Sony to Sell PlayStation Vita at a Loss

Andriasang: Company expects to reach hardware profitability within three years.

[a_bro]

I expected so. lets just hope its not that bad of a loss.

Im glad though they are selling it at this price point. This opens doors to the mainstream, and the competition is going to feel it.

[blitz0623]

Just more proof Sony cares a lot about their customers

[JellyJelly]

Or that they know how to say what people like to hear. Makes you think you're getting more than what you payed for. And since there is no way for us, other than going by their word, to know if they are really doing it or not it's clever marketing.

@KiasuKiasiMan - They said this about the PS2, the PSP and the PS3 as well.

[ElementX]

I really don't see how charging less than cost is "caring" about customers. It's all business. They want to get their product into as many hands as they can. Then they laugh all the way to the bank with royalties and developer fees from each game sold.

[JMyers]

@ All above... it may not be caring about their customers, and there ARE ways of verifying this through accounting and corporate responsibility practices (Laws that govern how a business behaves towards the public)... In other words no company can make these claims without proving it behind the scenes in their financials.

At least we are getting value for money... that is what we want. And Sony gets the product in as many hands as possible. And not all hardware is sold this way... examples to the contrary include Apple, Nintendo and Microsoft all made profits at launch.

[Nitrowolf2]

I actually believe they are selling their 3DTV at a loss as well. This was Samsung strategy to sell at a loss the first few years so that in the future it'll be cheaper. Its a great strategy to set for the future, which is what Sony is trying to do. As mention by Agent-86 below, its like selling razor blades. The handle is the console and the Razors are the software/accessories. Companies can sell handles at a loss but everything is made up from the razors. Notice Sony doing that with the PS3?

[BISHOP-BRASIL]

"Just more proof Sony cares a lot about their customers"

Let's make it clear that it don't necessarily has do with caring about us. It's a business model, one that works for them and keep the costumer happy. Everyone wins.

They could as easily overprice their stuff and make a profit, but for how long they could keep it?

What you call caring, I call foresight. Some companies have it, some don't.

[Peppino7]

It seems they finally learned their lesson. The price of that tech alone is fantastic. If they can keep it from getting hacked like the psp then they have a great contender for the handheld market. I haven't heard one bad thing about it!

[Menech]

I dunno how this could be a bad thing as a consumer, am getting hardware valued at a higher price then what I paid for it.

That's win win, I could care less how Sony balances there books.

[shoddy]

last I check apple and MS would never ever give thier customers some slack on price.
In fact those company made %150 profit.

[davidmccue]

The reason they will sell the PSVita at a loss is to get as many out there as possible, that way they can make more money through sales of the PSP remakes, PSVita games along with other content. The more they sell the more money they will gain through software sales, they did the same with the Playstation 3. It has nothing to do with sony caring about there customers they are only doing it to make more profit in the long run. Sorry to break your bubble, all companys give with one hand and take away with another.

[ATiElite]

All brand new hardware is sold at a loss until the manufacturer can get the parts cheaper and make revisions to the system as this is a typical business practice in THIS industry.

Besides the money is in the software and the licensing fees. It took Sony almost 5 years before the PS3 was sold as profit and the Xbox 360 is making profit but it took a while to offset the initial R&D cost of the first Xbox.

now the Kinect on the other hand is Profit day one thanks to Microsoft removing the Kinects CPU and other features.

Feel free to disagree but I'm basing my info from Share Holder Reports.

[nolifeking]

How much of a loss is nintendo taking on the wii again? How about apple?

[xTruthx]

"All brand new hardware is sold at a loss"

LOL WHAT? Companies 95% of the time usually price their products way over what they are really worth.

[Agent-86]

Ati is mostly right, but there are exceptions. Mostly, it's like the razor/razor blade model or printer/printer cartridge model where you sell the initial purchase at a loss (the razor, printer or console) and make it up with the additional purchases the customer needs to continue using the product (the blades, cartridges, or games). Nintendo and Apple are exceptions. Nintendo is quirky and has always played by their own rules while Apple banks on it's products being chic and charging a premium.

[ATiElite]

Cause when you do you will see a capital "THIS" followed by industry meaning Video Game Industry. So don't bring up Apple which DOES NOT have a video game division.

Nintendo Wii initial Manufacturer cost was between $180 and $210 (around $80 now) but remember Best Buy, Wal-Mart, Toys R US etc were not paying Nintendo $180 per unit cause the stores have to make a profit when they sell them to you for $249.

Every heard of the term Wholesale vs. Retail? If not then take a business class.

[KiasuKiasiMan]

It remind me of the PS1. When Sony sold it at a loss to compete with the other console makers. Hopefully the end result pays off :)

[GusBricker]

Really? These are the same people who put out the 599 console.

I hope they lose their asses, because they deserve to.

If they did this with the PS3, maybe they'd still be in first place.

[Killman]

Gusbricker, WOW You sound like a prick.

[n4gisatroll]

Your dumb, Sony sold the ps3 at a huge loss, they claimed it would cost then around $1000 to make, and sold it for $600.

[GusBricker]

Do you own stock in Sony?

If so, I apologize.

If not, shut up...and if the PS3 cost over 1000 dollars, then Sony is dumber than I thought.

[TenSteps]

Yes it was easy to expect this from Sony it takes common sense.

Let's look at what you just said...

"These are the same people who put out the 599 console."

...and now what was the result of releasing the PS3 at 599? Public scrutiny. Remember PSPGo and it's price? Public Scrutiny.

If you didn't expect this or anything similar from Sony then you underestimate common sense and how if you make two highly criticized pricing decisions you'd learn from them.

[shoddy]

Where were you when bluray came out?
Bluray cost $1300 back then and I got mine(ps3) for $700.

Why would I complain with such a deal.
Damn haters this days. People give them good value and they still complain.

[GusBricker]

Wait, you bought a blu-ray player for 700 bucks(above the ridiculous retail) and you're calling me an idiot?

lol

Now I feel so much better about waiting until it was 300 bucks.

[wsoutlaw87]

i wasn't even paying attention to psv stuff because i would never spend 400 on a hand held when i have a ps3. After seeing in and seeing the 250$ price tag i am defiantly considering it.

[rabidpancakeburglar]

It's a strategy that worked with the ps3 so maybe it will work with the vita.

[a_bro]

Im sure the impact will be minimal as well.

[aia12]

360 was also sold at a loss. ms and sony always do that but for good reasons. nintendo on the other hand like to make profit from the start thats why they NEVER start bleeding edge look at wii u it uses 2008 graphics hardware(r700) with no usb 3 support and only 1.5 gb ram which isn't nearly enough for an 8th gen console. the wii u is a 7.5 gen console at BEST. if the leaked specs are true its only 5-6 times more powerful than ps3/360 which is NOT a generational leap because high end pcs are over 20 times more powerful than ps3/360 the only reason games don't look 20 times better is because console limitations are holding back developers and games sell better on console so they are forced to work with the outdated hardware.

[clrlite]

There is a difference between system memory and graphics(video) memory. Go price quality 1.5gb video cards. Just wanted to get that out there because way too many people on N4G confuse the two.

Also, I hope the loss for Sony isn't too substantial. I will be picking up the WiFi version day one and possibly preordering it.

Also, it is very unlikely that the new Wii console will have over 1GB of VIDEO memory.

[n4gisatroll]

Actually, it would be more far to say 2006 hardware, even though it's more or less a glorified gamecube. It was out before 2008 so it's no where near that years hardware.

Edit: oh sorry, your talking about wii u specs, that im not sure of.

[aia12]

@Apophis

lol good one.alot of people on this site are delusional(so I'm just trying to belong) haven't you noticed ? just look at the comments made on most 360 related articles. Its the name of the console that makes me dislike it so much. I bet Nintendo thought the name was brilliant.

[fatstarr]

i dont think the ps3 broke even yet

it took sony like 8 years for the ps2 to finally make a profit.

[rabidpancakeburglar]

The PS3 became profitable last march.

[FearNoAngel]

8 years? Do you know what 8 years is?

[gaden_malak]

2922 days

[skyblue14213]

@fatstarr-"it took sony like 8 years for the PS2 to finally make a profit. "

-Lol, what ?????

That better be a typo, even if you meant the ps3 it has only been out for 4-5 years( not 8 years ). On the other hand if you meant the ps2 you must on something(drugs or alcohol) because I bet sony made a profit off of the ps2 a few years after the console was released.

Either way your comment does not make sense unless you are trolling.

[fatstarr]

Maybe im mistaken 8 yeas was a typo but i remember an article way back likw 2009 saying sony just started profiting off of every ps2 unit sold. i know the ps3 just started making profit a while ago though

[Max_Dissatisfaction]

It may have become profitable (as in started to make a profit per hardware sold) but it has not yet covered its costs

[fatstarr]

@ max i think that was what i was tryin to say

[gta2800]

8 years...lulz

[beast242tru]

i know its no way they could price at 250 with all that technology cramed inside but sony will see great sales of this handheld

[negroguy]

Software sales will carry it through with the current line up and the 80+ games coming for it.

[Philaroni]

Ya I am not too worried. Looking at how good just the first wave of games are for the PSV just wait to see them a year or two from now. One question though is how much will games cost? I'd expect them to be a little higher then the PSP games.

[UP]

If piracy does not get out of hand this time they should be able to recoup their losses easily. Lol Japan should be more then enough.

[Burning_Finger]

Component parts gets cheaper every year. 1-3 years of loss is not bad considering the life span and long term possibility of Sony's device.

[cr33ping_death]

im not into hand held gaming ( thank you Sony for GOW ORIGINS) but me thinks my bro might like this as a gift :)

[MoDyDo]

You're bro is proud of you :)

[cr33ping_death]

he better be :) lol jk.

[MoDyDo]

hahahaha bub+

[snipermk0]

@ cr33ping_death

Can i be your brother? :|

[cr33ping_death]

ha ha..... mmmmm nah :)

[fatstarr]

How is this new sony always sells everything at a loss

ps1 ps2 psp ps3 psv

"Sony revealed that PSP has shipped 70 million units."
whats actual sales?

i give them credit though, competing with price is something they dont usually do but thats what nintendo gets for launching a system with a sony pricetag.

[GoldPS3]

Nooooo!!! I was hoping this don't happen. I figured Vita should be more than it is. It's sad Sony have to take a lose just to please they fans. Sony will succeed in the long run. They always do.

[D2K]

Other than the Wii I can't think of any new piece of hardware that doesn't retail at a loss. The Wii was the first console I heard of that made a profit off top of 50 dollars per system.

It's always been common knowledge that companies lose money on hardware, and make money on software. That is why third party support (or lack there of) can make or break a system. So this isn't news at all.

[Frak]

Coz that what Sony does, it loves the customer, its not like micro, still no blu ray and no innovation

[ElementX]

"still no blu ray"... do you expect MS to divide it's customer base by releasing a new media drive at this point? HD-DVD was for movies, not games. No innovation? How about XBL? Sure Sony had online gaming with PS2 however MS took it to the next level by integrating chat, voice, a friend system, and more on a home console.

I'm not saying MS is all high and mighty, but they do deserve some credit.

[nickblue216]

Well let's hope Nintendo doesn't come out with anouther crap gimic system. I believe this would damper the Vita sales alot. Vita Day 1 for me!

[TheComedian]

Loss at selling hardware when it is still fresh out of the production line is number 1 in the rulebook of gaming industrialism. All companies know this for a fact. Income is earned by software at first and when components and the production line as a whole for the hardware in question are optimized then income is earned through hardware. The only question that remains is why did someone felt the need to make an article about the expected. They forgot about common knowledge?

[Jonah_Reese]

People were saying that Sony should have sold the PS3 at a loss, so I guess they're testing the waters. If all goes well we could see Ps4 priced under it expected price.

[Jrome]

That's the thing...the PS3 was sold at a loss...but people still wanted it cheaper lol

[Jonah_Reese]

Yeah I should have mentioned that in my last comment.

edit: So basically I'll retract my last statement about Sony testing waters. Somewhat.

[iWishTifaWasReal]

if Vita is not coming in holiday 2011 here in Canada.

sorry Sony, i am not buying this.

you should at least release it in December. because thats the only time i can buy a PSV. the only time i have money. and the only time i get great stuff because of BOXING DAY!.

[Eric1993]

Sony is selling at a lost to attract a larger audience and then get a larger install base of users that have the PS Vita, larger install base means more money spent on games, this is where sony will be getting their profit for the time being until they get the production cost of the ps vita down and able to sell it as a profit.

I would say 3-4 yrs they could possibly sell at a profit, what do you guys think?

[F4sterTh4nFTL]

Nobody will buy this junk Vita but the assclown Sony Fanboys so they will not lose any money but will also make no money and Microsoft will buy Sony in the Future because Sony has decent 1st Party developers and Microsoft is very rich and will pay Sony's debts and save them from going bankrupt.

[Eric1993]

@FasterThanFTL lol at ur one bubble...troll

[SheenuTheLegend]

you are mad if sony continues to dominate whole gaming industry like the past and like now one day they can buy microsoft Lolz
n u will see Sony logo while booting ur PC with I21 processor

[MasterCornholio]

I was wondering on how they could price this the same as the 3DS. I remember reading an article in the past that stated that Sony would not sell this at a loss which is why i was never expecting the 250 Euro price tag. Sony wanted the Vita to compete with the 3DSs price point which is why they are selling it at a loss.

[Hozi89]

@CrackHeadGamer

I think you took too much crack dude.

All I wanna know is whats gonna happen to the rest of the world outside US, Europe, and Japan who doesn't have At&t as a carrier. How are we (the Caribbean) supposed to get 3g if we have no At&t?

And how long does the PSVita battery last?!!!

[NBT91]

When is Sony ever actually making profits off anything in regards to gaming?
But meh I do not really care, their revenue is no concern of mine as long as they are providing quality entertainment at a reasonable price.

[blackburn10]

*brings down flyswater* damn trolls. Anyway Sony is obviously taking a calculated risk here. Everyone acts, once again, as if they are Sony's accountants. How are you so sure that selling it as a loss isn't being done because they can afford it? As soon as anyone says loss you immediately assume that it is a desperate move to sell something. From what they saying Sony already has their long term goals with the VITA worked out. Do you really think they just said 1 to 3 years by pulling numbers out of their @$$es?

PS3 has been profitable for more then a year now while PSP and PS2 still bring them cash so not sure how they can't be profitable. It amazes me how Sony nailed the price of the VITA and we are getting all this tech for this price, while Sony takes a hit..........again and people still want to 'b***h and predict failure for it.

[bluegoblin]

when does it come out again? september?

[Malice-Flare]

it will be the extras and marketing that gives them the loss. there must be a packed-in memory card and cartridge in each box...

[kuroukage]

Sounds doubtful to me. Especially after all they money they just lost. I think people tend to forget how much things cost when you're mass producing something.