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thismeintiel said:
Qwark said:

https://www.extremetech.com/gaming/251038-theres-no-profit-margin-microsoft-xbox-one-x

 

This gives a good insight in the total net losses of Playstation from 2000 to 2011. They actually ended on a net loss. 

 

 

As you can see shot really hit the fan when the PS3 launched. It took Sony more than half a decade to turn the massive losses the PS brand suffered back to a small profit. Yet at the end of 2011 it was not even near 2004 levels. So the PS3 made a nett loss big enough to vaporise the profit of the most succesfull console ever made.

That's not exactly accurate, though, is it? That also includes other products that were losing money that Sony coupled with the gaming division, even when it started to become profitable. Granted, I can believe it probably burnt through all the profits the PS1 made, but I highly doubt it was both. 

The timeline is right when the Sony rootkit erupted. The was massive down trend prior to Jan 2006 when the PS3 launched.  You can see that the rootkit really caused far more of a problem for Sony and it's company name than anything from the PS3 launch.  The charge shows the downfall well before the PS3. The PS3 didn't launch in US until Nov 2006.  Granted there was some sunk R&D and inventory costs prior to launch, but that is nothing compared to the damage to the Sony name at that time from them intentionally shipping rootkit to customers.