Video Asylum

Posted by racerguy (A) on December 16, 2007 at 11:09:48

In Reply to: RE: thank you for that informative link posted by Ole Lund Christensen on December 16, 2007 at 10:53:14

Yes, overall Sony's profitability is beginning to rise. Sony stock may be a good investment. That is irrelevant to the subject of your constant propagandizing though.

The relevant issue is that Sony is losing money on the PS3. The relevant question is: how long will Sony permit its more profitable divisions to subsidize its money-losers?

In the past, Sony frequently subsidized its money-losers for years. That is one of the reasons why they got into financial straits. Ever since Stringer took over, Sony has chosen to focus more on short-term profit goals, and has begun to show a tendency to walk away from unprofitable business models and products.

We'll have to wait and see whether the PS3 will become profitable. In the meantime, if you're concerned, maybe you should directly contribute to the gaming division's bottom line. Instead of buying stock, you should buy several thousand PS3s ;-)