The all-singing, all-dancing PlayStation3 now has a delivery date and a price tag: $499. That sounds cheap for a piece of kit that will allow couch potatoes to watch high-definition films, surf the net and wage virtual battles. Is it enough to resurrect Sony’s fortunes?

Naturally, there will be pain first. Sony is projecting a Y100bn loss for its games division this fiscal year, as PS3 burns through income generated by its predecessor and the hand-held PSP. The expensive technology driving PS3 ensures speed, power – and high production costs. Analysts’ estimates suggest Sony will initially lose between $120 and $400 on every console sold. Sony plans to ship 6m between November, when PS3 launches, and the end of March 2007.