$200 million lost by Sony's games division, but Senior VP says PS3 costs recovered in five years.
Recently Sony posted a fairly significant loss in its games division (overall the company did well). With the Research and Development costs of the PS3 being high its not too unusual to see them burning cash to make a stable console.
However, Senior VP Takao Yuhara told investors that the PlayStation 3 console sales will recoup the lost cash on R&D within five years. This is roughly the same amount of time that went by before the PlayStation 2 unburied its losses.
On the flip side, he also prepared for more losses stating that analysts state microchip costs are rising. This will cost more for Sony's PS3 to be produced so an aggressive takeover in the market will be their best bet for a five year recovery on their next-generation console.
If their bet on Blu-Ray pays off the time span for recovery could be shortened and the profits exponential in size.
Recently Sony posted a fairly significant loss in its games division (overall the company did well). With the Research and Development costs of the PS3 being high its not too unusual to see them burning cash to make a stable console.
However, Senior VP Takao Yuhara told investors that the PlayStation 3 console sales will recoup the lost cash on R&D within five years. This is roughly the same amount of time that went by before the PlayStation 2 unburied its losses.
On the flip side, he also prepared for more losses stating that analysts state microchip costs are rising. This will cost more for Sony's PS3 to be produced so an aggressive takeover in the market will be their best bet for a five year recovery on their next-generation console.
If their bet on Blu-Ray pays off the time span for recovery could be shortened and the profits exponential in size.
