Sony is expected to lose an estimated $3.29 billion on the PS3 over the next two years according to analysts.
Sony's decision to include Blu-Ray technology is believed to have delayed the launch of the console.
"Sony is pushing the envelope of innovation here. In terms of production it has made a rod for its own back. The newness of the technology makes the console expensive to assemble and means that components are in short supply," Jaskson said.
Critics claim Blu-Ray isn't necessary, but Sony is sticking by its decision to include it.
"Including Blu-Ray is an indication of our determination to make PS3 future-proof," Phil Harrison, president of Worldwide Studios at Sony Computer Entertainment Europe told the paper.
"We need Blu-Ray as game designers to feed the hunger of PS3's powerful Cell and RSX processors [the graphic chip of the PS3]. Adding support for Blu-Ray movie discs makes it even more attractive to consumers."
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