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The PS4 is smashing records as Sony expects an additional $200 million blow

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Yesterday, May 1, 2014, Sony announced that they expect an additional $200 million loss. This brings the total expected loss up to a terrifying $1.27 billion. This will surprise some considering that the PlayStation 4 surpassed Sony's expectations by selling 7 million PlayStation 4 units. We sometimes forget that Microsoft and Sony are more than gaming powerhouses.They do not rise or fall on gaming alone. This fact is what is causing the financial woes for Sony at the moment.

More specifically, their home PC business, that they are trying to separate themselves from. Evidently exit costs are rather significant. Another portion of the loss is a direct result of their disc based sales. Consumers no longer rely on physical media aside from gaming. Music and movies have become predominantly a digital based business.

This is a struggle that Microsoft itself has faced, trying to decide if Xbox should separate from Microsoft, becoming a profitable entity on its own. Likewise Sony has faced a number of difficult years outside of the gaming arena. They are intent on addressing that, which is why in order to curb future losses Sony has decided to step away from the PC manufacturing game.


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