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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.

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cliffbo2104d ago (Edited 2104d 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

DFresh2104d 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.

Spenok2104d ago

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

Koolno2104d ago (Edited 2104d 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 ? :)

Guitardr852104d 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 evidence2104d 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.

Clarence2104d 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.

ReservoirDog3162104d ago (Edited 2104d 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.

TerrorCell2104d ago

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

El_Colombiano2104d ago

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

nickjkl2104d ago

sony gives away to much stuff to turn a profit

MazzingerZ2104d ago (Edited 2104d 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 2104d ago
jjohan352104d 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!

ForceCSW2104d 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!

Gam3s4lif32104d ago

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

crackerjack73732104d ago

pretty sure that a lot of people care about exclusives

otherZinc2104d 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.

DOMination2104d ago

60 million people on the PSN?

MazzingerZ2104d ago (Edited 2104d 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 2104d ago
NYC_Gamer2104d ago

making profit with out charging 60 bucks a year

DigitalRaptor2104d ago

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

RedDead2104d 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

candystop2104d ago

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

You sound like Sony! duhhhhhhhhhhhhhhhhhhhhhhh

Killa Aaron2104d ago (Edited 2104d 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.

R2D22104d 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.

MeanOldman2104d 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.

poindat2104d ago (Edited 2104d 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.

Vherostar2104d 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.

visualb2104d ago

you cant?

let me help:

maniacmayhem2104d 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.

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KotC2104d 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?

8thnightvolley2104d ago (Edited 2104d 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.

Vherostar2104d 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.

Redempteur2104d 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 ?

Persistantthug2104d ago

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

That's just for the record.

Koolno2104d ago

[email protected] 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)

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Gamer1122104d 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_player2104d ago

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

LiquifiedArt2104d ago

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

Zir02104d 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.

Nitrowolf22104d ago

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

ComboBreaker2104d ago (Edited 2104d 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.

OttomanEmpire2104d ago SpamShowReplies(1)
acky12104d 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

mrv3212104d 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.

dragonyght2104d ago

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

coolstuff2104d 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...

Bigpappy2104d 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.

GodofSackboy2104d ago

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

numberonepain2104d 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.

Anon19742104d ago (Edited 2104d 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.

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mushroomwig2104d 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. =/

redDevil872104d 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.

mrv3212104d ago

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

flyingmunky2104d 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.

Vherostar2104d 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.

problemchild842104d ago

A profit is written in black not green

ForceCSW2104d ago

He was thinking in Christmas colors.

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