Whoa there Viper, were not talking about how much money has been lost with PS hardware, but how much the whole PS3 has lost.

but either way, the PS2 and PSP will have made a lot more than $700 million over the years counted.... The PSP as I estimate is probably not much past breaking even overall, but that is including a couple of years prior to PS3 expenses, so throughout the PS3 life the PSP has probably made $500 million on it's own.
PS2 will have probably made 3 times that amount, so yes... after this recent Fiscal report I can safely say the PS3 has lost in excess of $6 billion, it could easily be bordering on $7 billion.

I am not certain how profitable PS3 software alone is in that equation, it would be a lot harder to tell because then the issue of markeing expenses does come into effect, because advertising PS3 games is also helping PS3 hardware, so you can't split it easily even if you knew how much was lost on PS3 hardware. As well as this the R+D costs on producing the hardware cannot exactly be split into HW and SW costs

I would guess (randomly) that PS3 software business is at least profitable for Sony though... at least if you just assume all the billions of R+D should all be counted to Hardware expenses.

10 trillion yen

Not quite yet, but it is getting close

Wait... I am getting the exchange rate wrong.... it's coming up on 1 Trillion Yen, not 10.

pretty big wake up call to all the people saying ps3 hardware is breaking even. I mean the exchange rate even improved by about 10% to the dollar over the last quarter but it still loses that much money. You have ps2 and PSP making money as well as things like ps3 accessories and ps3 software and you still get a 260 million dollar loss.

LOL Thank you. This is the reason I wish people would stop comparing Sony and Microsoft financially.

Also, it should be addressed that Sony picked up a lot of things from Nintendo when Sony first entered the console market and Sony is a hardware company first and foremost.

Microsoft had to blow lots of cash when entering the market. It did not have the same advantages as Sony, but Microsoft does have money out the @$$. Microsoft shot itself in the foot with all the reliability issues with the 360, but has been making strong efforts to make the 360 a viable option in the console market at a competitive price.