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Squilliam said:
If the hardware losses as implied are this low, then they must be losing money on something else. There are only 3 areas where they have big enough expenses to really lose all that money.

1. Advertising? They must be spending a lot here.

2. Game development? Face it, all HD publishers have been making losses and I doubt that Sony is any different.

3. Research and development? If they're spending heavily here, it means Console number 4 is inbound sooner than you think.


Advertising is a sink hole for dollars. HD publishers arent first party. I doubt Sony loses much here considering they get a good chunk of the money compared to third party. And R&D is very possible. Ps4, PSP 4000, Ps3 slim, PSP Go 2000 are all logical to assume are being woorked on.