:45 PM Post #1
Unregistered	The results for Sony's game division during the current fiscal year will not be good however, as the company ramps up investments for the PlayStation 3, which launches worldwide this November. Sony expects the segment to hemorrhage 100 billion yen ($871.6 million) in operating losses during the business year as it prepares the PS3 for launch. That said, in the future Sony believes it can cut down on PS3 related costs quite a bit. "We believe that we can lower costs dramatically (on the PS3) through chip shrinkage and by cutting the number of parts but there is no way to avoid high costs in the first year," Sony Senior Vice President Takao Yuhara told a Tokyo news conference, according to Reuters. Sony believes it will be able to sell 6 million PS3 units by March 2007, the end of the current fiscal year. If the company can pull that off, then it will have eclipsed Microsoft's Xbox 360 target in a shorter timeframe. MS expects to sell 4.5 to 5.5 million Xbox 360s by this June. While the Xbox 360 may approach 6 million units sold in about 7 months since its launch, Sony expects to do the same in only 4 or 5 months. Of course, if Sony wants to catch up with the 360's head start, the company will need to ship as many as it can and as fast as possible. "After the introduction of the PS3 we will focus our efforts on expanding the platform as rapidly as possible," said Nobuyuki Oneda, Sony's chief financial officer, at the news conference. "We will also attempt to lower the manufacturing costs by reducing the number of parts used in hardware and reducing the costs of the semiconductors and other key components. By so doing, we aim to bring the PS3 business to profitability at the earliest possible time." Lol @ last paragraph... the cheap bastards. PS3 believes it can sell 6 million units by March 2007...Most probably all from Japan, since it will most likely not be released here by then.
hijak	Saturday Apr 29 2006, 02:51 PM Post #2
MGS Fanboy Posts: 999 Group: Members Member #3 Joined: February 10, 2005	it will be out here then but. With the xbox360 out and Wii on the way, PS3 HAS to be out worldwide by the end of the year. This is also important for blu-ray. 2 million for launch worldwide..... its xbox360 launch all over again, but wii are included since we are seen as part of europe lol :)
Eagle Boy	Saturday Apr 29 2006, 03:38 PM Post #3
Unregistered	apparently they are having a few problems with the blu-ray. I think that is what all the delays are about.
hijak	Saturday Apr 29 2006, 09:34 PM Post #4
MGS Fanboy Posts: 999 Group: Members Member #3 Joined: February 10, 2005	Blu-ray was the reason for the original delay... keep up with the news :P If blu-ray was all fine earlier, PS3 would of been out in Japan by now.
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