Sony Is Losing Money Too!

It's not only Nintendo who getting hit hard, Sony, along with seemingly every Japanese company these days, is as well. A combination of the strong yen and floods in Thailand mean that Sony is forecasting a $US1.1 billion loss. [Reuters]


Comments

    How is this news? Console manufacture's have always lost money.

    The idea is sell the console at a loss so there is a sizable install base and then make back the money through other means like royalties from games or additional online services.

    This has been happening since the Dreamcast and even earlier. I only think it was the NES and SNES that were not sold at a loss as Nintendo had Yamauchi driving everything like a samurai dojo.

      I always thought MS Console section was a huge success and always made money for the company?

        If you forced your consumers (blind fans) to pay through the nose for what others get for free, you'd make a lot of money too.

          $50 a year and you get a stable and secure service...Which console offers that for free? I'd really like to know the answer to that.

      Sony is taking an overall loss, not just on the console. The underselling strategy isn't providing tter returns it should at this point in the cycle, and I don't think sony had turned a profit since 2006 because their other divisions are dead weight.

    Nintendo isn't making a loss. It has lost profit. The profit it is taking is down on last year. Sony is legit losing money.

    Oh and not all consoles lose money. Nintendo has never, ever released a console that didn't sell for a profit on day one.

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