It's because they're customer service sucks and if your PS3 is even 1 month out of warranty and you get the YLOD they make you pay $150 even though it's their faulty hardware and they should've offered a longer warranty than just a year. Sony's customer service is one of the worst I've had the displeasure of dealing with.

Maybe they just need to come with another root kit to fix this problem.

They should have posted such a loss BEFORE they've managed to BRIBE everyone into using BluRay instead of HD-DVD. Now we're stuck with the EXTREMELY HIGH PRICED BluRay Discs :( and there’s no competition to drive the prices down .

If it weren't for his outlandish ideas for the PlayStation 3, Sony might not be in this mess and may have absorbed the current crisis. The idea to force BluRay onto the market caused Sony to lose massive amounts of money to sell each PS3. While they are getting closer to break even they would love to have back those several billion dollars they lost on the PlayStation 3.

And for those who think it's only Microsoft with buggy and broken consoles. I wonder why no one has investigated Sony for selling defective PlayStation 3's with Bluray drive failures and the now infamous YLOD "Yellow Light of Death" as it's commonly referred to on the Sony PlayStation 3 forums.

How about "too expensive" and "too proprietory"?

The Games division is doing quite well, PS2 and PSP are very profitable, as are PS3 software sales, the PS3 hardware is these days close to break even.

It's the other Sony divisions that are not so healthy.

Still I suppose it's still trendy to PS3Hate right? (you have to wonder how Microsoft can produce tens of millions of RROD consoles and still the sheep love them).

It couldn't happen to a nicer rootkit, er, ah, er, company.

I think Sony's official response to this says it all: "Sony understands that a story appeared in the media regarding Sony's expectations on operating results for the fiscal year ending March 31, 2009. Sony has made no announcement in this regard and at this time has no further comment."

You can try read the "full" comment (http://www.sony.com/ces/products/computers.php?ref=http%3A//www.sony.com/index.php) but you won't go any further. That's about it!