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irstupid said:

The blu ray player was not what cost Sony billions. It was their "cell" that they bragged so much about as being the greatest thing ever. 

It is exactly the opposite of what you say.

The Cell was a collaboration of three companies, lead by IBM. It cost around $500M do develop (plus/minus whom you ask). In today's terms, that is almost peanuts.

Blu-ray costs were very high. It included buying the laser patents, developing the laser prototype into a working product, building the manufacturing plant, co-developing the various discs, and other stuff. All summed up, $2-3Billion easily, almost all charged to Sony.