A company called iSuppli reduced my PlayStation 3 to a pile of screws, chips and diodes in order to work out the manufacturing costs, and I was astonished to find Sony had been losing money on every one it's sold.
This is partly because it has been giving away a free Blu-ray player in every one, making the PlayStation a games console and HD movie player in one box.
So, with 41 million PS3s sold to date, they've lost about £2bn, but captured a huge share of the market.
As they're making money on every Blu-ray disc sold, and HD-DVD has now died a death, it appears to have been a gamble worth taking.