Sales were slow for both the PlayStation Portable and the PlayStation 2 this year, and "As a result, vidgame revenue was down 21% at $1.4 billion. Operating income swung from a $70 million profit to a $369 million loss." That's a pretty sizable chunk of change.
While the PS3 research and development costs aren't unexpected, when you combine the enormous outlay with the battery recall Sony has had to deal with, there is a much higher expectation for the PS3 to pull in some mighty big bucks and soon.
Serves 'em right for messing with Lik-sang. Boo-yah!