There has been a lot of Sony bashing going on in the press lately, but are things as bad as they seem? Well, the official numbers are in and according to the New York Times, Sony’s gaming division reported a quarterly loss of 54.2 billion yen ($445,339,113 US) which is down from a 67.8 billion yen profit ($ 557,107,637) in the 3Q last year.
The losses in the gaming division are due to three factors: selling the PS3 at a price below the cost of production, the cost of launching a new console, and less than stellar sales.
So how did Nintendo compare in the 3Q during the launch of the Nintendo Wii?
Apparently, Nintendo raked in a net profit of 131.9 billion yen ($1.1 billion) in the first 9 months of the fiscal year which is up from 92.2 billion yen last year (quarterly results were not made available). The Wii console has also outsold the PS3 by around 2 to 1 in both Japan and the US.
Sony is still refusing to reduce the price of the PS3, but my question is how much longer can they go at this rate? If they don’t find a way to move the console faster, they will have no choice but to cut the price and make up the difference in software and peripheral sales down the line.