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badgerfan20945 said:
some of you must understand what sony is doing. They are trying to propell a new format, Blu Ray, to the public to bring in the Hi def experience. Since the PS3 is losing money during production, there bound to lose money right now. But look into the future, 3-4 years from now, Blu Ray will become the format that sets the standard and replaces dvd. So Sony can take losses in the gaming division for some time as long as Blu Ray is successful, and so far it is, Comparing it to HD DVD.

True, but they are doing this at the risk of wrecking the PS brand. Assuming that Sony made money during the whole life of the PS2(I'm fairly sure it did), the PS brand has proven to be profitable. Blu Ray has potential, but we still don't know just how far it will go.

Even if Blu Ray becomes the standard for movies, what if this success is at the cost of the PS brand and possibly Sony's name in video games.

Will Blu Ray be more profitable than the PS brand, and make the possible loss of it worth the risk? Maybe; Maybe not. Sony has taken this risk with the PS3, and only time will tell if they can succeed with this strategy.