Sony Finally Making a Profit on PS3 Hardware

June 29, 2010 -

Sony Computer Entertainment Worldwide studio head Shuhei Yoshida says that the PlayStation 3 is finally making a profit after 4 years. Speaking to IGN, Yoshida says that the company has finally turned the corner when it comes to hardware. The success or failure of a system often depends on this milestone, which took a bit longer for Sony because of the highly expensive components in the PS3 like the Cell processor.

Obviously as components become cheaper - and some elements of the system like backwards compatibility are eliminated or replaced by software solutions - the cost of doing business becomes less of a strain. Yoshida did not disclose how much it costs to make a PS3 system.

"This year is the first time that we are able to cover the cost of the PlayStation 3," he told IGN. "We aren’t making huge money from hardware, but we aren’t bleeding like we used to."

While Yoshida is keen on making money off each system, he is not so keen on disucssing price cuts for the PS3. He said that a price cut this year is unlikely, and that the company is focusing on 3DTV, games, Move, hardware bundles (no doubt Move related) and getting stock back on retail shelves.

"We have lots of great games coming out and innovations with Move and 3DTV, so we don’t believe this is the time for us to think about a price drop," he said.

Source: IGN UK


Comments

Re: Sony Finally Making a Profit on PS3 Hardware

This just proves Sony didn't go the cheap way and built the PS3 for long lasting performance.

and not a just a "how can we make our customers pay as much as possible for less" ploy.

Re: Sony Finally Making a Profit on PS3 Hardware

Well, considering the fact that developers STILL aren't utilizing the system to it's full potential solely due to the fact that it is far too complicated to do so for the minimal improvement such effort would secure, it was a waste of money on Sony's part to make it that way in the first place.

---

With the first link, the chain is forged.

--- With the first link, the chain is forged.

Re: Sony Finally Making a Profit on PS3 Hardware

It isn't a good thing if it takes four years to finally break even on cost of production per unit, when your competition - Microsoft - has a statistically inferior product with similar output that broke even on per unit COP in not even two.

---

With the first link, the chain is forged.

--- With the first link, the chain is forged.

Re: Sony Finally Making a Profit on PS3 Hardware

FANBOY RANT WARNING! The only reason Microsoft broke even sooner, is because people kept having to replace their consoles that broke due to RROD.

Re: Sony Finally Making a Profit on PS3 Hardware

Actually, that would make them break even LATER, as the RROD would double or even triple the per-unit CoP, since the consumer is only paying for one unit, but getting two or three units over time.

This is a problem Sony doesn't have.  Someone buys one unit, they usually keep one unit.  Microsoft still broke even faster, giving out two or three units for every sale in the long term.

---

With the first link, the chain is forged.

--- With the first link, the chain is forged.

Re: Sony Finally Making a Profit on PS3 Hardware

Or their competition -Nintendo- who has been rolling in profit since they have made a profit on every console sold since launch.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Sony Finally Making a Profit on PS3 Hardware

Absolutely true, but I left Nintendo out since the Wii doesn't have the horsepower to have games that rival the other systems, as a general rule.  That is actually part of the reason why the Wii was profitable from day one - it didn't try to be the best at everything right out of the box.  It did one thing extremely well - play fun games that crossed the threshold of casual-versus-hardcore gaming.

---

With the first link, the chain is forged.

--- With the first link, the chain is forged.
 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
TechnogeekFor a change of pace, here's a story about death threats aimed at games industry employees via Twitter that has nothing whatsoever to do with Gamergate: http://kotaku.com/indie-dev-threatens-gabe-newell-has-game-removed-from-164867886910/21/2014 - 4:38am
MechaCrashThey aren't being held accountable because *this is what GamerGate is really about.* Hatred and harassment under a thin veneer of concern for ethics; it's a rotten movement right down to the core. Related: http://tinyurl.com/o5mamgn10/21/2014 - 1:53am
james_fudgeodd why would they delete pro vita comments?10/21/2014 - 12:50am
Neo_DrKefkaI am a little disturbed that members of #GamerGate are supporting and not holding its same members accountable when they say remarks that are unacceptable!10/20/2014 - 11:39pm
Neo_DrKefkaSome #GamerGate people are defending @kingofpol many are however lashing out at him but if we held Sam Biddle accountable and Gawker so must we hold @kingofpol and #GamerGate10/20/2014 - 11:30pm
Neo_DrKefkaA big name in the Gamergate movement Kingofpol uses a offensive term about autistic people and in turn the entire GamerGate community lashes out at him. We do not need false leaders who think they can say anything https://twitter.com/Kingofpol10/20/2014 - 11:07pm
Papa MidnightMP, honestly, I'm struggling to make heads or tales of the events being outlined in that reddit thread. I've never heard of Siliconera before, either.10/20/2014 - 10:48pm
MaskedPixelantehttp://www.reddit.com/r/vita/comments/2jbn6u/former_siliconera_moderator_leaks_screenshots_of/ Siliconera mods accused of deleting user comments that were pro Vita.10/20/2014 - 9:23pm
quiknkoldhttp://www.diamondbackonline.com/opinion/article_3fbc52ec-57eb-11e4-ba91-0017a43b2370.html10/20/2014 - 9:16pm
Neo_DrKefkaId love to see people come 2gether whether your 4 or against gamergate to gather 2gether and support an anti bullying charity and I would love to see a pro and anti gamegate debate on a neutral platform that promotes discussion and solutions10/20/2014 - 8:33pm
Neo_DrKefkaWhen someone was seriously hurt by a violent altercation. They have a prospective that people who have not had this experience lack. Bullying is a serious issue10/20/2014 - 8:30pm
Papa MidnightStraw Man to the fullest, but it gets the point across.10/20/2014 - 8:26pm
Papa Midnighthttp://i.imgur.com/dw0YPon.png10/20/2014 - 8:25pm
quiknkoldby doing something, Charitable Donations is an example.10/20/2014 - 8:06pm
quiknkoldAndrew : I dont accept any worded apology unless I can look the person in the eye when they say it. For me, he'd either have to make a video so I could read his bodylanguage, or actually do something. actions speak louder than words.10/20/2014 - 8:04pm
quiknkoldwell if they are looking for social pollution, Twitter is a great breeding ground for it. Its a breeding ground for deviance.10/20/2014 - 8:03pm
Andrew Eisenquiknkold - He had three tweets worth of apology the following day.10/20/2014 - 8:00pm
quiknkoldyou know, people keep saying Biddle's comment was sarcasm, but the thing is, Sarcasm doesnt translate well in Tweets. I took his words as really hateful, and unless I see an honest apology, I'm not going to be happy with him.10/20/2014 - 7:38pm
Matthew WilsonI doubt it will change much.10/20/2014 - 7:21pm
MaskedPixelantehttp://www.bbc.com/news/technology-29689949 Google's current piracy fighting plan.10/20/2014 - 6:58pm
 

Be Heard - Contact Your Politician