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29 Aug 08   
Stringer Jokes That Sony Won’t Recover PS3 Investment
[H]ardOCP:

During an interview with Welt Online, Sony’s CEO commented on the Wii’s “superior” business model and went on to say (as he laughed) that that the company will never recover the $3 billion spent on making the PS3 “in his lifetime.” The good news is that Sony is making money on its games, so that is a good thing.



You have spent three billion dollars on the Playstation 3, disregarding research and development. Can you ever get your money back?



Stringer_ Not for as long as I live (laughs). It will certainly take some time. The traditional business model for the Playstation envisaged us making a loss with the hardware in the early years until the production costs had decreased to a point that enabled us to break even. In the meantime, we earn money with the games. We are currently at the stage in which we need to get a grip on the production costs. That takes time. We are already making more money with the games than we are losing with the hardware.



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