Do you think Sony will ever make a net profit from the PS3?

[johnlucas]

Darc Requiem said:
No they've lost too much money. Even if they managed to somehow pull PS2 numbers they'd still be in the red. The PS2 only made Sony 1 Billion dollars in total profit. Its the prime reason Nintendo continued to bank huge profits despite low sales. Nintendo doesn't use a loss leader business model. In order to make a significant profit with the loss leader strategy, the product most overwhelming dominate its industry. The PS2 did, the PS3 has not.

Darc Requiem.

A Requiem for Truth.

Cant say it any better than this.

Loss Leader in reality equals Loser, a Leader in Loss.

It's always a bad business model. At best it should always be used as a introductory or transitory phase to break into a business or to make things happen in your favor for the short term. 

John Lucas