JUNE 23, 2008 • Since its 2006 launch, Sony reported to the SEC that the PlayStation 3 has cost the consumer electronics manufacturer $3.3 billion (¥316.3 billion). Worldwide sales to date of the console are approximately 13 million. In related news, the company has signed up 9.8 million PS3 and PSP subscribers to the PlayStation Network, and that it will launch a movie download service in the U.S. during the summer.

Impact:  It is going to be hard for Sony to make a profit on the PS3.  In its peak year, the PS2 earned Sony about $1 billion in operating income.  The PS3 is not supposed to do nearly as well.  Sony has talked about a 10-year lifecycle for the PS3.  Even in that time frame the system may be hard pressed to turn a profit.  On the other hand, the PS3 seems to have negated much of the lead the Xbox 360 had in online game services.  We still have doubts about whether PlayStation Home will ever see the light of day, but in terms of online functionality, it is hard to tell the difference between the two systems.