It's pretty much what we expect Howard Stringer to say these days: The PS3 is at a competitive price point and the Nintendo Wii is not a threat. Doesn't mean we believe it, just that we expect him to say it.

In an interview with German website Welt Online, Stringer said the company needs to get a handle on PS3 production costs. That production has cost Sony an estimated $3.3 billion, because they were selling the PS3 at a huge loss. Coming in third in the console race hasn't done much to offset those costs.

Asked if Sony can ever make that money back, he joked that it wouldn't happen in his lifetime. Stringer admitted Nintendo may have a superior business model, making most of its money on hardware profits. Of course, Sony's CEO admitting Nintendo is better at this point is not unlike the captain of the Titanic saying the ship might have a design flaw.