Sony: PS4 Losses Will Be Far Lower than the PS3 at Launch - News
by William D'Angelo , posted on 12 August 2013 / 7,763 Views
Sony lost $3.5 billion on the PlayStation 3 in its first couple of years on the market and is making sure to not have the same problem when the PlayStation 4 launches later this year. Sony Computer Entertainment CEO Andrew House in an investor call, attended by Bloomberg, calmed down worried investors that the losses will be significantly lower with the PlayStation 4.
“We will not generate anything like the losses we did for the PlayStation 3,” said Andrew House, CEO of Sony Computer Entertainment. Also Sony CFO Masaru Kato assured that due to being based on a PC architecture the amount of money invested in PlayStation 4 is much less than the PlayStation 3. Sony invested a lot of money on the PlayStation 3's Cell processor, which is not a factor this time around.
Sony is expecting a loss in its game division, mainly due to the changing currency exchange rate. The dollar is expected to increase in value by 10 percent by March, 2014. This would change the difference between the yen to the dollar from 96.6 yen to $1 today, to 106 yen to $1 my March. The parts and production for the PlayStation 4 is paid in dollars which will hurt Sony's bottom line.
"It’s going to be tough for Sony’s game business this fiscal year if the yen continues to get weaker," said Hideki Yasuda, an analyst at Ace Research Institute in Tokyo. "Selling fewer PS4s this fiscal year would mess up its plan for the coming five years."
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Poor Sony, they do everything right, and still get boned, what gives? Well, I am buying tons of digital games on PSN, also at retailer: Beyond, GTA V and South Park on the PS3, also, whatever horror game that hits the console. Also, I will buy a PS4 ate the brazillian launch. I am doing my part to keep the Playstation dream alive.
Bad Luck Sony XD
Hope things turn out well for them, and hopefully they'll have notable profits this time around
Unfortunately you can't please everyone. Sony pleases consumers by providing relatively powerful hardware at a reasonable price, and displeases their shareholders by taking losses. There's a reason people love Sony but their behaviour is self destructive from a business perspective.
At least this time round it doesn't seem like they've got their head in the cloud...s
Kinda hoping for a bit of a bloody console war this gen, last one was a bit tame, Trettons' E3 conference was mostly about how... "it's on!"
They may be at first, but just like with the PS3 the system did well in the long run.
The exchange rate more than anything is what will be responsible for losses more than anything else this time around. But, that is something that is a part of the business that must be taken into account, handicap or no.
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I bloody well hope so :P
