No.

@Kynes thanks for reminding me that but my studies are all about Business so I'm not clueless about that. At least I think... When Sony says PS3 costs XXX$ to produce it's an average price that counts packaging, electricity, shipments etc things in it, so when they say they don't lose money, they really don't lose money...

The only thing left bleeding the company is the PSN and maybe the video games division, which if I remember is often in red. (I dunno, their games sell well but... something is eating the money there).

That's what I figured.

Presumably, for the same reason they mentioned in November that they'd seen a month over month increase from October.

Ps3 just had quality games and it still beat 360 last year. A ps3 price cut would be huge, although I doubt big enough to help the ps3 pass 20 millon in a year. Of course, this year we have to see how kinect pans out in stimulating console sales.

Then explain to me how they can, with all the first party games they sell, all the reneuve from third party sales, breaking even (if they really are doing so, something that I don't believe) with the PS3, earning lots of money with PS2 and PSP hardware... still be in red if you aggregate the last three quarters (last quarter we have data they were ~55 million dollars in black, taking into consideration that Vaio had the back to school period, where they sell tons of notebooks, it seems that PS division still bleed money), and almost 5 billion dollars lost since FY 2007.

The most plausible explanation is that they are talking about breaking even only considering the hardware, not the operation cost.

BS PS3 don't sell software.

Anyway the quarter fiscal release is likely to show a lot of meltdonws here.

R&D, both for PSP2 and for the expansion of the Sony Online Network (ie, PSN making its way to every piece of Sony hardware), for which they have an 11 year roadmap over which it'll be phased into existance.

The PS3 is part of their larger division of networked devices, and this network is an enormous undertaking that is likely burning through the most revenue at this point in time.

Damn, I'm tired of explaining things that should have been understood from the first read. PSN is in red and by a huge amount, at least it was even deeper in red before the PSN Plus, now I guess it's starting to slow down.

They also lose money on software, because they spend too much money on things I partly don't understand (new engines? I know that Sony has a permanent team of 8/10 people who develop features and engines, the same team that did the MLAA. New projects? Probably, Sony has several exclusives being in development so it might be logical for them to spend more than they earn, software expansion ALOT OF R&D, we see several patent every year). And here I'm talking about First Party software.

And to make it clear, what I said was not an assumption but an affirmation... It's always this way and I don't think Sony is thinking any different than 99.9999999% of the companies out there. When a company need to know the average production cost of their product, then they take EVERYTHING into account. It appears completely logical for me because I'm seeing case like these everyday, but I'm tired to explain everything in detail. Just keep in mind that Sony could care less if it only included hardware cost only.

Edit: Ty makingmusic, what you say is complementary to what I try to explain.

If this is true, then they have a big management problem. If they want to fight iTunes, Spotify and other free/paid streaming services, google/apple/netflix/whatever tv service... they are going to be eons in red.

I would actually assume SCE makes a profit overall on their game development investments.

Though any third party exlusivity deals they may make (DLC, etc.) would obviously not show any immediately discernable gains.