Sony: "Unlike PS3, we are not planning a major loss to be incurred with the launch of PS4"

It sounds like PlayStation 4 has been and will be a more profitable piece of hardware for Sony than PlayStation 3.

[fsfsxii]

So they're going to sell the PS4 without a loss unlike the PS3 launch?? I heard the PS3 used to cost them 800$ to produce

[Sandmano]

I hope so.

[nukeitall]

Are you sure about that?

PS Vita had a similar strategy, and it didn't pan out too well did it. Relatively high specs, and relatively high price. Now PS Vita is viewed as a dead platform.

Especially with Sony including 8GBs of GDDR5. I suspect the PS4 will be very expensive.

[Ilovetheps5]

Nuke, I would disagree. They didn't have that high of a price for the Vita given hardware in the system. I think most people were pretty happy with the $250/$300 price tag. But, what I think hurt it were all the peripherals that were needed such as the expensive memory cards. Is it dead? I wouldn't say so. Is it selling less than Sony expected? It most likely is.

As for the PS4 price, I don't think GDDR5 is as expensive as you think it is. You have to remember that Sony will be buying bulk. I say the PS4 will carry a $400 or $450 price tag at launch. We'll find out.

[SilentNegotiator]

@Nukeitall

HANDHELDS bomb at $250 price tags. Consoles can be as expensive as $600 and do fine. Look at Ps3; it was $599 and it never even had a SINGLE month as poor as any of Wii U's last 4. With Ps4's more unified structure and Blu-ray not being very expensive anymore, I don't think costs will be anywhere near as horrible as ps3's were.

And I think it's clear that Sony expects *a* loss. Just not a "major loss"

[zeal0us]

Building that Cell processor and others parts in the PS3 probably was more expensive than what Sony paid Amd to build part for the PS4.

Regardless I hope the PS4 will be success for Sony. I hope the same for the Microsoft console and Nintendo as well.

[Hydrolex]

The reason why PS3 cost that much was mainly the Blu-ray and the Cell...

Cell was useless... well not useless, it wasn't console friendly, that's why it ain't in PS4

I think PS4 is going to be 400 500max

[Peppino7]

Launch price will be $499.

[Sykoticz]

@nukeitall "Especially with Sony including 8GBs of GDDR5. I suspect the PS4 will be very expensive."

8gb of GDDR5 isnt that expensive and the same with AMD they are alot cheaper then the likes of intel

[sikbeta]

They better think about a subscription service like MS does or it'll be a tough sell...

[Jdoki]

I think the key thing here is the word 'major'. That implies that they will take some loss, but not significant amounts like they did with the PS3.
Otherwise they would have said 'hardware profitable from Day 1', or 'No loss on launch hardware'.

Really impressed with Sony's approach to PS4. Everything looks very good so far.

[badz149]

dedicated bluray players are sold in the region of $1000. The PS3 cost a lot to make back then and even at $600 the loss was huge.

Now with the x86 based design, the PS4 is not only cheaper to make, it's cheaper to develop for too. I also think that the word "major" is the keyword here thus meaning that we might see a more affordable price from the get go which is more than what the PS4 need to succeed in this ever challenging market.

[torchic]

they didn't say anything about not selling at a loss. they just won't lose as much money as they did with the PS3.

that's why we're getting fun goodies like free headset bundled with every console, a more expensive (I'm assuming) controller, etc.

[Killzoner99]

@ nukeitall So Vita is a dead platform now? Lol , okay sure troll.

[Irishguy95]

It's not really, but like the WiiU...it's sorta on life support. That will change of course, along with the WiiU...when more well known games are released for it.

Eh as for the article, shoulda done that last gen too, they had a year on MS to get improved PC technology over them. There was no reason for the Cell it was just a huge unnecessary risk. I'm sure they realize that now and that 'games' are the only important factor when deciding to buy a console.

[shutUpAndTakeMyMoney]

@fsfsxii
"So they're going to sell the PS4 without a loss unlike the PS3 launch??"

Actually the title say major loss.

how much to make a custom tablet? Price might still be good.

[Tales RPG addict]

actually $840 per PS3.

[Jamaicangmr]

"Unlike PS3, we are not planning A MAJOR LOSS to be incurred with the launch of PS4,"

Read the article first.

[darx]

Nothing beats the Cell most powerful processor ever . Cant believe its not being used in PS4.

[mayberry]

good for Sony to do this, and good for gamers. I believe Sony will be even more generous with "indie" game developers that want to put games on the psn.

[Dark_Overlord]

It paid off in the long run though, Blu-Ray beat HD-DVD to become the HD Disc based format, Sony make royalties off every Blu-Ray sold :)

(Yes I know Sony isn't the only member of the BDA, but my comment is in reference to just them)

[Tultras]

Sony... is a member of the BDA if I remember.

They do earn royalties on it, but that didn't help them out of the extreme losses did it?

[ShotisT]

Not to sound like an ass @Tultras, just correcting you. @Dark_Overload said Sony is a member of the BDA, he just said that their not the only member.

[Tultras]

Oh, didn't see that part, no harm done.

I just gave my AS level physics exam today, and like any exam, you could imagine the flustered condition I am in.

[eferreira]

Considering blu ray tech is extremely cheap now and they aren't using the cell. I can see the ps4 not selling at a high price

[Zcarnut]

Exactly. Technology is one of the few things that tends to get cheaper over the years anyway.I remember my father buying our first VCR in the mid 80s.That bad boy cost $350.00 THEN.
Sony decision to go with more...off the rack components??? Is a good one.

[kneon]

$350?? I remember when they were more than double that price.

[Fil101]

I remember watching "The omen" on betamax lol.

[nunley33]

Yeah alot more than $350 and there was the top loader VCRS, It went right with the big console tv too lol.

[Zcarnut]

Yeah it was a sleek,modern,front loader with stereo sound.Hitachi with a silly remote that doubled as the face buttons on the unit.It was like the remote was a game cartridge.Rectangular in shape with awful ergonomics. My Grandparents had a top loader.Dad wasnt about to drop hundreds more for a VCR like they did a few year prior.I think even at the "low" price of $350, it was a struggle to open his wallet LOL.

[SirBradders]

I'm getting sick of all these articles now just sell me the damn thing already!!!!

[MilkMan]

This could be good news. I've been reading through the grapevine that there might be some kind of subscription model going on.

You pay more in the long run, but its easier on your pocket.

Not sure I like this model. Its like DLC on hardware.
(or cell phone plans)

[badz149]

Are you sure you didn't mistakenly take the PS4 for the next XBox? So far, only MS is rumored to continue with this subscription model you're talking about for thei next box.

[MilkMan]

Maybe. Not sure.

[Jek_Porkins]

It proves Sony was paying attention and listening, the PS4 sounds very appealing, they got developer input, and are doing their best to attract all different types of developers.

[gamertk421]

Can we infer that although cheaper to produce and buy than the PS3, that the price won't be as nice as many hoped? This tells me that they'll sell this for $499 and it will cost about 550 to make or so.

[torchic]

didn't the base PS3 cost $499 with another model for $599? cheaper would definitely be $450

I can almost certainly bet it will cost $429/$450

[gamertk421]

But they are not saying it will be cheaper, only that they won't price it with as high of a loss. They're not going to eat as much cost when it comes to getting these out to the public. Nor can they afford to this time.

[nunley33]

PS3 was more expensive cause it had alot of proprietary components and had new expensive things like BD drive. PS3 laid the ground work for the PS4 and it had to do alot of firsts,now some of those can be carried over cheaper now. It'll be nice like all their hardware have been and i would be more inclined to get the good model rather than the stripped down model to save a $100 dollars.

[SDF Repellent]

I think $499 at launch is the price for the cheapest SKU. Subscription based subsidizing pricing will be hard for Sony because most PS3 owners don't want to pay for online gaming.

[nunley33]

Plus isn't a hard sale for sony but i don't believe myself they'll go that route, MS will though for sure with one model at least.

[MikeMyers]

Profit:

"Sony's annual profit was 43 billion yen ($458 million) - roughly what was expected.

In the Game segment, sales were down 12.2 per cent and operating income down 94 per cent to $18 million, whoopsie daisy."

That profit (458 million) was also due to selling off assets, namely property. Good reaction to the PS4 will surely help moving forward.

Vita:

"combined PSP and Vita sales raised a whisker to 7 million from 6.8 million the year before. But a PS Vita price cut in Japan undermined the extra sales, bringing in less money for Sony."

"Sony believes a combined 5 million PSP and PS Vita units will be sold this financial year, which is considerably
down on this year - not a good sign for Vita."

Not good but hopefully the PS4 will bring new interest to Vita.

PS3:

"Combined PS3 and PS2 sales were down to 16.5 million from 18 million the year before"

"Sony expects PS3 to sell 10 million units this financial year - a figure I can confidently report because PS2 sales have been removed from the year-ahead forecast."

Expect that number to keep dropping per year but we will also see a spike when they have a price cut.

Either way it looks like Sony is looking to make a profit early on for the PS4 and all signs point to a positive reception.

[Bathyj]

From where Im standing PS4 looks like win win.

[hutness]

And where are you standing exactly? ;3

[Bathyj]

Happygamersville. Population, Me.

[yippiechicken]

Lol. Sounds like a great place to live! Can I move in next door? :)

[kevinsheeks]

Good the way gaming is going we better support sony it's like their the last real gaming console who still tries to cater to gamers

[TheBrit]

Symantec's but...

"It sounds like PlayStation 4 has been and will be a more profitable piece of hardware for Sony than PlayStation 3."

Something that has not launched and has not even been stuck inside a final casing cannot be classed as "has been a more profitable piece of hardware than the PS3"

[Bathyj]

Did you just try to say semantics?
Do you use Norton?

[TheBrit]

LOL your right, I should know better than to rely on the first choice presented by spell checker :)

[kwyjibo]

Sony can not possibly afford to launch a major console at a loss right now like they did with the PS3.

For the PS3, they ploughed a load of money into the Cell and into Blu-Ray. PS4 is largely off the shelf parts. This was obvious.

[DestinyHeroDoomlord]

So I don't have to get another job? ...

[ReubenPatrick]

Confident... I like that.

[FrigidDARKNESS]

Well Sony can't afford any major losses in the first three years of the ps4 expect Sony to start charging for on line game play for additional revenue streams.

[C-Thunder]

As much as you Xbox fanboys would love for Sony to charge for online, it isn't going to happen. There is no doubt that you'll need a PS+ subscription to get the most out of the online functionality of the PS4, but if you just want to play online, it will be free.

[Fishy Fingers]

Blu-Ray, Cell and various other factors would of made the PS3 a heavy investment, were as, with the disc format 'won' and 'off the shelf' components, they shouldn't have the same upfront development costs.

[Information Minister]

The picture in this article made me LOL. I don't know why but it's just so hilarious, so random.

[nunley33]

Would the picture imply the PS4 is that alien guy ( i forgot its name but good movie) the most ultimate perfect lifeform in the universe, untill it tries to destroy everything lol.

[Gekko36]

Unless this was said with tongue firmly wedged in cheek, we may be dealing with "Cretin of the year"

[KontryBoy706]

just release the console now SONY we don't need to wait until the end of the freaking year!

[Gekko36]

LOL "Freaking" what ever happened to "F**king". Probably a US thing. It's sweet, really!

Though, I'm pretty zen, so when they arrive they arrive.

CHILL

[o-Sunny-o]

Prometheus? *.*

[ajax17]

Live the Prometheus picture.

[ajax17]

*love

[KingKevo]

If I only knew how much it did cost Sony to implement things like the Cell chip (per console). That would be interesting. But I'm sure they'll never tell us about that and that's ok. But it's good to read that Sony is talking about it and that they are trying to make things differently with this gen. I think Sony did make a huge step forward in the last couple of years, since Kaz is the CEO.

[supremacy]

Well I simply believe that whatever the ps4 may make Sony bleed the ps3 profits are likely to cover for the most part. So we could be looking at Sony having a flat year during the 2014 period.

Also, some might disagree with me, but I also feel Sony will start charging for its online service, running Gaikai is going to costs alot and they will look for ways to pay for that through both ads and susbcription fees, PlayStation plus will be around but most likely at a higher premium than we are used to today.

Yoshida hinted at this already several times over, how they are looking at a tier based subscription service.

Also, the fact that its a platform being assembled with off the shelf parts and other components which gotten cheaper with age, the PlayStation 4 is set to become profitable a lot sooner than the ps3 did over the course of its 7 years on the market.

If I am right when all is set and done then the PlayStation 4 along with the mentioned susbcription model will become the companies profit machine. Just think, xbox live generates billions of dollars in revenue for Microsoft, so despite launching a platform at a loss, they technically really arent and I think with everything that Sony is doing to make psn as rebust if not superior in some areas and cases to xbox live is a clear indication they want a piece of that pie.

PlayStation plus I think serves as a great incentive for games on the edge, as a business model not so much, just reading some articles of developers saying that they shouldn't encourage gamers to think they can get games for free followed buy the just cause 2 guys stating they have yet to receive a single dime from PlayStation plus.

Sony is no different than any other Japanese company trying to turn its fortunes around in these trying times, so they are going to continue to trim and cut fat wherever they feel they must in order to become and hopefully remain profitable going forward.

So I expect them to address their tv business more so now than before, but now that PlayStation plays a major role in the companies strategy to recovery, they will introduce and manufacture the platform in many developing markets like India, Brazil and so forth.
So like I stated before I wouldnt be surprised if they began charging for their online service. And even as gamede on different sides, we have to be mature and understanding of this decision if they do end up going this route when is all set and done.

Simply because with the revenue this will potentially net Sony, they could afford to continue to fund all these studios and their tripple A projects while also facilitating the companies bottom line. I am also certain that come e3, we will hear more about this.

[TheRealHeisenberg]

Better be $300 USD or less at launch then.

[NumOnePS3FanBoy]

Dat image

[S2Killinit]

a big chunk of the 'loss' on the PS3 was due to the inclusion of the bluray disc. This time around SONY wont have to make that investment. They already have the disc market to themselves, and the Bluray is here to stay for a while so they can just ride their success for a while. Hope the money saved translates into more powerful machine.

[CoryHG]

Gt6

[Tundra]

The parts they're using aren't terribly expensive aside from a big GDDR5 RAM pool and blu-ray isn't nearly as expensive as it used to be. They should easily break even.

It'll probably be going for $400 retail.

[C0MPUT3R]

It will be so much cheaper to produce the PS4 it is not even funny.
.
The PS3 was an over engineered mess.
.
Lets just start with the APU 28nm bought off AMD vs. Producing and Manufacturing your own 90nm Cell Processor, and getting ripped off by Nvidia for the 90nm RSX GPU.
.
28nm 1 chip off the shelf = cheap
180nm 2 chips heavy R&D investment, Nvidia = expensive.
.
Blu-ray in 2013 = cheap
Blu-ray in 2006 = expensive
.
I could write a whole list of things that are going to be
cheaper, but suffice it to say: see Vita everyone thought
it was going to be expensive, but then it was announced the same price as the 3DS $249.99.
.
The PS4 will be $399.99, book it.

[InTheZoneAC]

it says they're not planning a major loss, meaning they'll probably take a hit early on, but for not as long and not as much as the ps3 did.

an initial loss is always expected, unless you're apple and charge over 3x what your product is worth to begin with.

[AKR]

Well I would hope they don't. If the PS4 causes Sony's gaming division anymore losses, they might have to shut down. PS4 looks to be like an awesome system - Just hope the price point is reasonable enough.

[Robotronfiend]

Whatever the launch price turns out to be, I hope it isn't too much more than a comparable PC in terms of gaming performance. I'll still probably get one, but I doubt it will be at launch - unless it launches with Disgaea 5.

[Tdmd]

So... they did planned a major loss to be incurred with the launch of PS3?

[annus]

The cell and blu-ray were both massive risks and were costing a fortune, the technology in the PS4 is nothing new, so of course it's going to be cheaper in relation to the PS3 launch.

[Picnic]

I hope and trust that the PS4 will provide memorable gaming moments like the PS2 and PS3 in particular have. But it's a bit silly to get overexcited about the PS4 itself. This is not N64 to Dreamcast technological jump that we are looking at and Sony have as much as admitted it. People should be wondering what talented indie or just generally quirky developers are going to do on it. That's an important part of what the Playstation brand has always been about.
Think about the people, not the machine.