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.

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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.

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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.

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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.

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With the first link, the chain is forged.

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