So that's the reason there were no serious price cuts before Christmas

For Sony, the PlayStation 3 has always been a loss-maker – its parts costing more than the price consumers pay for it on the shop shelf.

Two years ago, when it was first released, the PS3 cost around $800 (£540) to make and retailed at just $600 (£400).

Two years on and the margins have significantly shrunk but, according to Business Week, the console is still losing money for Sony – around $50 (£35) per machine.

http://www.techradar.com/news/gaming/sony-still-losing-35-on-every-ps3-sold-497010