Shadoglare
01-31-2007, 11:15 AM
Alternate title: "PS3 gets it's butt kicked by the Nintendo Wii":
http://www.bloomberg.com/apps/news?pid=20601087&sid=aOYe.gJii7CU&refer=home
Jan. 31 (Bloomberg) -- Sony Corp., the world's largest maker of video-game players, said losses at its PlayStation unit will exceed an October forecast of 200 billion yen ($1.6 billion) this fiscal year because of price cuts to fend off Nintendo Co.'s Wii.
The loss for the year ending March 31 will be less than 250 billion yen, Takao Yuhara, head of investor relations, told reporters in Tokyo today. The business will probably break even the following year, he said.
The comments reinforce concerns over Sony's flagship console, whose sales have lagged behind the Wii since the PlayStation 3's debut in November. Chief Executive Officer Howard Stringer has called the console one of Sony's ``champion products'' that will be an earnings driver for the electronics company.
The PlayStation 3 launch ``has turned out to be worse than even our pessimistic scenario,'' Merrill Lynch & Co. analyst Hitoshi Kuriyama wrote in a note yesterday. The console ``emerges as a key concern'' for earnings growth next year, said the Tokyo- based analyst, who recommends investors sell Sony shares.
Ouch. Personally I think all the new consoles are overpriced, but it's interesting to see that Sony is hurting that bad due to the Wii.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aOYe.gJii7CU&refer=home
Jan. 31 (Bloomberg) -- Sony Corp., the world's largest maker of video-game players, said losses at its PlayStation unit will exceed an October forecast of 200 billion yen ($1.6 billion) this fiscal year because of price cuts to fend off Nintendo Co.'s Wii.
The loss for the year ending March 31 will be less than 250 billion yen, Takao Yuhara, head of investor relations, told reporters in Tokyo today. The business will probably break even the following year, he said.
The comments reinforce concerns over Sony's flagship console, whose sales have lagged behind the Wii since the PlayStation 3's debut in November. Chief Executive Officer Howard Stringer has called the console one of Sony's ``champion products'' that will be an earnings driver for the electronics company.
The PlayStation 3 launch ``has turned out to be worse than even our pessimistic scenario,'' Merrill Lynch & Co. analyst Hitoshi Kuriyama wrote in a note yesterday. The console ``emerges as a key concern'' for earnings growth next year, said the Tokyo- based analyst, who recommends investors sell Sony shares.
Ouch. Personally I think all the new consoles are overpriced, but it's interesting to see that Sony is hurting that bad due to the Wii.