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This is from http://www.redherring.com/insider /2002/0719/playstation071902.html
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"Along with the amount it will spend in its alliance with IBM and Toshiba, Sony is planning to spend billions more on designing and building the PlayStation 3 console, not to mention the advertising, marketing, and expensive broadband connections. Sony had $5.1 billion in cash at the end of fiscal 2002 (ended March), enough to finance its ambitious plans. Its game division accounted for 62 percent of the $1 billion in operating income that Sony reported, thanks to strong sales of the PlayStation 2."
For one thing, as has been mentioned, Sony sells electrical goods of a wide verity, not just consoles. These could bring a shed load of profit over the money the company gets from its console.
For a second thing, The PS2 and PS1 are two of the biggest selling consoles ever, each selling 150 million consoles between them, and then there is the software, as well as hardware on top of that which would bring in a huge profit.
Thirdly, If Sony where going bust then I doubt they would be developing yet another console for the next generation of games machines, namely the PS3.
This sounds like a rumour that I suspect was started by a fanboy who wanted to reassure himself that the console they own wouldn’t fail because of the PS2's success.