well that 3 years is including potential price cuts.

i bet if they had no price cuts they would be making profit in about a year.

so in 12 to 18 months there will likely be a $25-50 price cut, then another 12-18 months another $25-$50 price cut. and by that time the cost of the product will be around the cost of the parts and manufacturing

Is this 3 years that they turn a profit about the year itself or that they turned all the losses from the Vita within 3 years into a profit... if it's the first it's gonna take a long time they actually make anything on it.. like 5-6 years.

It means effectively their strategy from a business sense is weaker than Nintendo, weaker than Apple and weaker than Microsoft with Windows 8 tablets and phones. When you consider that all three have effective strategies which will yield them high unit sales as well as high profits through various means and the fact that Sony is yet again loss leading without any probable means for recouping the losses (Live) it means you have to wonder why they even bother.

Because Sony loves you so much that they don't mind losing money to please you.

Yeah well I guess they're planning on sitting down in another 5 years time and wondering 'what went wrong'.

Don't forget they are in much better position than on PS3 royalties wise.

One $40 game sold through PSN is going to bring more royalties and cash for developer than $60 game sold through retail.

surely they meant advertising, R and D and the manufacturing itself?

will Sony ever put a console out which is profiting in the beginning?

i wouldn't worry about it,...they don't.

I can see them taking a loss early. They have to compete with the $700 phones and tablets for components such as the processor. Even if they make a lot of the components themselves, there is the opportunity cost of not selling the parts at a higher price for other higher priced products.