Analysts sceptical Sony's PS3 gamble will pay off

By Will Head on Nov 30, 2006 12:51 PM
Filed under Software

Company expected to lose US$3.29bn over two years.

Sony is expected to lose an estimated US$3.29 billion on the PS3 over the next two years according to analysts.

Paul Jackson, of Forrester Research, told The New Zealand Herald: "Sony is playing a long-term game for consumers' living rooms and future entertainment beyond gaming."

Sony's decision to include Blu-Ray technology is believed to have delayed the launch of the console.

"Sony is pushing the envelope of innovation here. In terms of production it has made a rod for its own back. The newness of the technology makes the console expensive to assemble and means that components are in short supply," Jaskson said.

Critics claim Blu-Ray isn't necessary, but Sony is sticking by its decision to include it.

"Including Blu-Ray is an indication of our determination to make PS3 future-proof," Phil Harrison, president of Worldwide Studios at Sony Computer Entertainment Europe told the paper.

"We need Blu-Ray as game designers to feed the hunger of PS3's powerful Cell and RSX processors [the graphic chip of the PS3]. Adding support for Blu-Ray movie discs makes it even more attractive to consumers."