Sony is still losing money on its Playstation gaming console even if its newly released PS3 Slim has significantly lower manufacturing costs compared to the full size version.
Speaking to The Times at last week's Gamescom, Kaz Hirai, head honcho at Sony Computer Entertainment, acknowledged that they are still losing money on each console sold.
Several factors may explain this; Sony has to pay a Blu-ray license for PS3 that it is selling because it includes a BR player, the PS3 components may still be quite expensive because of the console's complexity and there's also the fact that it has significantly reduce the price of the PS3 recently.
He said that "If you're just talking about the hardware alone, the quick answer is yes" but he was quick to point out that Sony is profitable as a whole platform when one accounts the hardware, software and peripherals.
Sony is also hoping that its forthcoming peripheral, known as the Magic Wand, is going to bring in significant revenue. The motion control system, the equivalent of Nintendo's Nunchacku, may also be facing Microsoft's forthcoming Natal controller.
If it is of any consolation to Sony, the gaming console has unsurprisingly ranked as the top selling item in Amazon's US video game (and incidentally in its Blu-ray Disc player) section. It is first in UK as well.
Forbes reported in December last year that Nintendo made $6 profit for every Wii sold, which places it in the unique position of being the only mainstream console manufacturer to make a profit out of its consoles.
(The Tech Herald)