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Pretty much all of the gaming divisions losses in the past few years can be attributed as an investment in future Blu-Ray income. The PS3 carried Blu-Ray to victory, and its also why the PS3 cost $600, instead of $500, when it was released.

The income from that strategic victory by Sony will dwarf the R&D expense of the PS3, by comparison, over the next 15 years, by royalties from BDs alone. SCE is awesome -- they have never, ever, let Sony down in the grand scheme.