HappySqurriel on 04 April 2008
In terms of gaming related revenues alone, the Playstation and PS2 were profitable because their massive userbase brought in massive revenues from the licencing fees from the sale of third party software. Now the higher R&D costs, (potentially) higher hardware losses, smaller userbase, and greater competition will hurt Sony's ability to turn as much of a profit as they did in their previous generations ... Hypothetically speaking, Sony could take this as an opportunity to focus on building a much better (or at least better selling) first party software line-up much like Nintendo did with the N64 and Gamecube.
