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Although it has been confirmed that Sony is still losing money on each PlayStation 3 sold the good news is that the company is losing considerably less.
According to Kotaku Sony has cut its losses on the PS3 from $37 (R281) to $17 (R129). This is reportedly as a result of reduced functionality and size of the console as well as a gradual reduction in hardware prices over the years.

This may well see Sony achieve its goal of turning a profit on every console sold by 2011 – quite a feat considering that the company initially released the console for $699, which meant they were incurring a loss of roughly $250 on each console.

Given the sudden increase in PS3 sales in 2009 and Sony’s recent positive profit report it seems that the company made the right choice in 2006 when it chose to back a console design which was considerably ahead of its time.