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