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Sony: The PS4 Is Already Profitable

It took a long time before the PlayStation 3 was profitable.

Obviously, considering Sony's approach to their latest console (cheaper to manufacture, lower retail cost, etc.), they didn't want a repeat of history.

And so far, the strategy is working: Speaking during a business meeting, Sony president Kaz Hirai said the PlayStation 4 is "already contributing a profit on a hardware unit basis." As reported by Japanese source AV Watch (and translated at NeoGAF), Hirai said this result has formed a "very different business framework from that of previous platform businesses." Basically, this means the PS4 is already profitable; the PS3 and PS2 were sold at a loss for quite some time.

The PS3 especially racked up big losses but that won't happen with the PS4. Hirai also said that over half of PS4 owners had subscribed to PlayStation Plus, which we've heard before and it's hardly surprising, given the necessity of Plus for online play.

Tags: ps4, playstation 4, sony, ps4 profit, ps4 sales

5/24/2014 10:32:51 AM Ben Dutka

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Temjin001
Saturday, May 24, 2014 @ 11:10:24 AM
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Good to know. It also suggests that Sony could drop the PS4's price if they felt the need to maintain a sales advantage. If I remember right, there was a report produced some months back that detailed the component costs of the XO and the PS4. What was interesting is that, if I remember correctly, the PS4's base unit was cheaper to produce than the XO's base unit. This was largely due to the XO's highly expensive esRAM. So if this report was correct, Sony still stands a better chance to maintain a price advantage over MS if they're compelled to do so.

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Temjin001
Saturday, May 24, 2014 @ 11:26:16 AM

http://allthingsd.com/20131126/microsofts-xbox-one-cost-90-more-to-build-than-sonys-ps4-teardown-shows/

Here's that report. The author attributes about $75 or more expense to the Kinect itself. Which would place the kinect'less XO at about $425. Granted, we're about 6 months into the console cycle so perhaps costs have already reduced for MS as well.

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WorldEndsWithMe
Saturday, May 24, 2014 @ 12:04:07 PM
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Hardware profit is good when you've got to focus on investing in software.

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Bio
Saturday, May 24, 2014 @ 1:17:40 PM
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That's pretty dang fast, and good news. Almost certainly means we won't see a million different SKUs where they try to figure out the most profitable model.

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wiiplay [Administrator]
Saturday, May 24, 2014 @ 6:54:37 PM

I read that in Claptrap's voice.

Thanks for being awesome!

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slow and smart
Saturday, May 24, 2014 @ 1:17:43 PM
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That's good news!So Sony can drop the price if they want to be cheaper than the kinectles-xboxone,hmmmm....do it before the end of this year Sony because then i will buy me a ps4,50 bucks cheaper? [ If not i will buy it anyway]

Last edited by slow and smart on 5/24/2014 1:18:12 PM

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kraygen
Saturday, May 24, 2014 @ 1:49:44 PM
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Sony needs to follow this trend in all their other departments. Instead of selling everything off, they need to learn to make a good product that doesn't cost them twice what they sell it for.

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Corvo
Saturday, May 24, 2014 @ 5:46:18 PM
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People buying and selling them back have been making money for awhile too.

I saw one ps4 a few months ago being sold for 4000$. With 54 bidders on the ebay. Completely ridiculous

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wiiplay [Administrator]
Saturday, May 24, 2014 @ 6:57:33 PM

A friend of mine bought a Wii U on eBay for $950 the week after it was released.

He regretted that purchase a month later, after sales dropped.

(He bought it for his kid, so he gets father of the year, as well as financial mishap of 2012)

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BillyN
Saturday, May 24, 2014 @ 11:31:15 PM
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Its not already profitable. Unfortunately Kaz is lying (please don't thumbs me down, hear me out before you get mad!)... Sony just lost $78 million in the gaming division. Theres also losses expected for Sony next financial year. Theres still a likelhood their won't be a profit next quarter in the gaming division yet... Don't hate me for saying it: its true...

It would be cool if Sony showed a bunch of cool new IPs and God Of War...

But their focusing on graphics with: The Order and its already been downgraded to be smokey... Colin from IGN even said it was an average answer to God of War, which has me worried...

But their trying to advertise Watchdogs as an exclusive, which is sneaky because we know it isn't and the textures are looking damaged compared to the Xbox One version.

Just get the PS3 version! Price ain't worth it.

I hope they do a God of War 5 soon... And some more fun exclusives in the Infamous vein!, because Sony was used to be known for having games with good gameplay, but were getting alot of story focused stuff with meh stories and we deserve better...

Don't hate, because i just want whats better for the console, better IPs, better games, better exclusives...

Other then Infamous, theres nothing really else yet and im extremely worried because look at all the Xbox One exclusives they got already: Dead Rising 3, Ryse, Killer Instinct, Titanfall, Sunset Overdrive (soon)....

Sony hasn't given great exclusives other then Infamous and some indies, lets be real..

Gamers that bought a PS4 deserved better. Its been close to 6-7 months and even before there was alot of tell, but not much show...

Im just saying you and I deserve better...

We should get more then crumbs if Sony is going to have market leadership with 7 million shipped...

Anyways, please don't get mad, because everybody here deserves exclusives and games that justify a PS4 purchase, not just for bragging rights.
Wii U has a ton of great stuff, Xbox One already has delivered a bunch of cool exclusives, So why isn't Sony picking up the pace?

I don't want this to be the PS3 generation again where Sony onlys gives bits and pieces here and there.... We all deserve better... Peace...

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Crossrds
Sunday, May 25, 2014 @ 1:57:52 PM

Do you realize that they are talking about a profit of one product vs a whole division, Sony as a whole lost 1.8 billion. A loss in the gaming division is the investment they are hoping for on new I.p.'s and games. The ps4 is profitable at 30 bucks per unit. 7 mil units sold x 30 equals a 210 mil. Profit on that product. Also in the wsj article it site majority of losses in sony's pc business http://online.wsj.com/news/articles/SB10001424052702303496804579365813295595026
Sony is large and just because it posts a loss it needs to lay out its future for investors.

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Thinker
Sunday, May 25, 2014 @ 3:24:09 PM

Given that you are trying to list EVERY XB1 exclusive like Ryse, unreleased games like Sunset Overdrive, and non-exclusives like TF (PC) in your quest to evangelize the XB1, it's only fair to list all PS4 exclusives (and indie games which show up as well), e.g. Knack, Killzone Shadowfall, Towerfall, Infamous, The Order, Uncharted 4, DriveClub, 'Project Beast', 'Project Deep Down', Stick It To the Man, The Witness, etc, etc.

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PlatformGamerNZ
Sunday, May 25, 2014 @ 3:11:28 AM
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well i guess this is good for sony's long term health but as for the short term health idk yet.

happy gaming =)

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PlatformGamerNZ
Sunday, May 25, 2014 @ 4:05:44 AM
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well this is good aye a good sign heading in the right direction sony.

happy gaming =)

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trumpetmon65
Sunday, May 25, 2014 @ 5:50:47 PM
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now if they could just get their TVs to turn a profit...and their phones...and cameras...and headphones. I love their phones by the way. I have the xperia z. very niiice.

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