Sony Corp Boss Says PS3 Heading for $1.7 Billion Deficit

Sir Howard Stringer, head of Sony, admitted that rough times will be coming to the company due to the deficit caused by manufacturing the PS3. Stringer, who has been remarkably silent on the issue of the PS3, said the company had to generate profits from other divisions within Sony to offset the losses. “We promised that margins for next year will be 5 percent and we have every intention of doing that. Considering some of the additional costs of PlayStation 3, we have to generate some excitement and profits from elsewhere in the company to offset the performance of PlayStation 3."

Stringer expressed surprise at the reaction of the public about the shortfall of available PS3 units for sale in the upcoming launch. He said that things like delays are to be expected in the debut of any intricate electronics equipment. "I think the idea of worrying about a delay in PlayStation is slightly strange to me. Every complex technology runs the risk of delays. The point really is that PlayStation 3 is already finished and has been tested in America and has been deemed a creative success. In the end that is what counts."

While creative achievement is certainly an important factor for Sony, in reality, the company must turn the PS3 into a business success in order to remain competitive with the entries of the Nintendo Wii and Microsoft Xbox 360. According to a statement released last week by Sony, the electronics giant is expected to lose $1.7 billion in the wake of the PS3.


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Author: GamerNode Staff View all posts by

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