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The Guardian - UK
The Guardian - UK
Technology
Greg Howson

Is Sony losing $260 on every PS3 it ships?

Well, according to the latest Sony financials they could well be. The technology blog has been looking at the figures which show Sony's gaming arm lost around $1.2 billion last year - an improvement from the $2.2bn loss the year before. Of course, console manufacturers, though generally not Nintendo, often suffer losses - caused by high costs/low install base - early on in a console's lifespan. Microsoft certainly did and it appears Sony are continuing the trend. Jack Schofield crunches the numbers.

"On Sony's own figures, the games division made a loss of $130 for each PlayStation 3 shipped. Let's assume that it's making pots of money on the PSP and the PlayStation 2: the PS2 is now hugely profitable and still sells more games than anything else. These two platforms could easily have made a profit of $1.2bn in the year. In that case, the total PS3 loss would have been $2.4bn shared between 9.24m PS3 consoles, or $260 per PS3 -- including any attached Sony games."

What do you think then? Sound like a realistic estimate?

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