“the large-scale investment required during the development and introductory period of a new gaming platform may not be fully recovered.” They also mention that they have invested a lot into the PS3 and the money may never be regained if PS3 “fails to achieve such favorable market penetration.”

The company did have one good note and that was the 26% sales jump they had last quarter. Sony is staying positive through these rough times, and feels with the launch of games like Metal Gear Solid 4 and Resistance 2 might boost the sales of consoles. $3.3 billion just isn’t a small hole to climb out of.