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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Papa MidnightIt's not bad so far, but I am honestly not sure what to make of it (or where it's going for that matter)07/28/2014 - 9:44pm
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MaskedPixelanteNah, I'm fine purple monkey dishwasher.07/28/2014 - 4:05pm
Sleaker@MP - I hope you didn't suffer a loss of your mental faculties attempting that.07/28/2014 - 3:48pm
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ZenMatthew, the 3DS already has GBA games in the form of the ambassador tittles. And I an just as curious about them not releasing them on there like they did the NES ones. I do like them on the Wii U as well, but seems weird. And where are the N64 games?07/28/2014 - 10:40am
james_fudgeNo. They already cut the price. Unless they release a new version that has a higher price point.07/28/2014 - 10:19am
E. Zachary KnightMatthew, It most likely is. The question is whether Nintendo wants to do it.07/28/2014 - 10:12am
Matthew WilsonI am sure the 3ds im more then powerful enough to emulate a GBA game.07/28/2014 - 9:54am
Sleaker@IanC - while the processor is effectively the same or very similar, the issue is how they setup the peripheral hardware. It would probably require creating some kind of emulation for the 3DS to handle interfacing with the audio and input methods for GBA07/28/2014 - 9:30am
Sleaker@EZK - hmmm, that makes sense. I could have sworn I had played GB/GBC games on it too though (emud of course)07/28/2014 - 9:23am
E. Zachary KnightSleaker, the DS has a built in GBA chipset in the system. That is why it played GBA games. The GBA had a seperate chipset for GB and GBColor games. The DS did not have that GB/GBC chipset and that is why the DS could not play GB and GBC games.07/28/2014 - 7:25am
IanCI dont think Nintendo ever gave reason why GBA games a reason why GBA games aren't on the 3DS eshop. The 3DS uses chips that are backwards compatable with the GBA ob GBA processor, after all.07/28/2014 - 6:46am
Sleakerhmmm that's odd I could play GBA games natively in my original DS.07/28/2014 - 1:39am
Matthew Wilsonbasically "we do not want to put these games on a system more then 10 people own" just joking07/27/2014 - 8:13pm
MaskedPixelanteSomething, something, the 3DS can't properly emulate GBA games and it was a massive struggle to get the ambassador games running properly.07/27/2014 - 8:06pm
Andrew EisenIdeally, you'd be able to play such games on either platform but until that time, I think Nintendo's using the exclusivity in an attempt to further drive Wii U sales.07/27/2014 - 7:21pm
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