Sony Computer Entertainment Inc could lose 20,000 yen on every PlayStation 3 it sells due to expensive devices, the Nihon Keizai Shimbun reported, citing an estimate by Data Garage Inc.

Data Garage, an information technology research firm, estimated that the electronic components in the high-performance game system cost a total of 72,000 yen.

Sony Corp's game unit now sells PS3, with a 20-gigabyte hard-disk drive, at 49,980 yen each.

In comparison, the production cost of the PlayStation 2 exceeded its retail price by 10,000 yen to 12,000 yen when it hit the market in March 2000, according to the report.

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Does sony count the money they spent develloping the ps3? Cause that wouldnt make the ps3 look any more of a deal.

it's sad to see a great company like sony lose this much money. i hope they are coming up with a plan / strategy to profit something out of the rest of the releases of ps3 in 2007.