It's a well-known fact that Sony has been losing a lot of money on the PS3 this generation. Although it's the most expensive console on the market, it's also the most expensive to produce, thanks to the combination of bleeding-edge technologies, Blu-ray and the Cell processor. When the system launched in fiscal 2007, the Japanese electronics giant had to swallow a whopping cost of $2.16 billion. Fiscal 2008, however, has been much kinder to the company, with PS3 hardware costs eating up $1.16 billion, thanks to the lowered cost of manufacturing. Combined, PS3 has cost the company $3.32 billion dollars ... so far.
The astronomical figure Sony has invested into the PS3 shows its confidence in its success. However, the company did note that unless it reaches "favorable market penetration," the PS3 would have a "significant negative impact" on the company's profitability.
Software is where the company will the company will recoup costs, and with an excellent holiday lineup in store for PS3 gamers, we're sure that Sony has little to worry about for the rest of this generation. But remember, while other companies are eager to make profit off of you on day one, Sony put their necks on the line to give you a great deal on a monstrously powerful system.