Some of you are fairly dense. Most systems these days never make a profit from the actual console. They make majority of it from royalties on games. It doesnt matter that they spent up all the money made from console sales of the PS2. They still have not spent up the money from the mountains of money made from royalty game sales.

The PS2 spent majority of the money made on the PS1 as well if you didnt know. Why should the PS3 be any different? All this is is marketing spin to have people's trust of Sony waver.j
Sony will make their money back in a few ways...
-from game royalties on their system
-soon the system will be able to break even, or at least make a small profit
-Now that blue ray is nxt in line to take the format throne, it will be bringing them in mounds of cash(and it is not owned by like 10 companies, its about three. Sony, Phillips, Pioneer, these are the creators)I think you are confusing it's supporters for the founders. There is a BDA that all support BDA but it is a creation of the companies I named before meaning they get much larger cuts.
-Home advertisements and saleable goods within the product
etc

Sony has nothing to worry about in the long run, this is why they sold it at a loss in the first place

The 'Losses' of the PS3 start long before it was released being that Sony spent billions of dollars in research and development in order to produce the PS3 so it is unlikely that Sony will ever recover the money that they have 'Lost' on the PS3 so far ...

The thing which will (truely) make this look particularly bad for Sony is that they will have to release a follow up console for the PSP in the next couple of years, and then a follow up for the PS3 soon after that, and since the PS3 will never be as profitable as the PS2 was it will be difficult to hide the expenses associated with launching consoles.

Didn't know that you could spin the truth.

Well then.

Yeah, I think we will know when their new consoles are coming lol.

Do you really think the PSP will not be replaced in Norh America and Europe within a couple of years with how software is selling? Do you really believe the PS3 will not be replaced by the end of 2012? The loss leader business strategy requires massive expenses 12 to 18 months before a console launches and 12 to 18 months after a console launches, do you really think a console which will (likely) have sold to less than half of the PS2 will be able to handle the expenses as well as the PS2 did?

Can they really? In the past two years alone, Microsoft's "war chest" has been halved, having lost over $30 billion. They face increasing competition on all fronts, and aside from their OS division none of their ancillaries are really striking pay dirt: search, gaming, Zune, etc. have all been losing rather than gaining money as a whole. Even Internet Explorer is being chipped away, albeit gradually. The simple truth of the matter is that the 90's are over: Microsoft is no longer made of money, and other companies are cheerfully assaulting it on all sides. This is not to say that Micrsoft am d00med or any such nonsense, but you can bet your rear end that they'll be more cautious about how they spend their money from now on.

And on a related note, I believe you're highly overestimating the degree to which Microsoft is devoted to the X-Box. Microsoft could conceivably throw enough resources behind it to guarantee a victory in the console wars. Likewise, the United States could throw enough resources into North Korea to overthrow that regime and unify the country under the South's leadership. But in both cases, the price certainly doesn't appear to be worth it to the folks who make the decisions.

As if Sony still has the money from the PS1 ^^ They made money, but money you can not calculate with these days. Maybe they lost it with the MiniDisc, their walkman, the clié or other products that flopped hard.

If you calculate like this, please consider the losses made with betamax in the bluray-numbers.

Heck, even if Sony gets close or does break even with the PS3 using the PS3 only, that alone would be quite a feat. It really depends on how strong demand for BluRay gets, being that Sony championed the format, they get the largest chunk of the profits.

I don't care.

Perrys should keep his opinion to himself. Who does he think he is? Pah