Sony to sell PS4 at a loss


Sony (SNE) exec Masayasu Ito tells Eurogamer his company will initially lose money on PlayStation 4 hardware sales, but expects to turn after a profit on the console with the help of ($50/year) PlayStation Plus subscriptions and game royalties.

According to Ito, a PS Plus subscription and one launch title purchase is enough for Sony to make a profit on a console sale. Eurogamer says it has "heard from well-placed sources" Sony expects to lose $60 per PS4 sale.

Sony plans to sell the PS4 for $399 when it hits the U.S. in November, or $100 less than the Xbox One (comes with a bundled Kinect). Microsoft has said it will either break even or turn a profit on Xbox One sales from the start.

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Comments (6)
  • positivethoughts
    , contributor
    Comments (2064) | Send Message
     
    Why invest in a company that announces it is going to lose money on one of its main, high-demand items?
    20 Sep 2013, 06:50 PM Reply Like
  • King Rat
    , contributor
    Comments (1627) | Send Message
     
    You lose $60 but make it up in licensing and royalties.
    Within a year the price of components will drop and Sony will break even and get licensing and royalties. Within 2 years Sony will be making a $40 profit and getting licensing and royalties.

     

    Both Sony and Microsoft lost money on previous generation consoles when they first sold. At that time people blamed Nintendo for selling the Wii for too much because Nintendo made a profit on each model sold. How quickly people forget.
    20 Sep 2013, 11:15 PM Reply Like
  • a1shot
    , contributor
    Comments (320) | Send Message
     
    PS - this article summs up why PS4 is better than Xbox in numbers (and check game releases as well...the most sold games are best on PS)

     

    http://seekingalpha.co...
    21 Sep 2013, 04:21 AM Reply Like
  • a1shot
    , contributor
    Comments (320) | Send Message
     
    Its not good news, but given that subscription is still purchasable and Sony makes money from games as well, it is better to sell the console at a loss (to win the pricing war) to get more games out on it. Sony beaten Xbox in many ways, so hard MS had to adapt the console to match PS. At the end of the day it is still the numbers, and it may very well be that total Sony gain will be higher than MS gets from Xbox. Although i admit, i would prefer having 0 instead of -60 per console.
    21 Sep 2013, 04:22 AM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
     
    Trying to follow the xbox360 strategy.

     

    We'll see. It might work. It depends on how many people think, "The best games are on both consoles. Why pay $100 more?"
    23 Sep 2013, 02:50 AM Reply Like
  • naruto'sbiboveralls
    , contributor
    Comment (1) | Send Message
     
    I'll invest in Old Sony. Just because they're not complicit in helping the CIA and NSA Spy on ordinary citizens. Which Microsoft is unquestionably guilty of. The fact that Microsoft built in so many "Backdoors" for the Spyboys to snoop on ya gamers is disturbing as hell!

     

    If you support A George Orwell 1984 World. Go ahead and invest in Microsoft and buy their cruddy products. And yes, Both Windows 8 and their new game system are both garbage. Besides being intended to spy on you.

     

    If you don't want a George Orwell 1984 World invest in Sony and buy their higher quality products.
    2 Oct 2013, 04:21 PM Reply Like
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