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Soundwave said:

a) The PS2 was not redesigned last year, it was redesigned the year before that. 

b) The PS2 is earning them money, not losing them money, lol, your company would have to be run by monkeys to have a 9 year old product lose money. 

c) Think about it, Sony didn't just lose $260 million dollars ... what this mysterious "black hole" is in their game division is sucking away their profit from the PS2 and PSP. So that means this "black hole" is likely costing them in the vicinity of $300-$400+ million in losses. 

d) Sorry, but I don't buy that a PSP redesign costs them almost a half billion dollars, lol. 

a) The redesigned PS2 appeared around feb/mar last year, in Europe. That left a lot of unsellable old PS2 to be returned...

b) You think Sony makes real profit selling a PS2's at $99 (remember when Sony removed the two PS2 chips from the PS3 and saved $100 according to many "analysts". Go figure if those two Ps2-core-chips alone saved them $100)?

c) You very conveniently left out the key points of my post.

d) I don't know where you got that idea from. Certainly not from my post.

There is no question that Sony is still losing too much money from the production of PS3 (not from the manufacturing of the PS3). The reason is everyone's guess (although there is a rumour that Sony was pulled over the table by NVidia. But that 3-year contract ends in the near future and let's hope that better business people are in command now).