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.
KaylaKazeESO banning people for buying thier game when it was cheap, claiming fraud. http://www.reddit.com/r/elderscrollsonline/comments/36womu/deactivation_of_fraudulently_obtained_esotu_game/05/22/2015 - 5:29pm
Matthew Wilsonwtf? wounder if its time for a site redo with modern tech. somthing cheap like the latest version of word press.05/22/2015 - 5:27pm
Andrew EisenJames pasted my copy into a new story for me and the crappy Word formatting it inherited broke the site.05/22/2015 - 5:21pm
Andrew EisenHere's what happened: some weird bug is preventing me from uploading an article pic. Stories can't be saved with out pics so I couldn't write a story. So, I wrote it in Word and pasted the text into an email and forwarded it to James.05/22/2015 - 5:21pm
Goth_SkunkThanks E-Zeek.05/22/2015 - 5:09pm
E. Zachary KnightI fixed the shoutbox. Everyone thank me now. Or not. I don't care either way.05/22/2015 - 5:07pm
ZippyDSMleeShout box sttasahhppppp!!05/22/2015 - 10:47am
Andrew EisenOh, here it is. I thought it was gone. Yeah, I'm experiencing the same issue. Sent a note to tech.05/22/2015 - 10:43am
E. Zachary KnightAnyone else have the shout box pushed down to the bottom of the site?05/22/2015 - 10:38am
MattsworknameAndrew and EZK help me pull back a bit , still working on it05/22/2015 - 7:06am
ConsterI think IP is the only person here who doesn't think IP needs to dial it back several levels.05/22/2015 - 6:14am
Mattsworknamehttp://www.foxnews.com/politics/2015/05/22/fec-backs-off-flirtation-with-regulating-internet/05/22/2015 - 1:34am
MattsworknameWell, on another subject, Saw this, and while I know it's fox news, thuoght I should share it05/22/2015 - 1:34am
MechaCrashYeah, even I think IP needs to dial it back.05/22/2015 - 12:35am
Mattsworknamesays05/21/2015 - 11:17pm
MattsworknameRE doc, everyone has a tendancy to let emotion get ahead of them, especially in an annoymous forum like the web. We have have those moments. Ip however has nothing but those moments. it's why I stopped responding to him, regardless of what he thinks or05/21/2015 - 11:17pm
DocMelonheadNo offense, but I see your behaviors in the comment sections uncalled for.05/21/2015 - 8:51pm
DocMelonheadHell, I could use both Goth_Skunk and IronPatriot as an example of such behavior between the two.05/21/2015 - 8:43pm
Andrew EisenMock? Ridicule? No, we're talking about serious threats and abuse, not people being cheeky or mean. Big difference.05/21/2015 - 8:42pm
DocMelonheadIn fact I see both mocks and ridicule between both the GamerGate Supporters and GamerGate Critics.05/21/2015 - 8:41pm
 

Be Heard - Contact Your Politician