Big losses for Sony's Game Division

[saltysurprise]

Sony will lose about $413 million in its video games business this fiscal year, and recovery won't come until the arrival of more games to play on the PlayStation 3 machine, a company executive said Thursday.

"The main point is that the PS3 will still be producing operating losses," Senior Vice President Takao Yuhara told a small group of reporters at Sony Corp.'s Tokyo headquarters.

On Wednesday, Sony reported that losses for the January-March quarter widened from the same period a year ago to $563 million in red ink, largely on launch costs for the PS3, which went on sale in November in Japan and the U.S., and in March in Europe.

[JoStream]

The PS3 clearly still needs some time to settle into the market. As I understand, the PS2 is still outselling the new console. Of course the supply problems (whether real or artifical) have not helped Sony's position.

I'd love to have a PS3, but it's a bit pricey to tell you the truth :stop:

[saltysurprise]

The way I understand it is that they were having problems with the things overheating. There was a Tech Expo this past spring where they were on display and had a number of fans running to cool the units so people could actually try it out. I think this is partly why Sony is reluctant to get so many out before they had the bugs worked out. Makes sense, could you imagine the warranty headaches?

If I'm not mistaken, Sony's stock prices have actually risen as of late.