Comments for Sony Post ¥37.1 Billion First-Quarter Loss

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Tim Sutton

12:29 AM on 2 August, 2009

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@ Max





Yes, the results were not as bad as the worst estimates. But that's a bit like being happy because the sewage doesn't quite cover your head; you're still deep in the sh.. in trouble.





I think it's likely the 70% reduction in PS3 production costs (and I take that figure with a HUGE pinch of salt) applies to the new slimline PS3 rather than the existing hardware. My reasoning is the still huge loss (USD 612m) posted by Sony's game division, despite increased PS3 sales year on year.





A 70% cost reduction on a unit costing $900 to produce at launch leaves it costing Sony $270, leaving a healthy profit on a console retailing at $400+.. I don't think that figure gells with the results Sony have posted.





I'm sure Sony will turn things around eventually, but I wouldn't buy any shares just yet. Surely it's almost time for them to introduce yet another hugely unpopular proprietary format, and that'll REALLY put their stock in the toilet.