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No, you're not right about that. But Sony did most definitely plan the losses. They knew what the tech would cost, it didn't matter how many PS3s Sony sold at the start of the release. They _lost_ money on every PS3 sold. The more they sold, the worse their position was.

I strongly believe Sony predicted the losses and was waiting for the moment when they started to make a profit and have the system at a reasonable price for the public.