According to UK technology site vnunet.com, Sony are looking at a total loss of US$2 billion from the cost developing and manufacturing their PS3 hardware. As it currently stands, the company has already lost more than US$1.65 billion.
According to Sony at their Japanese shareholder's meeting, "This deterioration was primarily the result of the loss arising from the sale of the PS3 at strategic price points, as well as other charges associated with preparation for the launch of the PS3 platform."
The article goes on to discuss their stance on the dwindling PSP support, with the company describing it as "ambiguous" in the marketplace. Read the full report here.
While this might sound like more doom and gloom for Sony's besotted next-gen system, it should be noted that Sony make significant profit from software, rather than hardware; any refinement of the manufacturing process will also stem these large losses. Of course, this also makes a price reduction in the near future less likely.
http://ps3.ign.com/articles/760/760410p1.html
According to Sony at their Japanese shareholder's meeting, "This deterioration was primarily the result of the loss arising from the sale of the PS3 at strategic price points, as well as other charges associated with preparation for the launch of the PS3 platform."
The article goes on to discuss their stance on the dwindling PSP support, with the company describing it as "ambiguous" in the marketplace. Read the full report here.
While this might sound like more doom and gloom for Sony's besotted next-gen system, it should be noted that Sony make significant profit from software, rather than hardware; any refinement of the manufacturing process will also stem these large losses. Of course, this also makes a price reduction in the near future less likely.
http://ps3.ign.com/articles/760/760410p1.html
