Starting a console is always a bitch.

Losses incurred through R&D, marketing, and manufacturing are normal and manufacturers tend to recoup costs via software and peripherals — it’s a costly business. For the Playstation 3? It’s even more costly. Unless you’re using readily available and affordable parts (like the Nintendo Wii), you’re going to rack up a lot of expenses. Couple that with a below cost pricing strategy and you’ve got a recipe for major losses.

$3.31 billion worth of major losses.

Ouch. They could improve the situation, but it’s going to take a monumental shift in hardware and software numbers. I don’t see it happening anytime soon, though. Not with the current economic situation anyways.

For Sony’s sake, I sure hope winning that high definition format war was worth it… In other news, you can check out additional Sony console related numbers here.

This entry was posted on Monday, June 23rd, 2008 at 5:50 pm and is filed under Entertainment News, PlayStation 3. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.