Again — I’m Right.

so, a bit ago, i said sony would lose a whole bunch of money on the ps3.  specifically to the tune of about $4 billion in the first 12-14 months.

yeah.  that’s about what sony is saying now too.  $1.7 billion is their “new” forecast for march.

However, Sony expects losses at its game unit to nearly double from its initial estimate to 200 billion yen ($1.71 billion) for the year to March after it cut the price of a PS3 with a 20-gigabyte hard disk drive by 20 percent in Japan.

anyone else notice that a $85 cut on 15-20% of the consoles they sell in japan happens to be about one and a half million dollars?  that’s the cause to increase the loss target by $800 million?  huh?

let’s see how that works out:

  • 100,000 launch units in japan.
  • 20% of them are “gimped” 20-gig drive units.
  • 10,000 yen price cut is about $85.
  • 20,000 consoles costing an extra $85 is: $1.7 million.
  • a loss of $800 million because of the “gimped” consoles means selling 9.4 million gimped consoles.
  • gimped consoles making up 20% of the offering means nearly 50 million ps3s sold by march.

heh.  yeah.  whatever.

the price drop is a small part of what’s breaking sony over the next 6 months.


1 comment so far

  1. heavyness on

    another money pit sony has factored in yet is their “free” online. it takes money and bandwidth to run xbox live and i don’t see how sony is going to do it for free. well, it will be interesting to see what their approach is…

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