Wednesday, June 25, 2008

Playstation 3 losing $$$

PlayStation 3 console cost so much to develop and make that the company will find it difficult to recoup its losses.

After retailers and distributors have taken their cut, Sony is likely to make anything from 40 to 75 per cent margin on these sales.

At this rate, the PS3 may never be anywhere near as profitable as earlier PlayStation models.

However, with every console sold Sony is also seeding homes with Blu-ray players for which it can sell Blu-ray DVD movie titles at much higher margins.

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