Sony Lost $10 Billion On PS3, SCEI Is Being Broken Up Right Now Posted by Zach Morris at 12:08 PM on April 09, 2010 delete edit comments (0)
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- SCEI lost 900 billion yen($10 billion) on PS3 to date, including losses from CELL foundry to Toshiba.
- SCEI is in the process of being broken up into two pieces by Sony management.
- "New SCEI" assumes SCEI's hardware assets.
- "SNE Platform" assumes PSN business and is being merged into Sony Corp.
- "SNE Platform" will survive as the backbone of Sony Corp's network strategy, providing content to Sony's Bravias and Blu-Ray players.
- "New SCEI" could be shut down.
If you are wondering why SCEI disabled Linux boot on all PS3s, they are a skeleton operation now and no longer has any resources to support Linux.
Sony already cherry-picked what it wanted from SCEI. The remainder could go bankrupt without affecting Sony.
Neo-SCEI is basically looking like the Sega of 2000. When Neo-SCEI runs out of what little cash it has in hand, that's it. It files for bankruptcy and closes shop. Unlike SEGA, Neo-SCEI doesn't have a multi-billionaire owner to save them.
Howard Stringer already prepared for this bankruptcy; he cherry-picked the desirable assets he wanted from SCEI and merged them into Sony Corp, leaving undesirable assets at Neo-SCEI so that its closure or bankruptcy would not affect Sony's long term network strategy.
SCEI as we know it already doesn't exist anymore, that legal entity already ceased to exist on April 1st, 2010. And this was happening behind closed door.
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