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Sony: PS4 Economics “Closer To That Of PS2 Than PS3”

The PlayStation 3 didn't start making a profit for years after its launch. However, Sony doesn't expect the same problem with the new PlayStation 4.

With a piece of hardware that's much easier and cheaper to produce, the PS4 is primed to make money right off the bat. In fact, Sony UK MD Fergal Gara told Bloomberg that the economics of PS4 are "closer to the economics of PS2 than they are to PS3."

"If you consider with PS3, it was a highly bespoke architecture; it was expensive to make. And we weren't making money on many of those devices, even at a high price point. With PS4 we come at it at a very lean price point and our economics will be far, far [more] favorable than the PS3. So that is a job to be commended really for the internal team and of course it's done with the gamer in mind."

Yesterday, a hardware teardown from IHS revealed that the PS4 cost about $381 to make , which is below the system's $399 retail price tag. When you include the retailer cut and other fees, Sony is not yet making a profit on every system sold, but that time isn't far off. In the meantime, Sony will count on software and services for profitability.

No console may ever top the PS2 in terms of sheer popularity and sales but at least the PS4 is off to a good start.

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10 years ago

always said the ps3 would be the death of $ony!
it cost them so much, not only in cashola but also in reputation.
they lost so much money they started cutting costs EVERYWHERE, and well its hurt them big time.
theve gone from one of the biggest TV manufactures out there, to one of the last.
theve gone from one of the biggest mobile manufactures, to one of the smallest.
sony erriccson use to be huge, now you say xperia and people say xperia who?
shame, especially considering xperias are actually the only $ony division who continue to make quality products, and actually market them!
maybe if the rest of $ony ran the way xperia does the company would not be in the financial hole there in………

10 years ago

man sony have gone in a bad way in since the ps3 really i mean while everyone was on the ps2 they were doing alright but yeah since the ps3 came out they start osing money big time and thye've be doing bad since then and i hope this brings them back to something of what they've been so the playstation keeps going strong for another few decades and yeah their TV's were huge i mean we have had sony TV's in the house for as long as i can remeber and my friends dad got a new tv recently and it's a sony i men they're still there ish but samsumg have come through but i hope they can restore their business over all for the sake of playstation

happy gaming =)

10 years ago

Do us all a favor, and just give this page a quick skim:

slow and smart
slow and smart
10 years ago

Lucky for us the consumers Sony is back in the driver seat in pole position,the late and expensive launch of the ps3 is now turned in a marketleader ps4 position direkt from launch better and cheaper than the competition,worldwide they will be at least a 2-1 or even a 3-1 marketleader.
The tv's and for example laptops are still of a very good quality,but the competition has indeed grown a lot and Samsung is very strong on this.

10 years ago

SHuhei Yoshida ,B.S in economics and MBA at ucla

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