Sony estimated to lose about $1 billion on release of PS3
A recent report by Merrill Lynch Japan predicts Sony will lose more than $1 billion on the PS3's first year on the market.
The analyst company recently calculated that the production of a single console will cost Sony approximately $494, but it will likely sell for about $399, a net loss per unit of almost $100.
These estimates are based on the current cost of hardware needed to build the console.
While Sony recovered from a similar, but smaller, loss on the release of the PS2, analysts are not sure that the company will recover from such a huge loss this time.
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