Sony has announced its financial results for the second fiscal quarter of 2007, showing an overall revenue growth year-on-year of 12.3 per cent. That's the good news, the bad news is losses from their game's division doubled to $841 Mil USD.
Sony attributed the loss primarily to pricing the PS3 at less than the price of manufacturing it. Losses on hardware are nothing new to console manufacturers who reap the huge bulk of their profits from software sales. However, considering the slow pace of sales of PS3 consoles combined with low software attach rates, the immediate future looks pretty bleak for Sony's bottom line, at least from their games division.
Don't worry too much for Papa Sony though, he won't be dipping into the kids college fund anytime soon; the company as a whole reported a profit of $787 Mil USD during the quarter.
Sony attributed the loss primarily to pricing the PS3 at less than the price of manufacturing it. Losses on hardware are nothing new to console manufacturers who reap the huge bulk of their profits from software sales. However, considering the slow pace of sales of PS3 consoles combined with low software attach rates, the immediate future looks pretty bleak for Sony's bottom line, at least from their games division.
Don't worry too much for Papa Sony though, he won't be dipping into the kids college fund anytime soon; the company as a whole reported a profit of $787 Mil USD during the quarter.
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