Originally posted by link:

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Sony Recouping Hardware Losses Through Software Price-Hike

scee.jpg Late last year, SCEE pushed a new 40GB model of the PS3 onto the European and Australian markets. Around the same time, the recommended retail price of Sony's first-party titles - which had since launch been slightly cheaper than those from third-parties - quietly went up, in Britain by a few pounds, in Australia by AUD$10. In case you couldn't previously put two and two together, one is the result of the other. SCE Australia (a subsidiary of SCEE, so it stands to reason the decision came from Europe) boss Michael Ephraim:

...as is well documented, PS3 has been a very expensive console to produce and sell. The losses are public knowledge. About six months into the year we realised we needed to increase our revenue on software to be honest. We're still in line with third parties, and it was just a business decision regarding profitability.

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