Slow Launch Expected for Sony PS3

Mitsubishi UFJ Securities has lowered their rating from “3” to “2”, effecting estimates on PS3 sales. Earlier today, Sony Corp. shares fell more than 3 percent. Sony has refused to comment, but analysts had the following to say:

In the medium term this would mean that it would take longer for Sony to recover its huge investment in PS3 and thus we are downgrading the stock.

Similar to the PS2, Sony has set a realistic goal to earn actual profits roughly 5 years after the PS3 game consoles initial launch.

This most recent news is not as negative as it may seem though. If sales are slower during the initial launch of the PS3, this will actually benefit Sony Corp. in the long run. This is due to the fact that each console they sell at launch will actually result in loss.

As stated earlier this year by the company, they expect and are prepared for a $860,000,000 loss this year alone.

There is absolutely no need whatsoever for the corporation to panic. This is all part of the cycle for typical game console manufacturers to experience loss like this, because it’s just a matter of time before they generate enormous profits.