Originally Posted by |MaguS|
Sony took a huge hit when the PS2 launched, a year later they were making tons of money thanks to software sales, its always like this. The money is really in the software, not hardware (well accessories are a good rev aswell).
On top of software sales, the PS2 made tons of money because it was the fastest selling console in history, and Sony was able to, in very short order, make back the money it invested for R&D and tooling.
With the PS3 selling far below the clip of the PS2 and the attach rate being so low, it's going to be much longer before it becomes profitable.