Sony has lost all of the PS2’s profits

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Gaming - Serious Business We all know that Sony has invested heavily in the development and early production of the PS3 but I was shocked to hear how much it has actually cost the company.

According to DFC Intelligence (a research firm) Sony has now piled more money into the PS3 than the PS2 brought in over it’s 5 year peak and the scary part is it is still rumoured to be losing money hand over fist.

You’re looking at losses of over $3 billion so far and until the software sales increase even more they will keep losing money.

Microosft hasn’t been immune to the cost of this generation especially with that $1 Billion right off over the unreliability of the console. However they have the money and they are working on a long term strategy here. Sony have a long term strategy but that strategy involves making as profit… and soon.

Nintendo on the other hand are making so much money it’s not even funny. The rumours are that they were making $40 per hardware unit at launch and that can only have increased so you do the maths.

There is a silver light for Sony though as DFC is predicting that the PS3 can easily last 10 years and will end up winning the software race. Nintendo looks untouchable on the hardware front though.

Source: 1UP

Last Updated: August 20, 2008

Gavin Mannion

I for one welcome our future robotic overlords

  • Banana hammock

    Yeah, the article i read said the same but it also mentioned the $4Billion MS lost on the original XboX + the $1Bil on the warranty.

    A lot of people will say that MS has the money to blow but investors and share holders don’t like a division to make that kind of loss and will not happily toss good money to a bad division. But they are getting better so the investment is sound.

    As for Sony, they won the format war and in the end that will bring in more money than their gaming division without a doubt. That was one of the main points of developing the PS3 and one of the major costs, so Sony are very happy at the moment.

  • ace

    this is only for hardware tho. the ps2 hardware profits have paid for the ps3 hardware – which kinda makes sense for me. consoles have never really made profit for a company (except wii – and ps3 after a couple of years). sony makes its money from software. just like microsoft

  • ace

    my bad ps2 not ps3

  • Apparently those profit numbers include software.

  • scotty777

    that can’t be right, I’m sure that the ps2 was ranking in more money with that, I mean, they sold 100 million units, and the software on those this are insane…

    BUT THIS CONSOLE RACE IS STILL EARLY.

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