I wonder how the Blu-ray versus HD-DVD format war works into this - after all, the PS3 is considered by many to be the top Blu-ray disc. Perhaps they are willing to take the loss in one department to benefit the company overall.
That's what happens when you try to capture a optical format market with your gaming machine instead of trying to capture the gaming market with your gaming machine. Cramming blu-ray into that thing was an apparent $4.7 billion and counting mistake.
This is all about who released that gen of console first. The PS2 came out and everyone got an erection and didn't bother with the XBOX when it released. MS got wise to this and released a poor quality, quickly knocked up shitty quality XBOX 360 that RROD'd for everybody who got one, with a long term plan to just fix them (or not) under guarantee. Then nobody bothered with a PS3.
Clever Billy eh? I had to send my 360 back to him twice. And didn't get a PS3. So his plan for world console domination worked. For now.
Most likely we'll see the same scenario again at the release of the next generation.
Cramming blu-ray into it is what gave them the industry and led to HD-DVD going down the toilet. Sony makes other electronics and does very well in those departments. Losing "pocket change" is nothing to Sony as they will make all that back from their other products. Sony products have been very reliable for me and I will always keep buying from them.
4.7 Billion? Haven't they sold less than 100 million units? And since billion is 1,000x a million, they've lost $500 or more per system? Still? Sheesh. That number doesn't even really make sense to me. With only the number and none of the underlying data, it's hard to say where it comes from or what it represents. It seems it couldn't just be -hardware- losses... could it?
Your right the numbers don't add up, chances are they haven't lost much at all, but if uncle Sam believes them that's all that matters. Just think of the tax write offs they have made and the profits they are makeing on software, no wonder their still the King!
I just hope this doesn't come as a shock to Sony. They invest nigh on $100 million in a game like Killzone 2 for example hoping it will do for the PS3 what Halo 3 done for the 360 at a time when the most popular games on the console market aren't big blockbusters but causal games like Rock Band etc.
What is worrying the $650 million loss in only for this quarter, this in addition to the billions Sony have already lost on the PS3 project, it's now becoming less and less likely Sony will ever see a profit on this console.