Unless You’re Nintendo, Game Consoles Are Expensive

At the Games Convention Developers Dave Perry from Earthworm Jim developer Shiny Entertainment stated that Sony lost more money selling PS3 at a loss than it made during the five years of PlayStation 2 peak sales. That figure is estimated as being in the US$3 billion ballpark. The data that Perry cited came from DFC Intelligence. Not taking a stance on the "console war", Perry was using this data to point out how much of an investment Sony was putting in the PS3.

Microsoft also has lost a lot of money on the Xbox 360 — that Red Ring of Death clusterfuck cost the company a billion dollars. Microsoft lost $4 billion on the original Xbox, and Sony, of course, was in the red with the PS2 for the first few years it launched. Seems like only Nintendo has this making-money-on-game-consoles schtick down.

Note: That is pretty much the story. I made sure I didn’t hide one or the other, because that’s biased. There’s a link within the link if anyone wants to post that: http://www.1up.com/do/newsStory?cId=3169439