October 30, 2007

PS3 costs Sony $1 Billion

The Japanese electronics giant Sony looks as if they are heading to a massive $1 billion loss for the financial year. This is mainly due to the PS3 which has cost a lot more to develop than first anticipated, they say that this is because of the cost of the chips and other components, but the company feel that with time these will get smaller in size and in cost too.

Initially the company were expecting to report a loss a of around half that amount, as for other electronics like TV’s, Cameras and other products these are actually selling well and lucky for the company as a whole that they are, other wise they would be in a serious situation.

It looks as if the development of the PS3 has definitely under estimated the cost and market for the games consul, but in following years this will adjust and the company will reap the rewards.

Source [Game Daily]