Sony CEO Howard Stringer told the German press that his firm isn't suffering as a result of the Nintendo Wii's popularity:
"The Wii is a well-made device that has found a new target group. For a while, we held the same target group with the SingStar karaoke game. But perhaps we neglected to pursue that avenue," Stringer told Die Welt.
"PlayStation games are rather designed for those who play a lot. Although it's a different strategy, it pays off. We currently have a production bottleneck with the PlayStation 3."
In other words, people are snapping up PS3 consoles faster than Sony can make them, according to Stringer. "You also know, however, that our business model is not perfect, and that we make a loss on every console we sell," he conceded.
"Nintendo makes money with the hardware alone, which may be a superior business model. But the Wii is not succeeding at our expense - it is not hurting us."
More info at Eurogamer. Stringer also shared that Sony is already earning more money with the games than it's losing with the PS3 hardware. However, the firm is still very far from earning back the $3 billion it invested in the development of its latest gaming console.