The Guardian Article: Sony profits up despite PS3 losses

http://www.guardian.co.uk/business/2007/oct/25/technology.news

This article is very interesting because if you link it to my research it shows that when the article was written the PS3's were not selling very well at all. However, my research states that the sales of the PS3 went soaring up in a 285% sale increase. This is the month following the articles date release, connoting that had the article been written a couple of months later it would possibly have been a very different story.

"But the cost of the components and the time required to develop new software to do the machine justice have hit sales and forced Sony to implement several price cuts, at the expense of profits."

The above statement within the article was very true at the time the article was written but my research shows that now they have sorted the manufacturing costs out so that they gain a profit in each unit sale; therefore resulting in a huge cut-down in production/sales losses. In comparison to the article, my research shows that the PS3 is still behind the Nintendo Wii in sales and, debatably, customer-popularity. However, since the article was published the PS3 has overtaken rival Microsoft XBOX 360 in sales and is getting closer to the Nintendo Wii.

"Sony's return to financial health gathered pace today as the electronics giant reported a jump in earnings in the last quarter fuelled by demand for digital cameras and flat-screen TVs.
But its optimism was tempered by losses in its gaming division caused by price cuts designed to boost sales of its struggling game console, the PlayStation 3."

This very much suggests that Sony have had to rely on strong sales elsewhere in the company to counteract the poor sale of the PS3. However; it is now very different because sales have shot up and as a result of a change in manufacturing techniques meaning cheaper production costs, the console is bringing home good profits.