Sony has lost over $3 billion on the PS3

[PS3-Playb3yond]

Whoa! Found this straight from Yahoo! front page.

Sony has lost over $3 billion on the PS3

Here is the whole article: -

Think you paid too much for your Playstation 3? Don't expect any sympathy from Sony.

In the company's fiscal 2008 annual report, Sony revealed that they've now lost roughly $3.3 billion (that's billion with a B) on the Playstation 3 since its launch. That breaks down to $2.16 billion in 2007, followed by a notably smaller but equally daunting $1.16 billion loss in 2008.

The reason? Pricing the console below its production cost. That's right - that hefty $599 you paid for the PS3 back when it first launched was significantly cheaper than the cost of producing it in the first place, and while the retail price has come down some, the losses keep piling up.

Investors have reason to sweat. In a statement, Sony claimed "the large-scale investment required during the development and introductory period of a new gaming platform may not be fully recovered." They went on to note that they've invested a great deal of money into R&D for the console, a sum they might not be able to recoup if the PS3 "fails to achieve such favorable market penetration."

Sony fanboys should take heart, however. Losing money on hardware is relatively common in the video game biz, as companies routinely lower prices to sell more units and thus stimulate software sales. Sony's game division saw a 26% sales spike last quarter, a trend they expect will continue on the strength of strong exclusives like the recently released Metal Gear Solid 4 and the upcoming sequel Resistance 2.

But will it be enough?

[lildawgryan]

has already been....

[ThePhantomOak]

Wow...

Yahoo news sucks ass...

[Unknown27]

[IMG]http://i164.photobucket.com/albums/u7/erickdimalanta/Others/kazwatup*****es.jpg[/IMG]

[MOONPHASE]

Originally Posted by lildawgryan

has already been....

posted already

[phranctoast]

Sony will make it up with blu ray licensing fees. The trojan horse worked, but they need to wait a bit before they see the return.

[MOONPHASE]

if Sony keeps making the PS3 and PSP better with more new games and keep Playstation 2 running i think 3 mil will be like just a small paycheck to add for them like with PSP theres hardly any games coming out but yet Japan keeps getting all of these new games for PSP, Playstation 2 keep it alive by bringing in more games from Japan that we dont have, Playstation 3 get more great exclusives like Metal Gear Solid 4. Plus with these system updates they just keep drawing people in by making it better by the day

[Terjyn]

Copied directly from the post I made yesterday when someone else posted the exact same thing.

This was announced *over a month ago*.

Everybody who's posted it this month got it wrong, it's the Fiscal Year '07 report that says they lost 3 billion dollars, we are 9 months away from the FY '08 report.

Furthermore, saying there's a combined 3 billion dollar loss is dumb. The Xbox franchise has a combined 6 billion dollar loss, do you think Microsoft is somehow going to drop the 360 in spite of the fact that (finally) the 360 is making money?

In short, I can't believe how much shoddy journalism there is on this issue. Kotaku decided to post the thing using the "2008 report"(technically true, the FY07 report came out in April 2008) and everybody and their brother is misinterpreting it, and reporting falsehoods.