Sony has lost $3bn on the PS3

[Mark]

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?

Source: Yahoo!

[bahirzaheri8]

I don't think Sony will profit from the PS3 but its very cool! They are gonna release a new firmware so you can record gameplay while playing and then easily upload to sites like youtube

[Raymond]

I believe it is cheap since it has such a powerful processor!

[utkarsh30june]

Yes, a 9 Core Cell Processor (Each Core at 3.2 GHz speed) plus the best entertaining device just for $599. That's a loot for those who can afford it.

[brayden]

it would have been way more popular if they released it around the same price as the Xbox 360.

[ismailtahir]

and will be more popular if blu-ray price is reduce. bare in mind , when dvd newly came in to market the price is almost the same with current blu-ray price

[Mark]

I havent bought a single blue-ray disk since it came out.. good old DVD for me..

[utkarsh30june]

Blu-Ray price will be down to normal like DVD in 5 years or so


BTW,This is my 1 Giga (1024th) post

[xje4bv]

I havent bought a single blue-ray disk since it came out.. :

Me too, but I have downloaded plenty...

[bahirzaheri8]

I have downloaded only 4 blu-ray movies