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.