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PlayStation 3, which now ships at $400 almost half the price at which it used to ship at the time of launch, is still a loss making business for Sony. Sony cut down on many features like leaving out backward compatibility with PS 2 and trimming down more than 1200 parts. However even after doing all that the device still costs $445 per unit to assemble, so Sony is incurring a loss of $45 on each unit shipped. The more they’ll sell the more loss the company would incur, this is one reason why Sony didnt slashed prices of PS 3 for the Christmas season this year, they simply didnt wanted to sell and lose more.