Sony’s latest earning report revealed some interesting facts – Sony Playstation 3 consoles still lose the firm money on every sale and the PSP Go is not rushing off the shelves.

The Wall Street Journal noted: “Sony loses about six cents for every dollar of Playstation 3 hardware sales.” It had been suggested that Sony had started to make a profit on Sony Playstation 3 consoles thanks to lower costs but it seems that was just wishful thinking.

Sony is now attempting to reduce Sony Playstation 3 production costs by 15% by March 2011 in the hope that it will stop losing cash. On the plus side, Playstation 3 sales were up 44% year-on-year.

It was bad news for Sony PSP Go sales too with Sony cutting their sales estimates for the portable gaming machine by a third. Sony did make money but primarily because it seriously cut costs making $3bn in savings and ditching a fifth of its manufacturing plants.

Out now | from £230 | Sony Playstation (via Wall Street Journal)

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  • Mark

    Of course everyone knows, nobody makes money from hardware sales, it’s all made in software sales and licensing. Microsoft make little money on XBox360 core, and lose money on Elite, but I don’t see silly fanboy baiting threads like this about that.

    Grow up, and stop reporting nonsense fanboy fuel.

    • http://www.electricpig.co.uk Ben Sillis

      What’s interesting here is how long this approach will work for now that the line between PCs and consoles is blurring. You see all sorts of organizations snapping up PS3s to do number crunching for less than the hardware is worth. Will any console company (Nintendo aside) adopt this approach for the next generation I wonder?

  • http://www.electricpig.co.uk Joe Minihane

    Mark, when Microsoft results come out, we report them in just the same way. These are financial facts, presented in a normal manner. As we’ve said before, we’re not fanboys: note the well reviewed PS3 Slim and reports on Arc as well. It’d be remiss not to report this: we’re a tech news site after all.

  • http://www.rosslawley.co.uk Ross

    Just goes to show what excellent value for money a PS3 is ;)

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