I just remember this old interview,
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You have spent three billion dollars on the Playstation 3, disregarding research and development. Can you ever get your money back?
Stringer: Not for as long as I live (laughs). It will certainly take some time. The traditional business model for the Playstation envisaged us making a loss with the hardware in the early years until the production costs had decreased to a point that enabled us to break even. In the meantime, we earn money with the games. We are currently at the stage in which we need to get a grip on the production costs. That takes time. We are already making more money with the games than we are losing with the hardware.
http://www.welt.de/english-news/article2358382/Future-of-Sony-Ericsson-uncertain.html
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That's also the quote cited above about how it's earning more on software than losing on HW. Question: Is it fair to disregard R&D? Did Sony spend a lot on developing PS3?
