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.