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PS3 loses Sony $3.3bn

PS3 has lost Sony Corp. $3.3 billion since its launch in 2006, according to the company’s annual filing with the Securities and Exchange Commission.

According to Forbes, "strategic pricing" has left Sony selling the console at a loss.

"Even if the platform is ultimately successful, it may take longer than expected to recoup the investment, resulting in a negative impact on Sony’s profitability," the report said.

"The console is still too expensive for the masses," said Wedbush Morgan analyst Michael Pachter. "A recession isn't going to help HDTV or Blu-ray sales."

However, the 20-F filing did show that losses caused by PS3 has narrowed after its first year. The PS3 was directly responsible for losses of $2.15 billion for FY 2007 (ended March 31st, 2007), when the console had only been on the global market for five months.

However, the console lost a slimmed down $1.5 billion in the following FY.

Sony said the year-on-year cost reduction was due to "successful PS3 hardware cost reductions."

Sony Corp. CEO Howard Stringer said last week that restoring profitability to the firm’s games businesses was a ‘top priority’.

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Tags: Sony , PlayStation , ps3 , howard stringer

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