For those people that don't want to believe that the PS3 is losing money on each system, the SCEE President David Reeves said himself that they "still make a loss on hardware". The iSuppli estimates seem to fall in line with what Reeves has said.
http://www.thebitbag.com/2008/12/19/no-price-cut-for-ps3-anytime-soon-at-least-in-europe/
Firstly, can you give us an update on the progress made by the Sony games business this year?
Two years ago we lost $2bn dollars globally on the SCE business – we thought at the time it was a lot of money, but in perspective with things like Citibank it’s not that much. And last year we lost $1bn dollars.
Our target this year is to break even, not on a cumulative basis, but on an operating business. Our point of view from the 100 markets we work in, we have PS2 which we’re making a profit on, PSP where we also make a profit, and PS3 where, if we just look at it in Euro terms, we are in a profit on software even though we still make a loss on hardware. It’s likely we will get into profit in Europe this year. So SCEE is a solid, safe pair of hands for SCE.
