PlayStation 3-related Losses Hit $4.7 Billion

Unless you're Nintendo, the recession period hasn't been kind to your bottom line. Sony released its fiscal second quarter results, which show a reported a 58.8 billion yen (or $654 million) operating loss from its division responsible for video game hardware and software.

Those who have been tracking Sony's reports since the launch of the PS3 have noticed a trend of losses. Now, launching and supporting a new platform is an expensive endeavor. Typically, hardware is sold at a loss initially to build a user base so that the profits may be reaped from software sales.

Looking at the losses total since the PS3 launch, the branch of Sony has lost nearly $4.7 billion, according to VG247. While that is a lot of money, Microsoft went through a similar sort of thing with the original Xbox, losing $4.2 billion over the console's four-year lifespan.

According to Andriasang, Sony CFO Nobuyuki Oneda said of PlayStation 3 costs, "At present, the difference between sales and materials cost has been reduced to between 10 and 20%. Within the year, it could be in the single digits. We'll be able to reach profitability at some point in the next term."

Marcus Yam is a technology evangelist for Intel Corporation, the latest in a long line of tech-focused roles spanning a more than 20-year career in the industry. As Executive Editor, News on Tom's Guide and Tom's Hardware, Marcus was responsible for shaping the sites' news output, and he also spent a period as Editor of Outdoors & Sports at Digital Trends.