Sony PlayStation 3 Is Profitable Says Analyst

Sony's recent redressing of the PS3's production problems has made it profitable according to Richard Doherty, an analyst at the US research firm Envisioneering Group.

The analyst told Bloomberg that thanks to Sony's resolution of its production issues the PS3 has actually been profitable for several months, while he reckons that Microsoft loses money on every Xbox 360 it sells.

"Any price cut they try to make puts them more into the red,'' says Doherty of the 360.

[NewScratch]

not bad, took them about 8 months to get that small (haha) issue out of the way...

[ps3gogetitt]

A standalone bluray player cost more to manufacture?, yeah right well that's a joke....well like the articles author I will like to know where this analyst got this info from becuase not even sony will say something like this and they love to admit to this stuff. 360 will never be profitable so they keep selling games

[Blasphemy]

Blu Ray players(like all elextronics at first) are exspensive not because they cost so much to make but because manufactures have to make their money back from all the R&D they put into making them.

[closedxxx]

PS3- blu ray hardware, "super computer" Cell processor, Wi-fi, hard drive.
X360- Triple core processor...

That's it, and you're going ot tell me the PS3 is profitable, and the Xbox360 is not... I gotta call bullsh*t on this one.
It just doesn't make sense.

[SimmoUK]

Could be possible with the Blu-Ray factor, Sony was a big investor into the format and it's took off really well compared to HD DVD, weve already seen confirmation of price reductions to mass produce PS3's...

[pwnsause]

well thats a shocker for ya lol, how would the fanboy spin that?

[Rythrine]

Don't underestimate the fanboys here. Even if Sony is giving away the PS3 for free with 10 free games plus an 50" HDTV, they'll still find a way to say something negative about it lolz.

[kr9091]

At the dude above me: LMAO!!! Yea you said it brother! lol

[closedxxx]

If Rhythrine keeps it up he might be getting a little BJ action from kr9091... brother

[Rikimaru]

Seems u hit quite a few "Xbox fanboy" nerves with ur comment. This retard above me is already acting up. BJ? grow up

[XxZxX]

Archaic, Must be speaking from experience just like how you gave all microsoft's employee BJ. You need to teach your way to Sony Fan or else they will be just hi-fiing each other.

[Blankman]

don't know about it being profitable already but its not impossible. The ps3 alone cannot be profitable yet. They do however sell at a profit in europe and they managed to shave off about 100 dollars off that extra 200 and sumthin earlier in the yr. They could have also shaved off an additional 50. This combined with blu ray sales and maybe european ps3 sales maybe... just maybe they did it already

[Shaka2K6]

Sony is smarter then you.
nuff said.

[GoLeafsGo]

The 360's not turning a profit?
That makes sense for why MS hasn't had a pricedrop yet, not that they've needed it. Atleast they've got games to justify the purchase of their console, unlike some other company *rolls eyes*

Hopefully, with a lowered price point, sales WILL go up..so that developers start coming back to Sony.
I don't want my $600 going down the drain ='(

And to anyone suggesting to me to get a 360, don't worry. As soon as the RROD problem's fixed, I'll surely pick one up...probably after the holiday season =\

Good news on Sony's end, if them turning a profit frmo their console is indeed true.

[Da Ghostdog]

The first four letter describes them. A-N-A-L-yst!!! And everybody has one. It's the some ole' "bleep" someone post some news about an analyst. I bet you half of them mofo's don't know the color of the "B" button on the 360 and the "X" button on a PS3 controllers. But they're the first ones on the scene saying some crap about a system. It's the same song. I don't care for predictions. Just give me positive news and announce all the good games are coming out on time. Anyway, the race is getting a little fierce for Sony. This is what I like. There is no "dominate" console on the market now. Keep dropping prices for the 360 and PS3 to get to the level when Nintendo will have to do the same (And that may not happen no time soon w/ Nintendo).

[ArmrdChaos]

Kinda like a guitarist, because they are so good at talking out of their asses it is almost like they are playing an instrument. This invisible "Analist" was soooo sure of himself yet we have no name or link to the original article.

The fact of the matter is that Sony was $250 in the red for every PS3 not too long ago and now they are giving a $100 price cut for existing 60gb models. Not even Sony is going to somehow miraculously shave off $350 of manufacturing costs on those units...little alone $250 off of the new units. They will improve the bottom line but not negate it.

Sir...step away from the bong.

[akaFullMetal]

great for them if its true, but i think we need to see some real evidence if we want fanboys to not start roaring that its bull

[thatguy_0]

http://www.envisioneeringgr...

I guess Bloomberg was on a tight deadline that day.

[ReconHope]

can we have some evidence and not analyst. i want sony 2 profit so they can make more 20million dollar games.

[Figboy]

i mean:

1.) remove EE from the PS3. reduces cost
2.) remove 20gig SKU from production. now they only have to manufacture one motherboard instead of *TWO.
3.) Blu Ray is slowly becoming the HD standard across the world. prices naturally drop because of this (ie, the $499 stand alone Blu Ray player from Sony shipping soon)
4.) Blue laser diode production went from roughly $90 to $8 dollars a month or so ago, that alone drastically reduces production costs.
5.) the Cell chip went from the expensive 90nm process, to the cheaper 65nm process (MS has yet to do this). the RSX is going to drop from 90nm to 65nm in the next month also.

it seems highly probably that the PS3 is approaching breaking even status, even profitable status, as hard as it is to believe.

to me, that seems to be the benefit of using cutting-edge technology (the price to manufacture said cutting-edge technology seems to drop rapidly; ie, the $300 video card i bought early last year is now less than $100).

Sony is also making money from the PS2, PSP, Blu Ray player and movie sales, HDTV sales, PSN content sales, and their music and film industries (didn't Spider-Man 3 make, like, over $300 million domestic? not sure of the worldwide grosses).

considering that the PS3 can directly interact with each of the forms of entertainment i've noted above, it truly does seem like the console will be a lynchpin for Sony's various media services.

when people are better educated about this all in one box, sales will increase. the new price drop certainly doesn't hurt either.

i don't know if they're profitable or not, but i do believe that they're, at the least, breaking even.

[Armyless]

"Sony is no longer producing the PS3 at a loss."

[timmyp53]

but it is also probable that they finally just broke even ... who knows?

[XxZxX]

maybe blu-ray is super cheap and cell has better yield now and XDR cost is dropping as well ??? I know blu-ray diode is dirt cheap now dude to mass production, but Cell processor yield is holding them back too and XDR is cost them some money. If you take those big 3 away, you will get profitable PS3. Blu-ray diode low cost manufacturing was announced on march but what about those two? I believe the analyst is either got information on that.

[akaFullMetal]

thats true, guess we have to wait for an article for those things dropping as well beside the blu-ray diode

[DrRage77]

i can't believe some of the people on here actually think that this article is anywhere near accurate. first let me point out the most obvious thing....microsoft had already started making money on each 360 it sold roughly 6 months ago!!! that is a FACT!! there were several articles on it so anyone that wants to can check up on this. the 360 costs about $321 to manufacture (that was the number given 6 months ago) and so microsoft is making alomst $80 on every 360 sold. their entire gaming division is still in the red from R&D of the 360, but the console itself is making money. for this guy to write an article like this is making him look like a complete baboon.

as for sony making a profit on teh ps3.....ABSOLUTELY UNTRUE!! one of the most glaring mistakes in this assumption is that sony itself would have been screaming from teh treetops if they were somehow miraculously able to start mkaing money on each ps3 sold! every article that has been written about this subject has had qoutes from sony execs saying that they expect the ps3 to turn profits starting at the end of 2008 or ealry 2009.....so for them to start making money on the ps3 7 months after it is reelased is pure bs!!!

think about it, if the ps3 costs $600, and it cost about $850 to make, how were they all of a sudden able to eliminate $250-$300 in 7 months???

i am sure people are going to look at this article and somehow think it is based on actual evidence, and then start their stupid comments on how great sony is and that microsoft is unable to make moneuy on the 360, when it is actually the complete opposite situation right now. the ONLY REASON the ps3 dropped in price is because sales have been lackluster, at best, and sony needed to do something to try and boost sales before the fall. in the fall is when microsoft is going to see a surge in 360 sales due to the release of Halo3, and sony does not have an answer to that type of hype coming in teh fall

[achira]

the problem with your logic is, from where do you have the 850$ ? noone knows what the ps3 costs sony, surely not 850$.