PS3 making more money on games than they lose on hardware.

[drkohler]

TWRoO said:

Jandre002 said:
You all really think that Sony doesn't make money on the PS3 when you balance out the cost they are losing per console (remember the new SKU) vs the amount they are making off of PSN and disc based software sales?

I think you all are wrong on that. I'd say Sony is losing at most like $15-20 per console sold. I think now, at the $399 price point and with the newer 80gb model that the PS3 as a business alone is making money. Maybe not very much money (under 50 million), but making money nonetheless.

Then explain the miniscule amount of profit they made last quarter.... as I have stated before, the PS2 and PSP businesses are obviously a lot more profitable than for PS3.... and even each of them singularly should be making more than $50million even in slow quarters because:

Everybody seems to pray the "PSP and PS2 have been making tons of money in the past quarters". Here is a little surprise for you: the PSP has probably become barely profitable _now_ and the PS2 doesn't really make any significant profits anymore. There are several reasons for this and I am not going to argue about them (believe it or don't, it's the sad truth and explains why Sony is continuing to sell the PS3 at maximum allowable price levels as long as possible - it has already turned into their primary cash cow now).