After Playstation's launch many criticized the high price. But not only the consumers were having a tough time, Sony's production costs were estimated at a price of more then $800. Way more then Sony ever was intending to ask for the console, so the Japanese were losing hundreds of dollars per console.

In a year Sony managed to get the costs to $400 a console, but they are still losing. They already came far by simple changes in supply and new advances in technology. Sony also removed the backwards compatible engine for PS2 titles from its 40GB unit.

Sony Entertainment openly stated that they are hoping for a profitable 2008.