The PS3 was an expensive console to make, indeed, but instead of selling it at a profit for a completely absurd amount, Sony had to sell it at a moderately absurd amount and brace for the inevitable losses. Turns out these amounted to about three billion dollars.

The company's 2008 fiscal report said "the large-scale investment required during the development and introductory period of a new gaming platform may not be fully recovered."

In order to stay competitive, said Sony, it had to invest large amounts of money in research and development to introduce the PlayStation 3 into the market, and these sorts of expenditures don't always get recouped, especially if a platform "fail[s] to achieve such favorable market penetration... resulting in a significant negative impact on Sony's profitability."

Even if it can recoup its investment, Sony said, it's still possible to have lost large amounts of money on the platform's introductory period, and even a successful PS3 might take a while to replace what it cost to produce. These possible outcomes are currently a risk for the company, Sony said.

chautemoc via kotaku.com »