Gamerace on 14 March 2009
Sony's business model only works if they are the dominate system. If PS1 and PS2 had been 3rd place systems they would have lost money too. Sony takes a loss on the hardware expecting to make it up on the immense software sales.
But even then the loss on PS3's was much greater than originally anticipated and the software sales far lower than they ever imagined. They are screwed this gen (overall net profit-wise).
I expect them to follow a Nintendo business model in future where you sell hardware at a profit.
