A report from prestigious British economic publication Financial Times shows how Sony's hardware strategy for the PlayStation 3 is anything but straightforward.
The Financial Times report posits that a weak Yen value may "rescue Sony from an estimated four years of losses on its complex machine" as it sells the high-priced game systems in Europe in early 2007.
The article also claims that Europe is expected to be a "strong market" for the PlayStation 3, citing past successes with the PS2.
According to an analyst quoted in the article, Sony will need to sell roughly 30 games for every PS3 console sold in order to break even on hardware costs, assuming that the company receives a $10 royalty on every PS3 game sold. By the same formula, Sony only had to sell an estimated eight games for every PS2 in order to break even on hardware costs.