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Friday, July 01, 2005

Sony, Microsoft May Take Console Losses for Gaming Wins

Sony, Microsoft May Take Console Losses for Gaming Wins

The real game comes down to software, where Microsoft is rumored to be considering Xbox games for other platforms and looking to repeat its popular "Halo 2" game release. Sony, on the other hand, has struggled somewhat with its strategy on software, where console manufacturers typically make back their hardware losses.

A recent investor report has highlighted expected losses for PlayStation 3 maker Sony (NYSE: SNE) , which will take an estimated hit of US$100 per sold next-gen gaming console when the devices go on sale next year.

However, industry analysts said the negative margin is nothing new in gaming, pointing out that Microsoft (Nasdaq: MSFT) , which will roll out its Xbox 360 sooner and for a lower price, will also be forced to sell its next-gen console at a price that's less than what it costs to produce it.

Anonymous Raphael Muszynski
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