Tuesday, May 15, 2007

PS business causes big losses. Good and Bad news.

Hms Playstation: PlayStation Biz May Post $2 Billion Loss - Kotaku

Sony? Losing money? Nah.

I hope their Blu-ray scam was worth it. They would have saved a lot of money by not forcing it into the PS3. But in the end, it will probably work out for them. If Blu-ray catches on with the regular consumer, than the BRD presses will print money, too.

If this analyst is correct, we should see a significant fall in stock price for SNE. But that's okay. Loitering investors will be ready to pounce on the stock left by those running scared. In the case that Blu-ray is DVD's successor, there should be a substantial increase in income from that sector. The "victory" will cause the opposite in stock price, but it will be later down the road. Buy low, sell high, right?

Their biggest concern is whether the PS3 will have a strong future like it's brethren. We mustn't forget that the division in charge of the Playstation brought the income to keep everything afloat. If Sony loses that...then they are in trouble. The PS2 should keep them sitting pretty for a few more years, so there really isn't any immediate concerns.

Then again, Sony is definitely NOT Microsoft, and these kind of loses are a publicity nightmare. We'll see how SNE handles it.


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