Creating, manufacturing and launching a console is expensive. That's a lesson we learned during our unsuccessful attempt to revolutionize the industry with the JoyStack, the world's first edible console. Of course, we only made two, the graphics were terrible and people complained that it was just a copy of Syphon Filter 2 wedged in-between two pancakes, but it did give us perspective on Sony's fiscal 2008 report. Having sold the system at price lower than the manufacturing cost, the PlayStation 3 was a $2.16 billion endeavor in 2007, with another $1.16 billion being lost in 2008.
The $3.32 billion investment, which includes the monolithic system's complete development and introduction, "may not be fully recovered," according to Sony. The manufacturer warned that should the PlayStation 3 fail to reach "favorable market penetration", it would have a "significant negative impact" on the company's profitability.
While the cost may seem astronomically high, especially compared to the JoyStack, we've seen rival manufacturers taking their sweet time to reach profitability (a top priority for Sony). The race is a long one -- and we've seen each competitor's fortunes improve over the last year.