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Dgc1808 said:
Your calculations don't factor in the cost of keeping PSN up, resources for game developers, research and development, advertising, etc.

Is PSN not self-sufficient? Isn't PSN expected to have $500 million revenue this year (or maybe next year)? Surely Sony sees enough of that to cover dedicated servers for games, the store, downloads etc. Resources for game developers: Wouldn't that eventually come back as profit on the games in the future (so, KZ2's profits would be covering the resources for GT5, which would cover KZ3 etc...obviously not directly like that, but in effect). R&D would be extremely expensive yes, but what would Sony be R&Ding right now that would be costing $10s of millions per week? And advertising, I include that in marketing, which brings me back to one my main questions: Is the advertising *that* high?

 

Edit: Typo in opening sentence (Is PSN not self sufficient originally said "If PSN")