Top
150°

Sony's Hirai eyes PS3 profit as costs decline

Las Vegas, Jan 7 (Reuters) - Sony Computer Entertainment chief executive Kaz Hirai said late on Sunday at the Consumer Electronics Show that he hopes to turn a profit on the PlayStation 3 console business in the next fiscal year, fueled in part by falling costs for the parts used to make the device.

Great games, which draw consumers to buy the console, matched with declining component prices will hopefully lead to profitability for the PS3 and the company's gaming division overall, Hirai said.

(Reporting by Franklin Paul; Editing by Paul Bolding)

The story is too old to be commented.
The Killer3398d ago (Edited 3398d ago )

i think it will go fast the price of ps3, now that blue ray is next gen HD format and the main reason for the high price was blue ray so every thing will go cheaper by monthly bases, i can smell $300 ps3 by this year fall!

EDIT
@baker

look i know that!! but blue ray prices got decreased so much since ps3 launch i remember it was $1000 and now $300, also the CPU's and graphic cards got reduced a lot since ps3 launch, i have a feeling sony now not losing more than $100 per ps3 40GB model and even less for the 80GB!
and with the things happened in the HD world it will only make the blue ray component cheaper in faster rate than 2007, so they should be comfortable to make it $300 by the years end!

and wii is a gamecube 1.0001 with wii mote thats is so its obvious nintendo making profit from that cheap console!! i only wish they made it like gamecube 1.5 or something but not 1.000000001

WilliamRLBaker3398d ago

they make profit by lowering prices? last i checked thats not how it worked infact in the game industry you sell your systems at a loss to bolster user base so more games are sold which is where the true profit is made.

Nintendo is a company that continuely defies this trend by releaseing consoles that make them profit from day one and get profit from their games as well.

If sony lowers the price of the ps3 to 300 its not because of profit.

nix3398d ago (Edited 3398d ago )

it's not like tomorrow the whole world will come to an end and sony will never make a profit.

just imagine the prospect from Blu-ray itself... with blu-ray going to be next format. and that's only the "disc drive" making money. Cell structure is another thing they can sell.

sony has taken a huge risk.. and now it looks like it is paying off. you've heard the news, right?

DARKKNIGHT3398d ago

what wiliam baker fails to see is that the ps3 gains profits not only from games but bluray movies as well. All along, while the ps3 was sold at a bargain price(considering the next gen guts of the ps3) the blueray sales have been subsidizing the amount of money that sony loses on every ps3 console.

bluray domination allowed the price cuts. if hddvd was winning right now, sony would be in a heap of trouble. stuck with a 600 dollar ps3, bluray not taking off and billions invested in ps3 technology.

If you ask me, sony played the game very well thus far. they took a huge risk by betting the farm on the ps3, and now theyre beginning to bank in all the profits from both gaming and the hd format front.

PSP is doing well, bravias are doing well, ps3, bluray, oleds......plus the new services coming from sony are quite intersting.

All i know, is that its gonna be a great 2008. competition is gonna be at a all time high due to all the consoles exploiting their strengths.

ravinash3398d ago

Hmmm...maybe a PS3 cost cut is on the cards after all.

DARKKNIGHT3398d ago

maybe summer/fall.

i agree its coming though.

Gravitons3398d ago

well good luck to them, price cuts are good for everyone.

SaiyanFury3398d ago

Hirai-san is not a stupid man. Yes the hardware costs of the design are expensive, but the PS3 hardware is as PC hardware; given a bit of time the cost comes down. I remember last year I bought an Intel Pentium 4 3.2 GHz CPU for my PC for 325 dollars. This year I upgraded to a Core 2 Duo E6850 which is factory rated at 3.0 GHz for less than 300. The costs come down. When they do, companies profit.

mighty_douche3398d ago

Profit within 2 years? thats a bold statement and something M$ can only dream about, after their whole RROD problem the 360 will be lucky to ever turn a profit.

The PS3 was more a way to get Blu-Ray into the mainstream, if it works, Sony will be laughing all the way to the bank!

Show all comments (14)