SegaWeb.com: Features: PS2: Disappointing The Market

While it isn't surprising that Sony is losing money with their PS2 launch, the extent of those losses has not yet been realized by most of the mainstream media. Bloomberg estimates that each PS2 costs $488 to build. Therefore, ignoring marketing costs - which can sometimes amount to $50-$60 per unit - every American PS2 represents a loss of $188 that Sony has to recoup with game sales. In Japan, where costs have been closer to $550 per unit, the unit retails for $370 - yielding a similar loss of $180.