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Sony “not planning a major loss” with the PS4 launch

Sony “not planning a major loss” with the PS4 launch

The launch of the PlayStation 3 was an expensive time for Sony, with the company making a loss on every PS3 sold. Taking the loss leader approach, Sony chose to sell the console as cheaply as possible in the hope of making up profits through software sales. How successful they were is debatable, but the facts show that they lost a lot of money in those early days.

Luckily, that doesn’t seem to be the case this time. “Unlike PS3, we are not planning a major loss to be incurred with the launch of PS4,” said Sony CFO Masaru Kato in an earnings report earlier today.

“At the time we developed PS3, we made a lot of in-house investments to develop the chip, the Cell chip. Development of the chip saw the silicon processing and all the facilities invested by us ourselves. But this time, yes we have a team working on chip development, but we already have existing technology to incorporate and also product investment and all the facilities will now be invested by our partners, other foundries, so we don’t have to make all the investment in-house.”

It’s great news and hopefully will give the PS4 a much smoother and more profitable launch than its predecessor. From what we’ve seen so far, it definitely deserves it. Head over to Eurogamer for the full story. 

 

[mpu]




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