http://www.videobusiness.com/article/CA6508789.html?industryid=47215

 

"The steps Sony is taking to bolster its game platform, moreover, are likely to make the cash drain worse in the short term. At $399 including a Blu-ray drive, Sony Computer Entertainment is taking an even bigger haircut on its entry-level console than it was before as it tries to buy market share. The company recently pushed back its estimate for when PS3 will reach breakeven until the fiscal year that ends in March 2009, and even that could be optimistic."

As long they profit something from the PS3 this generation not included the "Blu-ray" thing.

Thats also assuming the pricing stays the same. Im sure Microsoft and Nintendo by then are gonna put incredible pressure on Sony to slash prices by then just to keep up. They may never profit.

Meanwhile they will benefit from increased Blu-Ray and HDTV sales for their other devisions due to the PS3.

There's effectively zero chance Sony will turn a profit this generation. There choices are "not lose too much money" and "welcome to Xbox 1 losses."

Not great choices, but they'll have to decide which they prefer.  

I thought Sony only had around 10% of the HDTV market?

Not if they keep giving away 5-10 free blue ray movies for every purchase.

March 2009?

I doubt it to be honest, the PS3 has lost ridiculous amounts up until now and I expect it to keep losing money per unit well into next year - I'd be suprised if they posted a profit from their games division before quarter 3 next year.
I expect that if they do finally break even on the PS3 it will not be before march 2010.

Mind you the PS2 can't have broken even until quite late in its life either?

by being profitable i'm assuming they mean stop losing more money, otherwise this is unbelievable by any stretch of the imagination. There's no way PS3 will ever make back all the money it lost.

Is Sony saying they will continue to lose more money for another year and a half? That is ridiculous, they are already in the red something like 2.5-3 billion dollars.

Rath said: March 2009? I doubt it to be honest, the PS3 has lost ridiculous amounts up until now and I expect it to keep losing money per unit well into next year - I'd be suprised if they posted a profit from their games division before quarter 3 next year. I expect that if they do finally break even on the PS3 it will not be before march 2010. Mind you the PS2 can't have broken even until quite late in its life either?

the PS2 had 1 unprofitable quarter, can't remember exactly but it was either 200 or 400 million in the red, then the next quarter it was already making money.  The PS1 was offsetting some of it, but the PS2 and PSP are doing the same thing for the PS3 now.