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PlayStation 3 Finally Turning a Profit on Each Console Sold

Digital Trends: After years of losing money on each unit sold, a new graphics card will allow Sony to make a profit on every PlayStation 3 out the door.

The PlayStation 3's new motto is that "it only does everything." The gaming console also has a Blu-ray player, Web browser, and it even streams Netflix. Well, now Sony can add one more thing to the list of things the PS3 can do: It can make a profit.

Since the PS3's debut in November of 2006, every console been sold for a loss. With the move to a new cheaper and cooler RSX graphics card, the PS3 is finally showing a profit on each unit sold.

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ClownBelt2703d ago

Why should he remove the question mark? The article don't have a valid proof yet about Sony earning profit from PS3.

Simon_Brezhnev2703d ago

wow @ PP commenting on every site with PS3 related news

RememberThe3572703d ago

looks like I need to start hanging out in the pending section again...

Nicholas Cage2703d ago (Edited 2703d ago )

take my advice, buy a ps3 so you can acctually enjoy things called GAME OF THE YEARS. yea there cool. ;) and yes they have been making a prophet for some time now.

Anon19742703d ago (Edited 2703d ago )

"I think the better indicator is to look at the business as a whole platform, to ask: are you profitable in terms of the hardware, software and peripherals. And the answer to that question is yes on a gross profit level since the last fiscal year."

That was Kaz from last summer, stating that the PS3 platform has been profitable for some time. Even if they aren't making money on the hardware, does it really matter if they're making money on a product overall?

Edit below: I realize that Sony spent quite a chunk of change to position the PS3 out there. I was simply pointing out that Sony has flat out said that the PS3 makes them money, even though it's not on the hardware itself. I'm 100% in agreement with your post though.

-Alpha2703d ago (Edited 2703d ago )

@Darkside

That is carefully crafted PR Talk. It's obvious Sony has an income from games, PSN, etc. but it's lost a LOT on hardware sales simply because of expensive components. That is a fact.

People love to say that Sony will win because they will sell the most, but sales really don't matter if you are losing money on the console. Selling less and gaining more > Selling more and losing more.

The good thing with selling less and losing money off of hardware is that you can make money back through software sales.

The only company this gen to have successfully sold more consoles while maintaining hardware profits is Nintendo and they will continue to make the most this generation, thus ensuring their victory this gen.

Last I heard Sony was reaching break even and if this is true then it's great news for Sony. They have worked hard to regain themselves.

RememberThe3572703d ago

Sony has had such a hard time making money on the PS3 hardware that it just seems like BS. But I agree with Alpha, if this is true then it is great news for Sony.

DelbertGrady2703d ago

Here's the source.

http://www.engadget.com/201...

It ends with "Those changes combined with fewer adjoining chips around the shrunken RSX should make the console cheaper to build which is good news to Sony's sagging bottom line."

Should make the console cheaper.

Also says "The loss-leading console once estimated to cost Sony more than $800 per (losing between $241 and $307 per console sold back in 2006)"

Anyone who believes in this is very naive. No company would greenlight a product that doesn't turn profit in its first 4 years. They calculate everything prior to the production phase. Price drops of components included.

Great PR talk though. Makes it seem like Sony are giving away their console for free and making great sacrifices for the consumer.

commodore642703d ago (Edited 2703d ago )

Yeah it is good news that the ps3 is reducing its cost.
It is no secret that Sony has reduced the ps3 price by 50% since launch, so one would hope that cost reductions have kept pace with the falling revenue per unit sold.

So far, Sony has lost $4.7billion on its ps3 life cycle.
http://www.vg247.com/2009/1...
To put that in perspective, if we compare the previous generation xbox1 losses, we are forced to conclude that the ps3 has lost even more money than the xbox1 did, for the same period of time since release. That really blows my mind!

One would hope that, in years to come, the effect of increased game and bluray movie sales will help offset this gargantuan loss.
But who is to say whether this will be enough?

I am also wondering what will happen when MS releases Natal with rumoured price-drop and sku slim revision.
No doubt such a move would re-invigorate 360 sales, and none too soon.

In such an event, what will Sony do to remain competitive?
Will Sony be able to match another pricedrop so soon?

Neo6042702d ago

ps3 is teh doom!!!!/s

+ Show (8) more repliesLast reply 2702d ago
red2tango2703d ago

Sony has not said that they are turning a profit. This site has no proof in terms of pricing other than a resized PS3. Probably it will be cheaper for Sony, but this article provides no proof.

pxpxp2703d ago

i wont believe until i see reliable proof. But im confident sony will turn a profit with the increase of sales.

2703d ago Replies(6)
Dellis2703d ago (Edited 2703d ago )

They better, they stripped down the Original PS3 vision into
that cheap looking Slim crap they call a PS3 now.

Its time to make PS3 199.99 to sell that Wii ripoff "PS MOVE",
soccer moms/casuals are not going to get that for 299.99

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