A financial report published by Japan’s National Printing Bureau indicates that Sony Computer Entertainment are running a ¥95 billion deficit (approx £764 million, $1.3 billion). Sony has had a poor run of luck with poorly performing first party games, natural disasters and the hacking of the PSN over the past year.
According to the document, Sony attributes ¥76 billion of that to Selling, General & Administrative Expense (SG&A) and ¥17 billion to taxes. You can also expect a lot of money to be spent on researching and developing the PlayStation 4.
[Source: NPB]