Sony to Lose About $100 for Each PlayStation 3 Sold -- Merill Lynch

Added 06/29/2005 by Kisan Parikh

According to a new report by Merrill Lynch, Sony may be losing up to $1.18 billion on the PlayStation 3 in its first year after launch. The console will potentially sell with a  $100 loss for Sony with each unit sold, because the report states that the console will sell for $399 and cost the company $491 to make.

The Xbox 360 will be a tough foe for Sony, because Microsoft has the option to lower the console's price ($299 from what we have heard) to put even more pressure on Sony. Microsoft seems to have the upper hand at this point due to a number of factors. One of these factors is the possible option of HD DVD and another is, of course, Halo 3.