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ocnkng said:
I disagree that Sony is losing money on the PS3. Acutally Sony is making a slight profit on every console. Its just that if they reduce the price by $100, they will start losing money and to them its just not worth it to increase the market share that way. Sony has decided to sit pretty at the third spot at least for this season. They know that all they have to do is to make the PS3 survive, and they live to fight another day. Next generation, the console wars begin from square one again.
For folks who think the PS3 is doomed and compare it to Dreamcast, shud keep in mind that the video game market is constantly increasing and unlike the Dreamcast's time there is space now for 3 consoles to thrive at the same time. Sony already have the best exclusives of 2008 http://au.games.ign.com/articles/937/937519p1.html and now with Home they provide undeniable value to the potential customer. This will mean that they will continue to rack up PS3 sales and it will remain a viable console.

 

Fact 1: SCE (Playstation Division) loses money. Lots of it. Over 3 billion from the PS3 launch.
Fact 2: SCE has 3 hardware products, PS3, PSP, PS2
Fact 3: Sony makes money on every third party game sold (around $8 PS3, $5 PSP/PS2)

Please explain to me how the PS3 is profitable. It can be done, but only by assuming that either the PSP or PS2 are making insane losses (which is ridiculous) or that Sony's first party games are so expensive that they generate losses like that (for reference: the most expensive game ever is GTA IV at $100 million, so the SCE loss would equal 30 GTA's being in development). It's either that or the PS3 has to be a lossmaker.