PS4 hardware loss will be recovered at launch

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PlayStation 4 is expected to make a loss at launch, Sony has confirmed, but the company hopes to regain some of the outgoings via the new paid PS Plus requirement for online gaming. Launch titles are also hoped to stem the loss.

The quote comes from Sony Japan executive Masayasu Ito, who explained the company’s hopes to Eurogamer. The site also cites unnamed sources who suggest that there will be a $60 loss for each $399 PS4 sold, however, Ito denied the figure when asked if it was accurate.

He could not confirm if more than one launch title would have to be bought to negate the loss, but hoped that each customers’s initial PS4 spend would recoup the sum. He stressed that regardless, PS4 is poised to make a profit quicker than PS3, echoing earlier comments from Sony’s Andrew House.

Posted:
Related Forum: PlayStation Forum

Source: http://www.vg247.com/2013/09/20/ps4-hardware-loss-will-be-recovered-at-launch-via-ps-plus-subs-sony-hopes/

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Corn_DogPosted:

They'll be more than fine, I'll do my part to help

Dr-PonyfilePosted:

iOSPro
Treyarched
-Amp I really didn't expect them to make a loss at launch, considering all the pre-orders.


If the cost of getting them manufactured and shipped to retailers costs more than what they sell them for then they will make a loss no matter how many they sell


I don't think that's it. They're making a relative loss based on how many consoles they expect to sell at $60 a console. Not only do manufacturing costs and shipping costs come in to play, so do advertising costs. Later, after sony has made a profit, they can afford to bring the price of the console down.

tl;dr
Advertising makes cost larger, when they stop advertising, they will make a profit per console, or at least break even.


Advertising in todays markets are extortionate as hell, when the day looms closer for the consoles launch there will be adverts everywhere especially at christmas I watch quite a bit of TV and there have been loads of Xbox One and PS4 TV Commercials saying pre order yours now blah blah blah.

iOSProPosted:

Treyarched
-Amp I really didn't expect them to make a loss at launch, considering all the pre-orders.


If the cost of getting them manufactured and shipped to retailers costs more than what they sell them for then they will make a loss no matter how many they sell


I don't think that's it. They're making a relative loss based on how many consoles they expect to sell at $60 a console. Not only do manufacturing costs and shipping costs come in to play, so do advertising costs. Later, after sony has made a profit, they can afford to bring the price of the console down.

tl;dr
Advertising makes cost larger, when they stop advertising, they will make a profit per console, or at least break even.

TitanFallPosted:

TTG_Velocity
Alberici
Sporting
WWF
Arni how an xbox onw costs 600 dollars in Australia and a ps4 costs 549 dollars and i get kinect with my xbox


PS4 Is 100$ cheaper than the xbox one. Kinect is pointless unless you play games with your family.


You can give it commands and it will do them


Ya but we are not all lazy and we can turn on our own xbox and switch tv chnnels and for the fact they dont let you preorder it with out the gaynect is showing all they want is money money money and dont give 2 F's about you.


You're retarded. The reason they are forcing you to purchase the Xbox with the kinect is to allow developers to utilize the technology. Developers would love to make games for the kinect but since people don't want to buy the kinect or even try it, they are forced to not make anything for it. Microsoft is trying to get idiots like you to try something new and to give developers a new standpoint in developing games for them.


Wow... i never knew there were people like you thank god there is :D so many silly people who don't know shit out there :c

Dr-PonyfilePosted:

Gossip They will eventually make it up from games and such.


This is the same thing that happened with the PS3 at launch they made a loss but both companies Sony and Microsoft will will a lot more back on the game royalties etc, Contracts with other developers it is a sound investment as they say.

GossipPosted:

They will eventually make it up from games and such.

SIKSPosted:

That's a ton of money considering that they're selling millions of consoles when it comes out.

HextraPosted:

They should make something like phoneblocks but with consoles, so its affordable and efficient. And before anyone says pc I mean just gaming.

Evo8Posted:

I think both consoles will still bring in good money for both companies.

TreyarchedPosted:

-Amp I really didn't expect them to make a loss at launch, considering all the pre-orders.


If the cost of getting them manufactured and shipped to retailers costs more than what they sell them for then they will make a loss no matter how many they sell


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