Sony on selling 3M PS4s by years end: Goal already cleared

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SonofK

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#201 SonofK
Member since 2013 • 1088 Posts

@majesticshea: Already said it, try harder. No really, try harder

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MajesticShea

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#202 MajesticShea
Member since 2013 • 730 Posts

@SonofK said:

@majesticshea: Already said it, try harder. No really, try harder

Oooh seems I struck a nerve.

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jhcho2

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#203 jhcho2
Member since 2004 • 5103 Posts

No matter what is posted here, we are still working with inadequate information. Not even financial auditors get the full picture sometimes, let alone posters on this board.

When Microsoft declares profit for their gaming division, the first question we must ask is, what constitutes their gaming division? Just Xbox? Or Games for Windows Live? Or even gaming accessories like Sidewinder mice and keyboards for PC as well? Do any of us know it for certain? Nope.

Secondly, how does MS declare their profit and loss? Could it be possible that when an Xbox is sold, the revenue is booked under Gaming Division's profit, but when the Xbox is replaced due to RROD, the expense is maybe booked under Technical Support or some other division? Yes, it's possible. And many companies do indeed shuffle around the profits and losses through different divisions to make certain unprofitable divisions appear profitable.

When it comes to Sony, yes, Sony's consumer electronics division has been losing money for years, but unlike MS, Sony doesn't have a separate 'gaming division'. Their consumer electronics division consists of TVs, gaming consoles, laptops, mp3 players etc etc. So when this consumer electronics division loses money, do we know what proportion of that loss is contributed by just the Playstation brand? Or perhaps by some fluke, the Playstation segment is making profit, but the sheer number of non-gaming Sony products in the market which aren't selling would result in the consumer electronics division losing money no matter how well the Playstation sold?

Bottom line is, most if not all of us, do not know these things. People instead take isolated cases of profits and losses and use it out of context in favor of disfavor of a particular argument. On the topic of profit and loss, it has to be evaluated as a whole. You have to audit their books and find out how their cash is circulating in the entire company, not just look at press statements which are obviously biased to mislead the public.