Sony Lost Over $3 Billion To PS3 Cost - console
(hx) 11:09 PM CEST - Jun,23 2008
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Pricing
the PlayStation 3 below its production cost caused Sony to lose $2.16
billion in 2007 and $1.16 billion in 2008, the company revealed today. In order
to stay competitive, said Sony, it had to invest large amounts of money in
research and development to introduce the PlayStation 3 into the market, and
these sorts of expenditures don't always get recouped, especially if a platform
"fail[s] to achieve such favorable market penetration... resulting in a
significant negative impact on Sony's profitability." Even if it can recoup its
investment, Sony said, it's still possible to have lost large amounts of money
on the platform's introductory period, and even a successful PS3 might take a
while to replace what it cost to produce. These possible outcomes are currently
a risk for the company, Sony said.
Heh, I wonder if all of the development loss is being piled into the PS3. How
much of the PS3 development costs went into R&D for BD mass manufacture. Given
that the PS3 is spearheading BD adoption and giving Sony a platform for digital
media downloads, now that the connect store is closed, Sony may just be putting
all of it's losses in a single accounting bin. No matter how you look at it Sony
thats a lot of money. No where near what MS has lost but then again MS doesn't
care about profits... |
Updated:10:44 AM CEST Sep,20
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