Really, LBP, a game of a completely different Genre altogether from any of the afore mentioned titles will own them. Apples and Oranges much? Even then, comparing games that aren't even out yet, good call.

If they are losing $260 or $200 (3b/15m) per console no game or games is going to turn that into a profit.

That's my opinion. Tell me how my opinion for a game could be wrong?

Edit: Nice try though.

Only market leaders get 10 year plans.

PS3 is getting dominated by the Wii.

This means that the Wii gets the 10 year plan and gets to outsell the PS4 and MS3 for a while, just like the PS2 did.

You don't compare new Sony console to old Sony console. You compare new market leader to old market leader.

Do we know how much profit Sony gets averagely pr. game sold?

Could be fun to know, just how big the attachratio had to be for Sony to break even xD

Perry didn't use this point to take any particular stance on this console race -- though he did state that DFC Intelligence puts the Wii as the victor this generation, with the PS3 coming in first in terms of overall software sales -- but he did want to point out the extreme investment Sony is making in its hardware this generation. He (and DFC) predict Sony will extend this generation even longer than the PS2's because of this (making Sony's claims of 10-year life cycle a real possibility).

The sad part if is that neither of these are true. Sony will be last in software (360 has more titles and the 360 version usually does better) and the poor sales will prevent a life span higher then 5 years or so. Truth is, Sony might not turn a profit. They are really in a bad possition, with Nintendo changing the market and them are Microsoft fail to find a nitch, the future might not be so bright.

$260 is hardware loss, $200 is total loss for the division divided by the number of consoles sold.  So that would be included already.

Sony probably profits an average of 5-10 per disc sold that would be an attach rate of 20 games per console on the high end of that profit per game, 40 on the low end.  (It's really hard to figure avg/disc because most of the cost is in development. But 35 is the number that usually gets tossed around for revenue.)

Where Sony has a chance to profit is in the long term affects of PS3, in ten years 50%+ discs and disc players sold will be bluray.  Sony sacrificed one division to win a format war.  They aren't stupid, they knew that PS3 couldn't possibly have been profitable losing 200+ per piece of hardware.  They were actually counting on losing more, because they thought they would sell more PS3's.  Time will tell if it was a Pyrrhic victory.

@Rainbird: I think it was somewhere around 10-15$ per 3rd party game and i'd guess something around 40 per 1st party. Also notice that the profit is different in different regions due to currency exhange rates and different pricing.

Good points

the higher margin on PSN downloads might shrink the number of games needed to turn a profit too

Also, Home might be able to attract some money through sales of advertising space and sales of HD/music downloads. If it's ever released, of course! (j/k)