How are Sony losing so much money on gaming?

[heruamon]

Icyedge said:

BoneyBoy said:
@icyedge - Sony is nowhere near making money on the ps3 bro.

In their earnings report last quarter sony said hardware is NOT profitable and they lose 10-20% of the retail cost. The psp and ps2 are profitable. The ps3 losses are eating up all their profits.

Sony does not expect their games division as a whole to be profitable until 2011.

http://kotaku.com/5408318/sony-outlines-gaming-turnaround-sees-ps3-profitability-in-2011

What I said wasnt a point of view, it was a CEO statement.

Link? Please...