Sony Losing Money on PS3 Slim

By Brian Ashcraft (Edit, to draft, Slurp)

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The hardware business is not a profitable business. Don't believe us, just ask Sony.

When the original PS3 launched, Sony bled money on each PS3 sold. But the manufacturing process improved, and Sony was able to close the gap.

Just as that started to happen, the company is now launching a new hardware iteration. New hardware means new costs. When The Times asked Sony exec Kaz Hirai if Sony was losing money on the PS3 Slim, the exec said this:

If you're just talking about the hardware alone, the quick answer is yes. That makes good headlines, but I don't actually know that that's the true nature of the business that we're all in, whether it's PlayStation, Xbox or the Wii. I think the better indicator is to look at the business as a whole platform, to ask: are you profitable in terms of the hardware, software and peripherals. And the answer to that question is yes on a gross profit level since the last fiscal year.

So the small picture is that the PS3 Slim is not profitable, but the big picture is that PS hardware, games and peripherals are.

Oh, and thanks for the headline, Kaz!

Sony boss reveals plans for PlayStation [Times Online]

Yeah i knew this would happen.

Well really now.  Who honestly believed that sony was actually making money one the PS3 after that 100 dollar price cut.

I had someone telling me in a thread that Kaz stated the PS3 was making a profit, when they are not.

No brackets !?

The thread title says "Sony losing money on PS3 Slim," not "Sony losing money on PS division."

Of course the PS2 and PSPs are making money. They are old as dirt. However, their baby, the PS3, is bleeding like a gunshot victim in ER.

I am curious what shareholders are thinking about this *experiment* and the lack of money this product is making nearly 3 years after launch. And this is coming from a 2-generation video game leader. You'd think Sony would know a thing or two about winning. Apparently not ...

please dont get mad if this is a stupid question but does sony make money or get its money back from its HDTV's and other electronics?

I know I'm slacking.. ( sorry )

Lol, I know exactly who your talking about.  I don't take anything he says seriously...

Link to the post or it didn't happen.