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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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cliffbo2434d ago (Edited 2434d 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

DFresh2434d 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.

Spenok2434d ago

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

Koolno2434d ago (Edited 2434d 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 ? :)

Guitardr852434d 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 evidence2434d 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.

Clarence2434d 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.

ReservoirDog3162434d ago (Edited 2434d 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.

TerrorCell2434d ago

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

El_Colombiano2434d ago

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

nickjkl2434d ago

sony gives away to much stuff to turn a profit

MazzingerZ2434d ago (Edited 2434d 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 2434d ago
jjohan352434d 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!

ForceCSW2434d 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!

Gam3s4lif32434d ago

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

crackerjack73732434d ago

pretty sure that a lot of people care about exclusives

otherZinc2434d 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.

DOMination2434d ago

60 million people on the PSN?

MazzingerZ2434d ago (Edited 2434d 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 2434d ago
NYC_Gamer2434d ago

making profit with out charging 60 bucks a year

DigitalRaptor2434d ago

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

RedDead2434d 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

candystop2434d ago

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

You sound like Sony! duhhhhhhhhhhhhhhhhhhhhhhh

Killa Aaron2434d ago (Edited 2434d 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.

R2D22434d 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.

MeanOldman2434d 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.

poindat2434d ago (Edited 2434d 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.

Vherostar2434d 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.

visualb2434d ago

you cant?

let me help:

maniacmayhem2434d 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 2434d ago
KotC2434d 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?

8thnightvolley2434d ago (Edited 2434d 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.