Sony CEO Howard Stringer told a Wall Street Journal conference that the PlayStation 3's launch teetered on the brink of disaster.
"Two years ago PlayStation was on life support," Stringer said during the Wednesday event, adding that high development costs were almost "catastrophic" for the company.
Today, however, the picture is brighter, given Blu-Ray's format victory, a lowered price and less paltry gaming lineup.
Stringer pronounced himself "very pleased" with the console's technical performance and said the format victory over HD-DVD saved him from being blamed for "Betamax 2."
Despite claims from some quarters that digital downloads will supersede physical media altogether, Stringer said consumers will not eschew physical media for a long time.