On Sony's Losses

This is my surprised face. (/sarcasm)

Look, I've been saying since this generation was knee-high to a grasshopper it would go down this way. Microsoft lifted all they could from Sony's playbook to launch the Xbox and added that usual Microsoft flair - burn lots of cash. This generation, Sony was going to retun the favor. Where Microsoft is looking to level the 360 into profitability (or rather position the brand for it in the next generation), Sony is trying to spike their way into an important market - high definition media. They've taken HD twice as seriously than Microsoft from the start with HDMI support, 1080P support, larger hard drive and Blu-ray. Many of those being features Microsoft said gamers flat out didn't need - and then later released the Xbox Elite anyway.

Of course Sony is bathing in the red here. The real answer to the PlayStation 3's success is at least a year off, if not two. Remember, if we're just going by dollars - the Xbox was a miserable failure.