Playstation 3 Operating losses

[esteban2]

Man, the PS3 continues to hemorrhage money for Sony. Here's the 2007 3rd Q report:

http://www.next-gen.biz/index.php?op...7672&Itemid=59

"The Japanese electronics giant posted a gaming unit operating loss of 96.7 billion yen ($847.6 million) for the quarter ended in September 2007, down 53.2 billion yen year-on-year, which it attributed largely to the price point of its PlayStation 3 console:

“In the game segment, operating loss increased primarily due to the loss arising from strategic pricing of PS3 at points lower than its production cost and the increase in PS3-related inventory write-downs recorded during the current quarter compared to the same quarter of the previous year,” the company said in a statement.

And concerning March 2008, Bloomberg reports:

"Higher sales, coupled with lower production costs, will reduce the company's operating losses related to PlayStation 3s by 90 percent to $158 million in the fiscal second half ending March 31, according to Dec. 27 estimates by Nikko Citigroup."

Should we be concerned about this? BD is closely tied to the PS3. The PS3 can't go on losing money forever ...