News Section Logo NEWS - Return to news section

 

Sony: PS4 Already Profitable

Posted by: , 16:58 AEST, Sat May 24, 2014
Tags: Gaming, PS4

Permanent Link     Add Comments
Sony says the PS4, at $399, is already profitable. Unlike the PS3, which took several re-designs and 4 years to reach the same point!
News story feature image
Image/Photo Credit: Sony

Unlike the previous generation PS3, the PS4 is already profitable after being on the market for only six month.

For the PS3, it took Sony four years to reach profitability, and that's despite the console launching at a price premium up to $200 more than the current price of the PS4. The early PS3 years had a major effect on Sony's bottom line, up to $5 billion in losses, and the company is hoping the same situation won't be repeated with their new console.

The latest Sony earnings report, unfortunately, is still not painting a cheery picture for the Japanese electronics giant. With a net loss of $USD 1.26 billion, the company could ill afford to financially support another loss making console.

Luckily, it seems Sony will not be adopting the same business model with the PS4. Sony president Kaz Hirai was keen to point out that the PS4 is already profitable, thanks in-part to the mandatory requirement for a PlayStation Plus subscription in order to play online. With gamers embracing the PS4 in ways they've never done so with the PS3, Sony's gaming division is also contributing to help make the company profitable, with gaming revenue up 38.5% for FY 2014. A total of 14.6 million consoles were sold in the same financial year.

Microsoft last week responded to the growing success of the PS4 by dropping Kinect 2.0 from their rival Xbox One console, while dropping the price to match the PS4's $399.


Comments:

Related News:

News Icon PS4 Sales Top 7 Million Worldwide, Leads U.S. Sales in March

posted by: Sean F, 17:45 AEST, Sat April 19, 2014

News Icon PS4 Has Worldwide Million Unit Plus Sales Lead Over Xbox One

posted by: Sean F, 03:42 AEDT, Sun January 12, 2014

News Icon Another Microsoft Reversal: Kinect Dropped From Xbox One, Now Same Price as PS4

posted by: Sean F, 18:19 AEST, Thu May 15, 2014

News Icon PS4 Can Play PS3 Games Via Online Streaming

posted by: Sean F, 22:54 AEST, Thu September 26, 2013

News Icon PS4 is Top Console For November in US, Xbox One 'Fastest Selling'

posted by: Sean F, 18:32 AEDT, Sat December 14, 2013