Sony's Game Division Losses Double Despite Increasing PS3 Sales

[admin]

Sony Corp.'s Game division made up by subsidiary Sony Computer Entertainment Inc. revealed operating losses today for the second fiscal quarter of 96.7 billion yen ($841 million). The amount more than doubles last year's losses of 43.5 billion yen for the period of July through September.

http://www.shacknews.com/onearticle.x/49638

The headline should really read "Sony's Game Division Losses Double Due To Increasing PS3 Sales", because everyone knows they lose money on console sales (probably more with the new 40 GB PS3).

[src2206]

because everyone knows they lose money on console sales

and make sky high profits by selling games

[admin]

Except they haven't been selling as many games as Xbox 360, as developers shy away from developing exclusives for a console that hasn't sold well (currently only holds 14% of the total next-gen console market, according to US NPD figures).

It's doing well as a subsidized Blu-ray player, but the gaming front has been a real disappointment so far. The game that I was looking forward to on the console, PES 2008, has received very bad reviews due to poor framerate issues. Konami was supposed to have worked closely with Sony on this game, so it was a bit disappointing.