Sony Loses Over $3 Billion on PS3 Investment

Here is another example of Sony admitting the obvious. Sony finally states that it has lost money on the PS3. More specifically though, $2.16 billion in 2007 and $1.16 billion in 2008. This is seeming to be a new trend for Sony to start stating everything we already know in an attempt to be forthcoming and sincere. The main reason for this loss is due to the fact that the PS3 costs so much to produce. If you were to compare the Xbox 360 and the PS3 you would see the PS3 more powerful but costs more, and the Xbox 360 better graphics and less money. Now when a consumer sees the two products lined up like that, I would go with the cheaper and better graphical console any day. Sony's fiscal 2008 annual report highlights the fact as under,

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The large-scale investment required during the development and introductory period of a new gaming platform may not be fully recovered.

Oh, good call Sony. Considering that the Xbox is producing more games, and is still competing in console sales, it seems a pretty slim chance to make up that $3.32 billion you've lost. Maybe this might teach you a lesson Sony. If you can make something that the consumer wants for less money, then you do it! What is the point of having all that power if no one buys your console? You had to undercut your price of production by hundreds just to sell consoles.

Although the PS3 might have a lot of flaws, we can probably expect much to change in the coming of the next console. I'm sure the price will be much lower, and they will master the element of balancing graphic and power in the console.

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Via: Kotaku