Good points. People should also realise why Sony is not making any profit (yet) in their Playstation division, as the software isn't really bringing in the cash ("Africa" is/was another horrible money dump) to ofset hardware costs.

Uncharted was ground up new engine the game cost around 20million including advertising i believe

thats a god awful excuse and helps my arguement. First of all companies arent retarded. they dont pull budgets from thin air. there is a formula for it. one part of the formula is looking at sales trends. hmmm...... lets look at those for a second.... GTA3, GTAVC, GTASA ... around 15million for ps2 version all the way to 18million ... Kllzone... around 2 million.... which one will have a bigger budget... secondly GTA was multiplatform. so times the already big budget by 2. or... divide 100million by two and you get 50million... probably more than KZ2s budget. Third being as T2 is a bigger studio im fairl certain R* started working on GTA4 while finishing GTASA which would make GTA4 have longer dev time... so in conclusion KZ most likely had less money thrown at it than the ps3 version of GTA4

Infamy - Im pretty sure GG is still paying rent... but KZ2 is done... eh guess KZ2's budget is ongoing... am i right?

3.5 years is max kz2 could be in development. before that GG had two full fleged ps2 games in development and a psp game during the first 6 months of my kz2's 3.5 figure. not only that but GG increased their employee count to 120 through KZ2 development.... 2 ps2 games 1 psp game and 1 ps3 game is a huge workload there... ontop of that the cell wasnt revealed till late 04 and dev kits werent made available till mid 05. ps3 dev kits were supply constrained so lots of devs were waiting for theirs. Sony probably gave the first party and insomniac the dev kits first. GG of which wasn't first party till Dec 05.

Your confusing cost to run a buisness with cost to make a game. ive ran my own business and if anything rent lowers the budget. Sony has that down as a fixed cost and is well aware about it.

Lets be honost. We are talking about Sony here. If any company could be considered financially retarded it would be the one who has spent more money on their current last place console than they made in their prior #1's. Not to bash the fans. But I would suggest that when it comes to money and finances Sony has not clue what they are doing. Their financials hit this point home.

As Infamy said 50-60 million is certainly possible. Do we know for sure? No. But it makes  sence that it would be around there. I think 2 things at this point are pretty likely. 1- that KZ2 will make a small profit at some point in the future and 2- that Sony significantly overestimated the demand for this shooter and expected better sales. As Infamy said, no company makes a game to break even. They do it to make (significant) money or expand the platform. Unlike LBP KZ2 looks to do neither.

In the end  I look back at my prediction of 1.2 million first week and wonder what happened. I have never seen a game so hyped, that I was so sure would sell well that did so mediocre.

Just how low are you trying to establish your credibility here?

^ your completly ignoring the fact that that wasn't Sonys intentions.

1) Sony drop price a lot faster than they would have liked. They fully intended to of sold well enough at 600 dollars to of stuck with it.

2) Sony couldn't have controlled the weak economy.

If youd like you can argue their bad business practice but when they came with this stragety at the time it was a sound financial investment. further more console losses do not affect game budgets so this is irrelevant

The PS3 came out in 2006, KZ was being worked on since 2005. The recession started last fall. So no, the reason the SCE has been struggling cannot simply be explained away on the recession. Plenty of games have been selling well in the last few months. Heck consoles sales have been great thus far.

^ the word recession was started to be used last fall. the economy has been in a downward spiral since before then. and even if it wasnt that economy still effects Sony. Im sure in 2007 Sony didnt expect to get slapped twice by dropping the price once. (once for the initial drop and second for shitty exchange rates)

The original selling price was a bad business move no matter the state of the economy. I just really think that goes without saying into the realm of common sence. We can do the dance, but the end result is the same. An error in judgement that has been  catastrophic to the continued legacy of the brand.

Don't get me wrong, the PS3 will do fine when the dust settles. But to pretend like this company hasn't made some massive blunders is absurd.