DigitalBattle.com

Kotaku reports that the disparity between the production costs of the PS3 and its retail price point caused Sony to lose roughly $3.3 billion over 2007 and 2008. The company revealed this in its fiscal 2008 annual report. It noted that the company shed $2.16B in 2007 and $1.16B in 2008, adding that its major investment in the early development and introductory phases of the PS3 “may not be fully recovered.”

Sony further added that these costs may even be unrecoverable if the platform “fail[s] to achieve such favorable market penetration… resulting in a significant negative impact on Sony’s profitability.” The company then went on to remark that although it may eventually see a return on its investment, it is still possible that they may end up in the red over the PS3’s introductory period.