http://www.bloomberg.com/apps/news?pid=10000101&sid=aeGRSMEuIbCU&refer=japan Which translates into almost $875 million. It's good they have other divisions to carry the loss. In a way, Sony's like the Walmart of the electronics industry.
Yeah, its too bad the rest of Sony isnt doing that well, otherwise they might be able to cover those losses. But rember, PS3 is a trojan horse for Blu Ray
The game division has been what has been carrying Sony for the past few years. The PS3 *HAS* to kick ass for them or they will have to sell something. Probably their movie division, which only covered it's losses the last couple years from the billion dollar Spider-man franchise. Google Sony's business problems. Keep in mind that Bloomberg & Merrill Lynch always downplay Sony's future. So I would take their pessimism in that light.
Developing and producing new hardware hits every companies finances hard. The money will be, they hope, clawed back over the life cycle of the PS3 and PSP.
Also, as most people know, Nintendo scrimp and save because they don't *have* other divisions to cover the others losses. Sony and Microsoft have a wide variety of other interests that (can) make up for losses in the other. As an example, Sony Computer Entertainment has been the only part of Sony to consistently turn a profit after, I think it was probably something like year 1, of PlayStation hitting shelves. So, there you go.
Yea but they're gonna be selling the PS3 for a much bigger loss than they did the PS1 or 2. Plus, if the PS3 doesn't do well, then the blue ray format might not be adopted by enough people for them to turn a profit on. I think they are taking a pretty big bet on themselves with the PS3