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PS4 Architecture Means Sony Won't Have To Suffer Major Losses

Historically, Sony has voluntarily taken huge losses on new gaming hardware. But this time around, thanks to cheaper, off-the-shelf computer parts, the PS4 shouldn't be a drain when it launches later this year.

During an earnings call today, Sony CFO Masaru Kato said they "are not planning a major loss to be incurred with the launch of PS4." In contrast, the PS3's original and expensive components had to be developed in-house, as Kato added- "...development of the [Cell] chip saw the silicon processing and all the facilities invested by us ourselves." Even in 2010, The Wall Street Journal estimated that Sony was still losing $18 on every PS3 sold.

But with the PS4, Kato said that while they have a team working on chip development, they already have "existing technology to incorporate." It also helps that "product investment and all facilities will now be invested by our partners." The PS4 boasts an APU developed in conjunction with AMD, which features an 8-core 64-bit processor and a custom Radeon GPU. There's also 8GB of GGDR5 RAM, a feature many developers appreciate.

Obviously, the reason for cheaper components wasn't just so consumers could save some money come launch day; Sony just couldn't afford to lose a big chunk of change again.

Tags: ps4, playstation 4, ps4 cost, sony

5/9/2013 11:29:32 AM Ben Dutka

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Legacy Comment System (10 posts)

Thursday, May 09, 2013 @ 12:59:46 PM

yep, I see this as a logical step for Sony based on their financial health. I also see it as a possible console exit strategy, if necessary, if things continue to go south and they're forced to migrate their software to other hardware not by them. It's just smart thinking in a shaky environment. LONG LIVE SONY!

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Thursday, May 09, 2013 @ 1:12:25 PM

This is such a huge win for Sony as a whole. Sure, the PS4 isn't some piece of tech from the 23rd century, but it is an improvement over the PS3 and a profitable one at that.

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Thursday, May 09, 2013 @ 1:21:26 PM

All good.

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Thursday, May 09, 2013 @ 4:15:36 PM

$299-$399?, I hope.

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Thursday, May 09, 2013 @ 7:48:53 PM

I have to do it.
It's not using 'off the shelf' computer parts :\

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Thursday, May 09, 2013 @ 10:57:26 PM

Somehow this concept never seems to stick no matter how many times Sony or AMD iterates it.

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Friday, May 10, 2013 @ 5:03:21 AM

So true, but I've given up trying to argue against it.
Too many commenters around here insisted too intensively too long on this being "just a low-end PC in a console shell" so it's now been established as some sort of fact, it seems.

Last edited by Beamboom on 5/10/2013 5:04:11 AM

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Saturday, May 11, 2013 @ 2:02:07 PM

True, but it IS off the shelf technology. What I mean by that, is the tech uses the same architecture, same process, same development paths, and the same fabrication facilities that will lead to that tech being dragged along with the "real" off the shelf components that make PCs, and thus will have it's price rapidly plummet in the following years.

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Friday, May 10, 2013 @ 5:50:47 AM

yup, and thats lost it its soul, its identity, and its advantage!
the whole allure and excitement, enthusiasm, of playstation has always been its alien architecture.
its highly specialized way in doing things, and because of that highly specialized way it made it very ambitious.
sure its cheaper to make, great, but at what cost?
next ferrari and lambo will ditch V12s and go with simpler cleaner V8s because there cheaper, greener, and kinder to the environment.
who cares that V12s have always been, and always will be the signature, the soul of their flagship models!
biggest draw of the BMW M5 was it used the same engine out of the williams F1 car.
now it just has a run of the mill boring V8.

they have taken a tiger and removed its stripes.
sure its still a tiger, but its lost its identifying feature, its allure, its uniqueness, its SOUL!

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Saturday, May 11, 2013 @ 9:06:51 PM

Funny considering Sony didn't develop this machine.

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