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Sony ordered to pay $250 million in back taxes

30 June 2006 6:05 by Dave "Davedough" Horvath | 51 comments

Sony ordered to pay $250 million in back taxes Recent news has shown some possible insight as to the price point of Sony's newest gaming console, the PS3. At the gaming industry trade show known as E3, Sony shocked the world when it announced it's new PS3 will go on sale for an astounding $599. Could it be that this inflated price may have been a foreshadow of their financial outlook?

The Tokyo Regional Taxation Bureau notified Sony and Sony Computer Entertainment Inc that a reassessment of reported profits for the financial year ending March 2000 through to March 2005 resulted in a 74.4 billion Yen difference in their taxes. The tax bureau then ordered Sony to pay an additional 27.9 billion yen ($243 million) in taxes related to transactions between its game unit and its U.S. subsidiary.

"Sony and SCEI believe that their allocation of income for the periods in question was appropriate and that they have paid the proper amount of taxes in each of the jurisdictions," Sony has said in a statement.

Source:
Reuters


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    Discuss this article!  There are more user comments available, read them here
    Brewluvr (Newbie) 1 July 2006 13:32 Send private message to this user   
    Seems a bit ironic: One of the loudest voices against software/movie/music piracy may well be involved in tax piracy! Sounds like another case of "...the pot calling the kettle black...". Maybe the government should issue money on Blu-ray discs so it wouldn't be so easy to steal!!! Forgive me if I laugh out loud, but this is good stuff!
    Pittfan (Member) 1 July 2006 13:48 Send private message to this user   
    hahaha ..steal , Do whatever but SONY wants # 1 spot!
    I hate SONY
    ZippyDSM (AfterDawn Addict) 1 July 2006 14:17 Send private message to this user   
    vgaddict8
    *falls out of his chair*
    thats like saying if MS went the PC would dissappre
    Sony is not even 1/3th of the market if they up and vanshied the games published by them would be took over by someone else and life will go on.

    Brewluvr
    If it effects the bottom line they will try and whine about it *L*
    vgaddict8 (Inactive) 2 July 2006 11:17 Send private message to this user   
    As far as I am concerned.....the videogame market only consist of Sony and Microsoft. SONY is the GODFATHER people.........Without them... videogames will be RETARDED and we would be playing only games made for 2 year olds. LONG LIVE SONY!!!!
    ZippyDSM (AfterDawn Addict) 2 July 2006 12:09 Send private message to this user   
    vgaddict8
    Uummmmm no....
    If the PSX didnt come along,Sega would still be makeing systems and share the welth of games with nintendo ,sicne the cube soem M rated games and soem T rated games you cant call the Cube a kiddy system,plus sicne the n64 days nintendo is not goign to turn away M rated games.

    the Xbox has stolen PC games to build itself up so meh,its ture the Wii focuses on everybody gameing frist but the reasn for it is becuse of the PS2/3 and Xbox ,they dont ahve to spend more moeny to have a wider selction of games,and the qauilty of some frist party nintendo games are better than anythign seen on the other systems in years....but then again dose one uber grate game repalce 5 ok ones? *L0L*



    I have a brain...I think......

    Windows Vister
    I dub thee vister untill thee can prove thyself.

    I aint the brightest bulb around but I can feel my way in the dark...

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    FIGHT THE M.A.F.I.A.A.
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    chubbyInc (Member) 2 July 2006 19:36 Send private message to this user   
    Sony might have more games then any other system, but almost all the games suck. The only reason a person would buy a playstation is to play a so called good game that is not available on any other system. Half you people shouldn't comment on the graphics or quality of other systems! Your parents probably bought you your PS2 and a few stupid games and all you can do is put down other systems to make yourself feel better because you can't afford a 360, let alone the original xbox. Sony should be ordered to pay back all the people who have bought their stupid games. Games available on multiple systems is a good way to go gives people a choice of what system they want to play the game on, MGS4 won't be available on anything else because that is the only game which is wanting people to buy the PS3.
    TigraoZT (Inactive) 2 July 2006 19:49 Send private message to this user   
    The best pack, the best console, the best games, Backward, bluetooth,WiFi ready, HDMI, 1080p, blue-ray.

    nothing else to say!
    hot_ice (Senior Member) 2 July 2006 22:15 Send private message to this user   
    Sony makes enough profit to pay the quarter of a billion dollars.
    21Q (Senior Member) 2 July 2006 22:32 Send private message to this user   
    Even if sony has all that money to have so much taxes, I don't care. I still want PS3 and im going to get it, unless it;s the $500 version, then no.
    I wouldn't be suprized though of sony ripp's us off and tells us we're paying $40 a month to play online.
    ironD (Inactive) 3 July 2006 3:12 Send private message to this user   
    Just maybe they have been spending a little too much time and money on DVD protections, instead of considering their bottom line hmmmmm

    D
    ZippyDSM (AfterDawn Addict) 3 July 2006 4:47 Send private message to this user   
    chubbyInc
    when you ahve 3 or 4 times the numver of gams anyone else dose its oging to look like

    A.you are the best becsue you have the most

    b.Most of the games suck (but if you avrage it out the PS3 has as mnay desent games as half of all the Xbox games)

    and theres always C

    SOny suxs becuse its not XBOX *L* or whatever *L*
    Jamaal10 (Senior Member) 3 July 2006 5:27 Send private message to this user   
    Quote:
    I wish I could lose track of $750 Million.
    Man, aint that the truth! :)
    ZippyDSM (AfterDawn Addict) 3 July 2006 5:35 Send private message to this user   
    Jamaal10
    shit I lsoe track of 10's 20's and 30's 0-o
    I bleed moeny ><

    of corse it might help if I stop getting a radom game a riend is loking for *L*
    hot_ice (Senior Member) 3 July 2006 18:44 Send private message to this user   
    Anyways, Sony will compensate for that 250 million dollars, and guess who is going to have to pay it, the fans.
    CoreBus (Inactive) 3 July 2006 23:04 Send private message to this user   
    good point the wii will prolly win cuzz it is more affordable for the comman man the ps3 is barking to much money for a game console i computer i can see that much money ya ur prolly right the wii will come ontop of of the next gen consoles

    Burner: HP DVD±RW ±R DL LightScribe
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    hot_ice (Senior Member) 4 July 2006 7:22 Send private message to this user   
    The Wii is well priced, I just don't get why the Xbox and the PS3 missed the boat.
    ZippyDSM (AfterDawn Addict) 4 July 2006 16:05 Send private message to this user   
    Hot ice
    I wouldnt be suprised that all coperations are owen buy one larger coperation like the coffe houses in Dues ex 2,they way thigns work out one is good for 5-10 years then anothers turn..then anothers turn 0-o
    its freacky..I eman they could amke a kiling with the PS3 with a upgrade model 299 base,190 for the HDMI things and 30-50 a pop for the rest,sell the complete high end for 700...but nnnoooo....
    mabye I'll buy my PS3...in peices.... *L*

    I have a brain...I think......

    Windows Vister
    I dub thee vister untill thee can prove thyself.

    I aint the brightest bulb around but I can feel my way in the dark...

    I fuzzy braind mew =0_o=

    FIGHT THE M.A.F.I.A.A.
    "Music And Film Industry Association of America.."
    rbrock (Senior Member) 5 July 2006 12:13 Send private message to this user   
    Don't buy their cheap dvd burners the DW-Q30A they don't burn movies right They burn but they all have LEGOS in them !
    vgaddict8 (Inactive) 5 July 2006 12:48 Send private message to this user   
    Nintendo Wii?............Don't make me laugh!!!!!! Mark my words!!......The Wii is the virtual boy 2!!! And anyone with half a brain knows what happened to the virtual boy.
    ZippyDSM (AfterDawn Addict) 5 July 2006 13:16 Send private message to this user   
    vgaddict8
    UUmmmm no,qauilty will always kill eye candy and quantiny,the WII is currently the system to get for me,might put off gettign the new zelda game and wait till Metroind prime 3 rools out,it shall kicks halos ass :P *L*

    I have a brain...I think......

    Windows Vister
    I dub thee vister untill thee can prove thyself.

    I aint the brightest bulb around but I can feel my way in the dark...

    I fuzzy braind mew =0_o=

    FIGHT THE M.A.F.I.A.A.
    "Music And Film Industry Association of America.."
    dufas (Member) 7 July 2006 13:09 Send private message to this user   
    Sony is no different than any otherlarge company that wants to run the world......They are against their copyright infrigemnt but wasn't it not to long ago that they, along with BMI got caught selling someone elses music..????

    It is a "Do as I say, not as I do".....world.
    kearney (Inactive) 11 July 2006 7:06 Send private message to this user   
    ZIppyDSM

    you're right, the wii is currently the way to go. Cheap, small, fast, and hopefully fun, with no crappy games.

    anyone who thinks differently, just look at the games that are produced for the PS2. Most of them are mediocre at best. As for the gamecube, I have 20 games, I love all but one. The PS2, I have bought so many games, and after 20 hours, traded them in for something else. Anyone who is willing to pay $600 US, for a glorified computer, that will most likely continue the trend of mediocre games, be my guest. In fact, Sony is counting on you.
    i_t_Xpert (Inactive) 12 July 2006 13:12 Send private message to this user   
    You get what you pay for...... If your going to buy a PS3, you are going to get the fastest computer on the market that comes w/: Bluetooth (Very Big), Internal Blue Ray (This by itself cost almost as much as the PS3), Linux (The possiblities are endless), BACKWARDS COMBATIBILTY, and the list goes on.

    With that being said, Sony is just going to give free online play unlike XBOX 360.

    All in all, Sony is actually losing somewhere around $300 per PS3 that they sell.

    I suggest all of the XBOX supporters do your research on Linux. Linux is way more supported by programmers and communities around the world and IS MORE STABLE!

    Further more, why support Bill Gates? PEACE!
    Pittfan (Member) 12 July 2006 13:23 Send private message to this user   
    Xbox users already know about Linux so what's your point ? . How do you think we apply Softmods
    i_t_Xpert (Inactive) 12 July 2006 13:47 Send private message to this user   
    DO THEY KNOW ABOUT LINUX? My point is PS3 w/Linux is going to dig XBOX 360 grave. I guarantee you they will have an emulator on PS3’s Linux were you can put in a XBOX 360 games/ and or .iso and play them with in the 24 hours the PS3 is released. Remember when the PSP came out……

    When you invest in a PS3, you won’t have to worry about your unit over heating like the XBOX 360.

    MARK MY WORDS, PS3 will make the XBOX 360 look like it swings from trees. PEACE!
    ZippyDSM (AfterDawn Addict) 12 July 2006 14:54 Send private message to this user   
    kearney
    TO ture the Wii is it for msot gamers,fanboys and hme theater buffs will get a PS3 regaurdless of what others say.
    the PS2 is a good all around system however the medicore games can waer on you,I ahve no dout in time the PS3 willb e the same altho it has alot more to go thru to get there.....

    i_t_Xpert
    Unless you have 700 to kill on day one most are better off to wiat untill the PS3 gains some of its...mmm hidden poteninal untill then its over priced for what 1 or 2 great games with the rest beign the best coperate devs can think up...price vrs cost I would rather wait and spend 300-400 on a medicore next gen system and I am not talking about the 360 either *L*

    the 360 is not bad but not worth the current price the same can be said about the PS3 unless you have alot of money or a fanboy,altho unlike the 360 it has a ton of poteninal I knw the modding comuinty can do soemthign with it but will the corpate side amke thigns more annoying or go status quo and make the next geration of sub par eye candy games....what good is the PS3 if most titles in the frist year suck?

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