The PlayStation 3's initial production cost is estimated to have been US$805.85 for the 20 GB model and US$840.35 for the 60 GB model.[250] However, they were priced at US$499 and US$599 respectively,[251]
meaning that every unit was sold at an estimated loss of $250,
[250] contributing to Sony's games division posting an operating loss of ¥232.3 billion (US$1.97 billion) in the fiscal year ending March 2007.[252] In April 2007, soon after these results were published, Ken Kutaragi, President of Sony Computer Entertainment, announced plans to retire. Various news agencies, including The Times[253] and The Wall Street Journal[254] reported that this was due to poor sales, while SCEI maintains that Kutaragi had been planning his retirement for six months prior to the announcement.[254]