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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TywinPosted:

Mentalist
Hitman1337 See now ps3 has paid online and so does the xbox....xbox wins now.


The PS3 doesn't have paid online, the PS4 will do, $5 a month + PS plus which gets you discounts and free games so it's all good.


Either way, the main argument that playstation fanboys use is now invalid.
I just want the consoles to come out so we can see which is best, once and for all.

TywinPosted:

I wonder how there would be a loss? That doesn't really make since to me. a console at $399 means they are probably making it for under $100 in some sweathshop in china.

NeuroPosted:

Maybe, they have a good amount of orders for the countries they are coming to

Corn_DogPosted:

Mentalist I didn't expect them to sell with loss at start.


that's cool to hear, you know that you are getting good stuff

Corn_DogPosted:

Why isn't it the 15th yet????? ugh

MentalistPosted:

Hitman1337 See now ps3 has paid online and so does the xbox....xbox wins now.


The PS3 doesn't have paid online, the PS4 will do, $5 a month + PS plus which gets you discounts and free games so it's all good.

MentalistPosted:

I didn't expect them to sell with loss at start.

Dr-PonyfilePosted:

@iOSPro I cannot see them not advertising for like another year or so, as they will strike deals with the TV companies I can see it now at least I will actually watch an advert that is not boring for instance I know The Simpsons in the UK is sponsored by the PS Vita.

iOSProPosted:

Pearity
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.


Yes. That is to get people to buy them so they buy more games. Eventually they will stop advertising, or barely advertise at all.

AlmightyHelixPosted:

-InsanelyAwesome-
Insanitize
Dr-Ponyfile
Novel
Hitman1337 See now ps3 has paid online and so does the xbox....xbox wins now.


I know the only thing that the PS3 had over the Xbox was that it offered free online (live) but now that that's gone they really have nothing over the Xbox.


To the first comment Xbox Does not win, your point is invalid, but to the second comment they will both generally be great consoles but there will always be a war between Sony and Microsoft doesen't really bother me I will eventually be getting both lol.


Xbox wins. Let's see, Sony has specs. What else? Oh yes, the rest are personal preferences. The network sucks and that's one thing that Xbox has over it.


What does the Xbox One have besides TV? Nothing. Xbox Wins haha pleaseeee.


I know right haha, it's literally just a PVR Now.


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