In an interview with Die Welt, Sony CEO Howard Stringer tells the German newspaper he believes Sony captured the casual audience before Nintendo did. "We held the same target group with the Singstar karaoke game. But perhaps we neglected to pursue that avenue." He admits that PlayStation titles target hardcore gamers. "Playstation games are rather designed for those who play a lot. Although it's a different strategy, it pays off. We currently have a production bottleneck with the PlayStation 3 ... Consumers are purchasing our PlayStation 3 video game consoles faster than we can produce them." Stringer also doesn't see Nintendo as a rival. "The Wii is not succeeding at our expense – it is not hurting us. We decided years ago to build a game console that offers much greater functionality."

Stringer confesses that the $3,000,000,000 spent on the PS3, discounting R&D, will take a long while to recuperate. Though Sony is still losing money on hardware, the CEO informs us that the amount they are making with software is greater than the lost they suffer with hardware. Finally, he doesn't think they will be a price cut for the PS3 before Christmas.

With games like the recently announced Eyepet, it seems like Sony at least wants in on some of that casual gamer action that Nintendo has been getting. Another point to ponder is, should Sony reconsider their strategy of selling a system with such huge losses the next time around? Or will the PS3 make back all the money it lost in the beginning, just like the PS2?

[Via Maxconsole]

This article was originally published on Joystiq.