Sony VP Forecasts Further Sony Games Losses

Sony senior vice president Takao Yuhara has predicted that the firm's games division will endure an operating loss of around 50 billion Japanese yen ($415.4 million) for the year ending March 31, 2008.

The forecast is nevertheless an improvement on the 232 billion yen ($1.93 billion) loss Sony's games unit announced yesterday for the financial year ended March 31, 2007, reports Reuters.

The news comes despite forecasts by Sony that it will witness operating profits of 440 billion Japanese yen ($3.65 billion) for the current financial year.

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EDF 20174230d ago

This is Sony's Xbox 1, they are going to end up losing more money than microsoft ever did with the Xbox 1.

bootsielon4230d ago (Edited 4230d ago )

Was because they couldn't control the overall cost of the Xbox. On the other hand, Sony owns IP of everything in the PS3, and even better for them, manufactures a lot more things that Microsoft does on Xbox 360. So they're not going to endure big losses. The loss is getting reduced 75% on the second year. Then on it's mostly profit (unless Sony severely wants a 1st place in marketshare the second year, which is unlikely). Not the case with the first Xbox. Xbox 360 does a bit of that, but I don't think it helps every Microsoft division, much less as much as the PS3 (potentially) will do.

Also, the amount of revenue Sony could potentially get from the PS3 investment is huge, since nearly every division of Sony can profit of the PS3.

EZCheez4230d ago

But I doubt it if they stick to their word about backing it for ten years. Then it will be just as big a cash cow as the PS2, maybe bigger. If you can cut your losses by almost 1 billion dollars in a year, then you are making progress. Thank goodness Sony and Microsoft have other business though, as Nintendo really has no failsafe other than the DS. Of course right now they don't really need one.

shotty4230d ago

Want to know why microsoft got screwed with the xbox 1, a few months after the launch of the xbox 1, sony dropped the ps2 price to $299 and microsoft was forced to and they offered controllers to the early adopters. The cost was therefore always higher than retail value