Sony to report a billion dollar loss last quarter!

When the XBOX launched back in 2001 Microsoft has lost about 1 billion dollars every year, but when the company as a whole makes billions in profit each year it becomes a little less problematic. 

Bill Gates has the know how and money to operate a successful business and when I say money, I mean money (lots of it).  In business there is a saying that goes: you have to spend money to make money and Microsoft knows this that's why they operate at a deficit to eventually make money and it looks like Microsoft's game division will start turning a profit next year considering their losses were way down from last year not to mention a game called Halo 3 is on the horizon. 

Sony's Playstation brand has been a cash cow for the company for over 10 years and it's fanboy's have always thrown jabs at the XBOX brand for how much money it looses by saying: Microsoft should ditch the XBOX because it's a failure, it never makes money.  Well it looks like these fanboys just might be eating their own words. 

According to an article on Gamespot.com, Bloomberg is predicting Sony to report a billion dollar loss last quarter, not last year but last quarter no thanks to the PS3.  I'm sorry but that is absolutely staggering, Sony is not as big of a company as Microsoft so they cannot continue that trend and I wonder how much they would have lost if it wasn't for the shit load of PS2's sold.

Sony is in a situation where they can't lower the price of the PS3 because if they do then they will lose more money but if they don't then they will sell less PS3's, boy I would hate to be in their shoes.

Sony is expected to report its quarterly earnings tomorrow, and a group of analysts are bracing for bad numbers, according to a Bloomberg.com report. The financial news site obtained predictions of Sony's quarterly results from 11 industry analysts, and the group's median estimates for the electronics giant were a company-wide loss of 75.8 billion yen ($630 million), with revenues up 9.5 percent to 2.02 trillion yen ($16.8 billion).

As for the culprit behind those projected losses, they appear to be due to the game division and then some. Bloomberg said responses from five of the analysts pegged Sony's game group as posting a quarterly loss of 121 billion yen ($1 billion), completely wiping out expected profits from the rest of the company's divisions. The gaming business more than offset gains from Bravia HDTVs and the box office performance of Spider-Man 3, according to the report.