$8 billion total loss incurred by Microsoft and Sony this gen

It’s a known fact that Microsoft and Sony have bled a lot this gen due to the losses taken by them on Xbox 360 and PS3.

We also know that Sony has sold the PS3 for a loss since 2006 and they started making profit on it since 2010, and Microsoft had to face consumer wrath due to RROD and had to spend a lot on a warranty program.

According to a new article by Industry veteran Ben Cousins over at Kotaku, he has added the losses made by Sony and Microsoft based on their financial statements, and while the legitimacy of this has to be questioned, it makes a lot of sense too considering these are official numbers.

You can check out the table he made. Here’s what he had to say about the current gen consoles and how the platform holders had make them sell.

“Consoles like Xboxes, PlayStations & the Wii U are sold at a loss. It costs more to manufacture and distribute the device than it is sold for. Console manufacturers do this because they hope to make back the money from the license fee they charge for every game sold on the system,” he said.

“In order to offset the huge cost of hardware production, distribution, R&D and marketing, a hardware platform holder must sell vast quantities of hardware, and even bigger quantities of software. So much needs to be sold, in fact, that the data points to PS3 and Xbox 360 having made huge losses, despite having sold 70+ million units of hardware each.

“Of those 70 million Xbox 360s sold, a large proportion (approx. 40%) were bought after the most recent price cut of August 2009. Of the 70 million PS3s sold, a large proportion (approx. 42%) were bought since the introduction of the PS3 Slim.”

The last quote is in fact true considering the PS3 started selling a lot after the PS Slim was released on the market.

What do you think about all this? Let us know in the comments section below.