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MikeB said:
No surprises there for me, I have followed the PS3's development for years. An amazing amount of R&D went into the product. And not by Sony alone, there have been many other companies involved with regard to the development of cutting edge components and other technology integrated into the PS3.

 

I don't think R&D is the biggest reason for the loss, although it must be a significant one. No, the biggest part of the story is most likely the massive price cuts on a console which was already selling below cost right from the start.

For example, in Europe the cost of a PS3 dropped by 200 €... Even eliminating taxes, that's a $260 added loss (minus whatever money is saved on the PAL 40 GB vs 60 GB model).

 



My Mario Kart Wii friend code: 2707-1866-0957