Sony Not Going to Take a 'Major Loss' with the PlayStation 4 - News

by William D'Angelo , posted on 10 May 2013 / 5,627 Views

Sony chief financial officer Masaru Kato, spoke at the companies earnings conference call which was attended by GamesIndustry International. He stated that Sony has learned from its mistakes with the PlayStation 3. This time around Sony is not planning on taking a "major loss" when the PlayStation 4 launched later this year.

Despite launching at $599 in the US, the PlayStation 3 still took a huge loss. This was due to the Cell chip, which was developed in-house, as well as including a Blu-Ray drive. This time around Sony is basing the CPU on technology that already exists.

"Unlike PS3, we are not planning a major loss to be incurred with the launch of PS4," said Kato. "At the time we developed PS3, we made a lot of in-house investments to develop the Cell chip. Development of the chip saw the silicon processing and all the facilities [as internal investments]."

"This time, we have a team working on chip development, but we already have existing technology to incorporate. All the facilities will now be invested by our partners, other foundries, so we don't have to make all the investment in-house."

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binary solo (on 10 May 2013)

So not taking a major loss, probably means they'll take a minor loss. Let's hope they only need to sell one game or one peripheral for them to break even.

Raze (on 11 May 2013)

I still cant see them releasing it for less than $450, given the GDDR5 and the graphics processor, even if the Cell is now cheaper to manufacture.

Devil_Survivor (on 12 May 2013)

But Sony isn't using the Cell anymore, they are using a more PC like cpu.

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MARCUSDJACKSON (on 14 May 2013)

well here's hoping it's a minor loss

Cyborg13B (on 13 May 2013)

That's must smarter. Should've done that last generation - took them 4 years to break even on Playstation 3 - ridiculous. No wonder it took them 7 years to launch the next Playstation.

Dark_Lord_2008 (on 11 May 2013)

Disappointing that Sony will not take a huge loss to build sales momentum and gain much needed early market share and jump on the competition.