If it's not the only reason then it will be the biggest reason easily.

but SCE profited the years before the release of the PS2 and PS3... surely the R&D on the PS4 shouldn't have such an impact.. that would mean that their profits is really, really low..

Yes. We are the devil and bad things are good bad good whaterver for us.

Why? In the years prior to the PS3 release SCE was profitable.  Obviously it was buoyed by the great selling PS2, but it also didn't take anywhere near a 1 billion dollar loss against the previous FY until the PS3 was released and sold with heavy losses.

Microsoft losing 229 million last quarter is more murky...we don't have the transparency of looking exclusively at their gaming division, which is what this is showing. We also know that they've invested in other areas of its' E&D division, namely payments to Nokia for Windows phone and the recently revealed Surface tablet.

You're being a bit abrasive in this thread. No one is in trouble, just that this thread is a bit heated.

Sony doesn't really have that many Japanese games to make a huge difference.

The biggest thing would be getting Square Enix for sure, that's really it.

I really want to see some evidence to the idea that SCE as a whole from the beginning is in the red because of the PS3. I do not believe that.

Well I stopped responding. I don't really care that much to respond that much anyway, and I seldom enter sales threads.

I don't know if that is true or not however give me 20minutes and I will pull up the financial information pre 2000 and let you know.

EDIT: Hmm looking a little tricky. The Game divison only comes into existence as a separate entry in 1996 two years after the release of the Playstation. So all early losses due to R&D plus the first two years aren't available. Will gather the rest at least. 

It's a combo of PS3 and PSVita I'm guessing. 

But it's hard to believe that they don't have back-up cash from their PS2.