With the PS3 featuring expensive technologies like the cell processor and Blu-ray, Sony is expected to lose money on each console sold. How much exactly? According to an article at BusinessWeek, the company's game devision is expected to lose almost $872 million this fiscal year alone.
The results for Sony's game division during the current fiscal year will not be good however, as the company ramps up investments for the PlayStation 3, which launches worldwide this November. Sony expects the segment to hemorrhage 100 billion yen ($871.6 million) in operating losses during the business year as it prepares the PS3 for launch.
That said, in the future Sony believes it can cut down on PS3 related costs quite a bit. "We believe that we can lower costs dramatically (on the PS3) through chip shrinkage and by cutting the number of parts but there is no way to avoid high costs in the first year," Sony Senior Vice President Takao Yuhara told a Tokyo news conference, according to Reuters.
Knowing Sony, the company won't have any problem making this money back, especially if the PS3 is as popular as their previous consoles. If you'd like to read more, the entire article can be found here.