They were making money on the 360 but I think they are recording losses again.

haha vlad lol

I think that should have been their business plan to begin with. They would have revolutionized the way business is made! True pioneers in business!

The one big difference with the xbox is that its hardware is more common and cost a lot less to develop. The manufacturing of their hardware was probably considerably cheaper because there was already a lot of knowledge and production of it prior to the 360. Ninny and Sony are very proprietary. Ninny is fine because of well how well their consoles sell which gives them a lot of leverage in manufacturing. Sony is pretty much screwed in that department. They overspent on making a new processor, spent a ton more to incorporate blue ray during its early stages, and is not selling all that great to give them huge manufacturing discounts. The irony with Sony is that they probably would have won the hd war even without the PS3 blue ray player. They had a lot more hollywood support and exclusive deals than HD which put them over the top. This means that they could have bundled the PS3 with something much cheaper and they might be in 2nd place today.

Whether they lose money on each console or not they need to sell consoles in order to make money.  The money is in licensing.  Sony gets money for each game that is manufactured regardless if it sells or not.  If the demand for Xbox games is twice that of PS3 games then Sony is losing a lot of potential revenue.  Also the more consoles they manufacture the cheaper they become to produce.  Its the economy of scale.

In a way they are screwed because they can't lower the price but they will end up losing market share.

Use the official PS3 doom and gloom thread.

http://www.vgchartz.com/forum/thread.php?id=51330

Thread locked.