According to an interview with the AP, Sony experienced a $455 million loss in its game division in 2006 and an overall loss of 5.3% in the company. Sony's Senior Vice President, Takao Yuhara, stated that the company could lose as much as $1.6 billion by the end of the fiscal year in March.

Recent news states that Sony is definitely anticipating price cuts on their Playstation 3, almost surely by next March, 2008 when their fiscal year ends.

The losses are starting to add up for Sony financially but this is a common thing in the following month and year or so after a console launch.

Could this be the answer to a less than stellar reception of the PS3? I personally believe it would take almost a $100 price cut to make it more competitive with the Wii and 360.

More news will be forthcoming on this topic, and a thank you goes to the GotFrag Hardware division for this piece.

Source: GameSpot

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