Developing game consoles is a risky business. But it is a risk that Sony is willing to take when it came up with the PlayStation. If you think that Sony profits a lot from the PS3 it released for the market you are quite wrong. From the time the PS3 was released to the market, Sony has been experiencing losses. This year, the company’s total loss is already around $3.3 billion. In 2007 its loss amounts to $2.16 and for this year, the deficit is $1.16 billion. These continued losses are attributed to the fact that Sony maintains an expensive production, but sells consoles at much lowered price.

You’ll remember that at the launch PS3 cost $599, but in the past months Sony made it much cheaper to attract more buyers. So, with this kind of strategy I think it’s going to be doubly hard for the company to recoup. Sony admitted as much, especially if the PS3 fails to attract more buyers.

But Sony is not alone in this matter. Microsoft also suffered losses when it released the first edition of the Xbox. Xbox fans, don’t go booing Sony!