620°

1UP:Hirai: PSN Losing Money, Should Turn a Profit Next Year

1UP:Speaking to Reuters Japan this week (via Hachimaki), Sony Computer Entertainment President Kaz Hirai described the PlayStation Network as "in the red" but believed that it would turn a profit during the next fiscal year.

cliffbo4864d ago (Edited 4864d ago )

so PSN in profit next year as well as the console. no wonder they just bought that factory back

@Ziro: PSN is free. Sony only make profit from PSN from things like HOME and virtual goods. of course they have PS+ now, but that won't be the only reason they are making profit. it's simple: Sony have over 60 million people on PSN and EVERY PS3/PSP owner has somewhere to store purchases

DFresh4864d ago

Sony has been making a profit on PS3 ever since the Slim was released in 2009.
PSN is just another goal to work on for Sony to grow profit.

Spenok4863d ago

Actually Sony didnt start posting profits on the PS3 until about febuary.

Koolno4863d ago (Edited 4863d ago )

Spenok, you obvisouly don't count millions of ps3 games, right ? :)

(and blurays !!)

Edit: Look at the Lolfanboyz, they are, like many times, trying to spin a good news, in bad news, sony is making a profit next years with a free service, and they only remember "in the red" ...denial/delusional much ? :)

Guitardr854863d ago

@KoolNo

Actually, I believe what Spenok was saying was that Sony didn't make a profit on the actual PS3 by itself. We all know that they make up for it with software, etc, but in terms of actual profit off of hardware, it WAS around February when they actually started selling in the black. I love the PS3 and couldn't live without it, I'm just trying to get facts straight!

FACTUAL evidence4863d ago

Well like i said, PSN could have waaaay more profit if they make an ID change feature like we requested like only 2 YEARS AGO!! 5-10$ for every name change, but Sony hates money.

Clarence4863d ago

Sony hates money? Are you crazy! How much do you think it cost to make the PS2. They are making a killing of those alone. Now the PS3 has been making them money ever since the slim was released. Also Sony just purchased the Toshiba Cell chip plant back. They will then terminate the partnership between NSM. Thats called cutting out the middle man. This will save them a lot of money, and will be very cost effective. This in turn will allow them to to produce the cell chip for a reduce rate. In turn it will cost less money to manufacture the PS3. Now they could do one or two things, maybe even both.

1. Continue selling the PS3 for 299.99, and continue to have a huge profit
2. Drop the price of the PS3 enough that it sell more because its cheaper, and still
yeild a profit.

Sony doesn't hate money. They showing you how they make money.

ReservoirDog3164863d ago (Edited 4863d ago )

Haha, Clarence, I think he was joking. He's just saying that charging for a name change would be an easy way to make money for Sony.

A joke.

You know, like SE hates money for not remaking FFVII? Of course they don't hate money, it's a joke.

TerrorCell4863d ago

Yeah Clarence and then quality will drop like every Sony product now

El_Colombiano4863d ago

$5 - $10 a change? This isn't XBL, get those gouging prices out of here.

nickjkl4863d ago

sony gives away to much stuff to turn a profit

MazzingerZ4863d ago (Edited 4863d ago )

Yeah everybody should love Activision or MSFT where customers are really just that, money

I really don't get it why people wants SONY games division to turn into one of those...I really don't...guess Playstation have never touched their heart with any game :(

+ Show (3) more repliesLast reply 4863d ago
jjohan354863d ago

I don't subscribe to PSN+ because I truly enjoy my free online playability. I always thought I was a scrooge when it comes to buying PSN games and DLC. But since it's the end of the year, I looked back at my expenses on PSN in 2010 alone and I can't believe I spent $200!

ForceCSW4863d ago

That's exactly what psn+ is for. It provides reduced prices on a lot of items on the playstation store. It might cost you $50 dollars a year but for someone like you it could save $100!

Gam3s4lif34863d ago

yet no one cares that sony makes a jackload from there lineup of exclusives ._., or ppl just forgot...

crackerjack73734863d ago

pretty sure that a lot of people care about exclusives

otherZinc4863d ago

Now, you SONY Super Fans should understand why XBOX LIVE is $50 a year. Also, LIVE has sales & cross game chat.

We all pay for goods & services, there are people working & someone has to pay for their hard work. This is how things work: people work, they get paid for their work.

DOMination4863d ago

60 million people on the PSN?

MazzingerZ4863d ago (Edited 4863d ago )

SONY games division must be headed by REAL gamers that own a PS3 themeselves, it doesn't matter if numbers were red or black, they have been producing new IPs and tons of 1st Party games since launch

It's at that level where we customers are really affected by those figures at corporate level and one must say that PS3 owners can give a crap about it! as a customer I don't notice a sh*t!

Thank god for the Playstation brand!

+ Show (4) more repliesLast reply 4863d ago
NYC_Gamer4864d ago

making profit with out charging 60 bucks a year

DigitalRaptor4864d ago

Still can't see why they're charging for XBL.

RedDead4864d ago

Sony will make a small profit, for about half of the 360's sold, MS make atleast 60 a year off them. MS makes large profit. Not to say they aren't cu*ts while doing it

candystop4864d ago

"Still can't see why they're charging for XBL."

You sound like Sony! duhhhhhhhhhhhhhhhhhhhhhhh

Killa Aaron4864d ago (Edited 4864d ago )

Because Microsoft knows they can get away with charging it's customers $60, then brag about how much they made off of those customers.

R2D24864d ago

"Still can't see why they're charging for XBL"

Why do people go to Star buck and pay $5 for a coffee when they can can get it at Burger King for $1.

or

Why do people buy Lambos when they can get a Civic for a hell of alot less.

or

Why do people pay $500 for a hooker when they can get it free form the wife.

MeanOldman4864d ago

"Why do people pay $500 for a hooker when they can get it free form the wife."

you dont understand marriage or havent been married long.

poindat4863d ago (Edited 4863d ago )

Talk about flawed logic. In each of the cases you mentioned there is a massive different in quality (not sure about the prostitutes vs. wife though haha) which warrants the premium price. In regards to PSN vs. XBL however, the massive difference in quality is simply not there and the price difference, as a result, is not warranted.

Vherostar4863d ago

"Still can't see why they're charging for XBL."
Because they can its that simple. We could argue all day if it's worth it or not but the fact is they came out first and forced people to play online and once they had that initial install base it was all easy street from there. They could increase XBL tomorrow to $100 a year and people would pay it.. Why? Because it's a better service?? No because you have no choice if you wan't to play half your game as nowadays theres more in the online part of games than offline. They got people in a corner and they holding all the cards. People can either drop it and go PS3 (which a lot don't want to as they actually enjoy Halo/Gears etc..) or pony up every year/month.

visualb4863d ago

you cant?

let me help:

maniacmayhem4863d ago

"Still can't see why they're charging for XBL."

Hmmm, let me say this as simple as possible...

Because it's a BUSINESS.

+ Show (6) more repliesLast reply 4863d ago
KotC4864d ago

Sony isn't making a profit yet still "in the red" Look ^ up. Did you guys just skip that part or does your mind just block it out?

8thnightvolley4863d ago (Edited 4863d ago )

they are using the new SDF 5000 glasses ...its some new sony tech it hides sony's failures from you in 3D!!!.

sick shyt man... i tried getting em but couldnt find my size.

Vherostar4863d ago

The fact they are still in the red is a failure?? How thick are you??

Anyways on topic it's making a profit but they are in the red purely because until all those millions of consoles were sold and PSN started to become a dominate horse like it is now (not comparing anything here or knocking XBL) they spent a lot of money hosting all those demos and actually building the service money they have to make up. It's not free to host an online service and until you actually get the service to a standard to make people buy the products on it they was gonna go downhill.

Also the fact they will be making a profit next year shows that they still won't probably be charging for it.

Redempteur4863d ago

or did you miss the PSN part of the title as well ?

it's not like the Gaming division as a whole is making profit since the PS3 slim was released , right ?

Persistantthug4863d ago

we won't know until their fiscal year is up....March 31, 2011.

That's just for the record.

Koolno4863d ago

Lol@poor fanboy, like knightvolley and others, the better games they can play ? comparisons of the games, npd estimation, and articles about sony's future profits (called "a failure", because they don't are able to count : games sold, consoles sold, blurays sold, etc)

+ Show (2) more repliesLast reply 4863d ago
Gamer1124863d ago

"making profit with out charging 60 bucks a year"

But aint thats what the psn plus subscribers doing, paying yearly to keep the stuff you brought?

lol i make it sound like a scam.

the_best_player4863d ago

you keep the things you buy/got discount on, but not the free games.

LiquifiedArt4863d ago

i love these xbox responses. Its a typical misinformed pre-teen.

Zir04864d ago

Must be due to PSN Plus why they are making a profit.

Quite shocking that they have been in the red all this time vs MS who makes $1bn a year on XBL.

Nitrowolf24864d ago

That's because XBL charges just to use the Online services

ComboBreaker4863d ago (Edited 4863d ago )

If Microsoft doesn't even make any profit from Xbox Live, then it would be sad.

Sony could easily make a billion a year from PSN too, if Sony charges us to play online. However, Sony isn't like that. And that, is a great thing for PS3 gamers.

Zir0, I don't know why you are so proud that Microsoft is charging you to play online just so Microsoft can make 1 billion profit a year. That's just sad. It's like you are proud that you got rip off.

4864d ago Replies(1)
acky14864d ago

It's a shame that sony don't make a lot of money from the ps3. I feel so bad for them. Hopefully they make a lot over the next few years.
_____________
Sony 'til I die

mrv3214864d ago

I guarantee Sony has been making money from PS3. SCEE probably lost some but that's due to the fact Blu-ray one the battle and Sony no doubt make a pretty penny from licensing.

dragonyght4864d ago

more like the Playstation Network because it cost money the maintain yet its free to users

coolstuff4864d ago

Here's how much profit/loss Sony, Microsoft and Nintendo have been making. This is from their own financial reports by the way.

http://neogaf.net/forum/sho...

Bigpappy4864d ago

That is a bit too general to show how much M$ is making from 360. This is why some investor were asking M$ to make Xbox a seperate company. The contribution or losses of the 360 are not shown in profit and loss statements. You have Kin and Zune tied in with 360. But even with those losses, the devision still is profitable because of 360. PS3 has has been making back some money since the slim and is also ofset by still good PS2 sales.

GodofSackboy4864d ago

They would take a bullet for us customers
____________
Sony 'til I die

numberonepain4864d ago

Gamers remember so trust me people will take everything into account when they make a purchase next gen. This generation should not end until they have truly drenched every last drop from the systems. Naughty Dogs next project should be to release a launch title on the next console whether it is the PSP2 or PS4. Sony should try and have more first party software at launch.

Anon19744864d ago (Edited 4863d ago )

Really, we have no idea how much Sony makes from the PS3, so it's a bit premature to say that they "don't make a lot of money from the PS3".
Back in August before the slim was launched, Sony confirmed that as a platform the PS3 had been profitable for some time. What we don't know is how profitable. The PS3 is only part of a larger division that handles many products, just like Microsoft's Entertainment Division that oversees the Xbox also covers things like phones, Office for the Mac, Zune, etc.

When the company's roll out their fiscal updates, they give us the division as a whole and don't break it down other then throwing investors key highlights. We know the PS3 is profitable because Sony flat out confirmed it was. With the 360, we actually don't know if it's profitable or not. The division turns a profit from time to time but we don't know what part of that, if any, is due to the Xbox itself. In fact, just about a year ago, analysts at Caris and Co commented that Microsoft was still losing money on the Xbox even though the division was turning a profit. It's very possible that that's the reason for the 360s - that the old consoles were simply not cost effective either due to their failure rates or due to contracts with the suppliers over the costs of making the 360. We saw Microsoft sever ties with one of the 360 makers a couple of years ago due to costs, and now we're seeing Microsoft and Motorola go head 2 head as Microsoft no longer wants to pay Motorola's fees for using their tech in the 360. This sounds like a product with some cost issues going on in the background, just like Caris and Co said.

My point is to make a comment like "it's a shame Sony doesn't make more on the PS3"....well, we really don't know the breakdown for either company when it comes to what they make off each console. The exception, of course, is Nintendo. Games are pretty much all they do so when they unveil their numbers we can see exactly what they're bringing in from the Wii, or the DSI. In that case, portable gaming, not the Wii, is what floats Nintendo's boat - but the Wii is certainly no slouch when it comes to bringing in cash.

+ Show (3) more repliesLast reply 4864d ago
mushroomwig4864d ago

I'm surprised they're not already making a profit considering the prices of the PS3 games that are available on the store. £19.99 for MAG? £31.99 for Prototype? Pfft. =/

redDevil874864d ago

They need to make the best offers on the store more "in your face".

I like the store but most of the time you can't see if there are any amazing offers because everything is hidden away.

In the EU store anyway.

mrv3214864d ago

I don't think Sony has much control over Activision, but Sony do get money from the sale.

flyingmunky4864d ago

Yeah certain games do seem pretty pricey considering what they are(I think I once saw a chess game for like 20 bucks).

I'm just surprised that the pricing on the video store hasn't come down yet. 4 dollars for a digital copy rental that expires in 24 hrs after you start it is too much with netflix and redbox around. Then again psn does get almost every major film when it actually releases, unlike netflix and redbox.

Vherostar4863d ago

I think once they are out the red and into the green they can start to make even better offers rather than relying on 3rd partys to make the best offers.

problemchild844863d ago

A profit is written in black not green

ForceCSW4863d ago

He was thinking in Christmas colors.

+ Show (1) more replyLast reply 4863d ago
Show all comments (136)
120°

Our Favorite Kaz Hirai Moments

Alex S. from Link-Cable writes: "what better wait to wish him well in his future endeavors than to recall our favorite moments from his time at Sony? That’s what we’re doing today in a special KOTRC that looks back at the man, the legend, the Kaz."

Read Full Story >>
link-cable.com
1765d ago Replies(1)
ApocalypseShadow1764d ago

My favorite moment is when he turned the Sony ship around resulting in almost the utter destruction of their opponent in every important metric you can come up with that shut the mouths of the opposition and the naysayers that Sony would not be in the driver's seat. Resulting in worthless metrics from other parties to cover up the truth.

My most favorite moment.

timotim1764d ago

He had some zingers for sure. Love that guy.

DillyDilly1764d ago

No Ridge Racer mentions

You guys suck

Bismarn1764d ago

I have a lot of favorite Kaz Hirai moments, but it's inappropriate to mock him at this retirement.

it's ridge racer

Show all comments (7)
690°

Former Sony CEO and PlayStation boss Kaz Hirai retires

Former Sony CEO and PlayStation boss Kaz Hirai has retired. He will remain a senior adviser for the company following 35 years of service.

Read Full Story >>
videogameschronicle.com
Eonjay1764d ago

Also hands down the best fake twitter account of all time.

jeremyj29131764d ago

But for real tho😂😂😂

bouzebbal1764d ago

He was an amazing exec..
His English was perfect, he excels at communicating.

hiredhelp1764d ago

He actually was... I no longer own playstation since start ps4 as retired back to PC but dam there was something about kaz I loved...

specialguest1764d ago (Edited 1764d ago )

The same with me. I owned the PS3 and retired back to PC during the start of the PS4.

Too me it felt like the end of an era for console gaming as a whole after the PS3 generation.

BLizardXD1764d ago (Edited 1764d ago )

In short it depends on how kaz made gaming more attractive to you. speaking purely from my perspective -

I considered Ken kutaragi as part of my A-team, next to Hayao Nakayama, Shigeru Miyamoto, followed by peter moore in the US. I particularly viewed Kaz Hirai as part of the catalyst for pushing games to be closer to movies in oder to be considered AAA.

a good thing you ask? yes and no, leading all the way to the future. instead of games being designed to be entertaining games are being pushed to meet hardware expectations. it sounded great at first but now it's buckling the industry unfortunately. which is why sony was a no show this E3. with more games needing to meet hardware expectations fewer games will be produced in a much longer development cycle.

it all depends though on how their gaming devision made games more attractive to you. we have moved in the direction of graphics mattering to not mattering back to mattering. and all of this is at the cost of games needing to be longer in development.

my two cents.

OB1Biker1764d ago

I don't know why you have so many disagrees. From many perspectives serious or funny or even with memes and parody, hes become a legend I would say.

zodiac9091764d ago

This is N4G mate, the community is a Sh*t show above all else...I got my account suspended for a month for saying Days Gone did not look too good in terms of graphics. This site is a joke, especially in terms of rules.

+ Show (1) more replyLast reply 1764d ago
1764d ago Replies(4)
Relientk771764d ago

Kaz is the man. Thank you for all you have done for Sony and gaming.

UnholyLight1763d ago

I'll never forget watching....RiiiiiIIIIIIDDDDGE EE RACCCERRRRRR

Neonridr1764d ago

he deserves to just kick back on a beach somewhere earning 20%.. Thank you for all you have done Kaz.

Bathyj1764d ago

Thank you for that reference.
That's a nice suit too. John Phillips. London.

I have 2 myself.

darthv721764d ago

But unlike Hans... Kaz may actually get to earn that 20%.

Imalwaysright1764d ago

I don't understand why you got so many disagrees.

Neonridr1764d ago

lol.. clearly we don't have as many Die Hard fans as I thought. I am glad to see some people got it though

2pacalypsenow1764d ago

Enjoy your retirement.

You've earned it.

Show all comments (88)
50°

The Analog Circle Podcast: Are We Headed Towards Another Game Crash?

In this weeks episode Kiaun will discuss Sony's State Of Play Event,Wolfenstein Young Bloods has a release date along with other details about the game,Starfield and Elders Scroll 6 will not be at E3 ,The Last Of Us Part 2 could release towards the end of the year,Monolith Soft could be working on the next Zelda game,the Sega Genesis Mini will come with 40 games. All these stories and more in episode 95.

Read Full Story >>
theanalogcirclepodcast.libsyn.com