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davygee said:
Deguello said:
I think another often cited but little proven "fact" of the PSP's "success" is the notion that Sony is making a profit on the PSP. I have yet to ever see this being the case and in fact hear stories to the contrary, as poor game sales and loss leader strategies combined with the PS3's failure to take off led to their recent Games Division loss.

On the other hand, I have yet to see proven fact that the PSP was costing more to make than they sold them for on release apart from floated around rumours!?

Thinking sensibly. If the PSP was still making a loss, then why reduce the cost of the unit significantly 2 years after it's release meaning it would still be making a loss and a bigger loss at that.

But isn't that what the PS3 encountered? A price reduction while the console is being manufactured at a loss seven months into its lifespan?

Edit: Not that I think the PSP is actually selling at a loss.