Sony Lost Over $3 Billion To PS3 Cost, Pricing Imbalance

[wraggster]

Pricing the PlayStation 3 below its production cost caused Sony to lose $2.16 billion in 2007 and $1.16 billion in 2008, the company revealed today.

Sony's fiscal 2008 annual report delineated potential risk factors to its investors, outlining that "the large-scale investment required during the development and introductory period of a new gaming platform may not be fully recovered." The loss figures were provided as an example of the "significant negative impact" introducing a new platform can cause at first.

"In the past, large-scale investment relating to capital expenditures and research and development for the manufacture of key components, including semiconductors supplied for [PlayStation 3] was also recorded within the Electronics segment," the company said.

http://kotaku.com/5018899/sony-lost-...cing-imbalance

[JKKDARK]

But even if they still lose more money, it will not be a problem for a big company like Sony or Microsoft.

[mcdougall57]

Thats a lot of money, how many consoles and games would they need to be sold in order to even make a profit?