Sony Cuts Guidance 38%, Gaming Division Losing Money
"The Japanese firm's outlook is bleak," wrote Forbes, citing a surging Japanese yen as hurting Sony's ability to export its products. Added to that, currency exchanges favor Korean rivals in consumer electronics, Sony's bread-and-butter products.
Video games are part of Sony's problem, as the games division has failed to recoup the PlayStation 3's $3 billion development cost and hardware losses despite what Forbes refers to as "early 2008 promises of profits."
Sony's overall profit tanked in its Q2 (July-September), dropping by half to 73.7 billion yen ($754.9 million)--and 60.7 billion of that yen came from one-time sales of some of its holdings.
"This is just the beginning of a big earnings collapse," said a Tokyo analyst to Forbes, speaking anonymously. "Given the track record of this company, it will under-deliver all the way."
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Ouch, looks like we are stuck with the current generation of consoles for long long time.
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More RAM and disc space would be very welcome though. And fillrate. We're on our 3rd 360 game, when we ship that'll be 6 years on one platform. If there's still no new platform on the horizon then that's another game and 8 or 9 in total.
That sure seems like plenty of time without hardware progress to me! 8 or 9 years!
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