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Carl2291 said:
Checked the thread over on GAF and saw this...

http://mandetech.com/2012/01/10/sony-masaaki-tsuruta-interview/

Mentions that the Cell on PS3 cost $400 Million to develop. It says the engine used for PS4 could actually cost up to $1 Billion. Could something like this actually be a cause for the loss? Not all of it, obviously, but a large chunk?

Well that could potentially waste that mound of money that they got from PS2 I was talking about earlier.