Hirai says Sony will lose money on every PS3 Slim sold
- Posted August 25th, 2009 at 09:51 EDT by Mike Harradence
- 20 Comments
Sony Computer Entertainment Inc. (SCEI) head honcho Kazuo Hirai has revealed that the hardware manufacturer will make a loss on every PlayStation 3 Slim unit it shifts at retail.
Asked whether or not the company would make a loss on the machine as with the original model, Hirai told The Times Online: "If you're just talking about the hardware alone, the quick answer is yes."
Unveiled at GamesCom last Tuesday, the revamped console is pencilled in for release during the first week of September for the reduced price of $299 USD/299 EUR. PS3 Slim includes a 120GB hard drive and is approximately 33% smaller than the ‘fat’ version.
Hirai added: "That makes good headlines, but I don't actually know that that's the true nature of the business that we're all in, whether it's PlayStation, Xbox or the Wii. I think the better indicator is to look at the business as a whole platform, to ask: are you profitable in terms of the hardware, software and peripherals. And the answer to that question is yes on a gross profit level since the last fiscal year.”
The executive also stated empathically that PlayStation 2 was the first console to introduce videogames to mass-market appeal, despite credit in recent years falling in Nintendo’s lap.
"The most successful console is still the PS2 and it's still going strong. I think that's the console that really broke the barrier from videogames being just for videogamers into more of a mass market on a global basis,” he said.
"Nintendo's obviously done a great job in following that mass acceptance."
- 5:00am EDT - August 25th, 2009
They said the same with all versions of it, what's new there?
- 5:02am EDT - August 25th, 2009
I thought the point of the slim was a hardware revision so they wouldn't lose money on it anymore?
- 5:17am EDT - August 25th, 2009
"That makes good headlines, but I don't actually know that that's the true nature of the business that we're all in, whether it's PlayStation, Xbox or the Wii."
The journalist added - "yes, you're right, that does make for a quick headline, thank you - I hadn't thought of one until you said that".
- 5:37am EDT - August 25th, 2009
hmm well cost r down like 70% rnt they so i wonder how much these r costing to produce? either ways they will still probably drop more as time goes on but atleast consumers are getting a good product for a good price
- 5:41am EDT - August 25th, 2009
you sell consoles at a loss then make it up in the software department, that's how it goes. The reason why they took so long to drop the price is because it was a lot of money to produce in the first place so when it launched they lost money on the console despite the high price tag, they waited on the price drop to make up some of those deficits before dropping the price again
- 5:52am EDT - August 25th, 2009
I thought consoles were always sold at a loss. Probably the reason Microsoft has so many peripherals for the 360 is to make up for that loss. Makes sense.
- 7:09am EDT - August 25th, 2009
Not that I'm into using dance mats and such like peripherals on my ps3, but I do think its really stupid of Sony not to bring out such peripherals when they launched the PS3. There used to be loads of dance games and others games that used a camera for the PS2 which made the console appeal to a wider audience. The only decent game that uses the current PS3 Eye Camera is 'The Eye of Judgement' - those other mini games off the Playstation Store are pretty naff. Lets hope this new Wii Style controller that Sony's developing is gonna do the business!
- 8:04am EDT - August 25th, 2009
- 8:15am EDT - August 25th, 2009
its not a big deal, because you know every ps3 slim sold = 1 ps3 game bought (a leas) so right off the bat that game makes up for it,
its not like retail stores who have a small percentage of margin to profit.
- 8:41am EDT - August 25th, 2009
Pssst I dont care how much they make off it, as long as I got my console and it does what it says then im all happy :), their costs of development does not effect me or any other PS3 owner at all one bit so i dont see why people get some mixed up with costs and sale numbers but whatever
- 8:43am EDT - August 25th, 2009
They had JUST gotten to the point where eac regular fat PS3 wasnt lossing them any money,so of course yout going to loose money on a completely new build, you have to retool factories to deal with building the new units, and they just dropped the price 100 bucks after telling you all a million times that they still neeeded to lower production costs. the blu ray drive will be 50 dollars cheaper to produce but that's not until NEXT YEAR, so yes they are still lossingmoney, now is this a surprise to any of you???
No one even stops to think that Brand X has been loosing money on their system since the first one just because they never sell it for what it costs, they just eat the loss so they can shove it down our thoats with a side of RROD.
- 9:45am EDT - August 25th, 2009
Well SCEI is a company and all companies big or small their primary goal is to make profits,if your company is not making profits your not making revenue and if your making revenue sooner or later your company will have to shut down production.So why would anyone make a product that their going to lose a profit out of,it quite frankly doesn't make much bussiness sense or the dollars in this case. Furthermore if it wasn't for Nintendo you won't have a video game industry at all. Nintendo save the gaming industry in the mid to late 80s and NO one and I mean NO one can argue it didn't. I don't currently own a Nintendo Wii by the way, I have a Xbox 360 and a 'fat' PS3. I am planning on getting the PSgo and the PS3 slim late autumn or early winter.
- 10:28am EDT - August 25th, 2009
Every console loses money its the games that make the profits.
- 2:16pm EDT - August 25th, 2009
Hirai is such a dumb liar. I swear I read that when the slim got made, they were able to afford to drop the pice to $299. With that being said, the key word is afford, so they are obviously making a profit. Maybe sony should find someone better to speak on their behalf. This guy is a complete tweeter.
- 2:25pm EDT - August 25th, 2009
lol anyone else notice the Release Date under the Related Information column on the right?
- 4:33pm EDT - August 25th, 2009
Many of you know that I have not been a happy PS3 owner, mostly because the games have been far and few between BUT here are my feelings over the next year. I have even posted this on the Team Xbox site:
For all the defending I've done of the 360 over the years (and the Xbox before that) I think PS3 is positioned for some huge things.
Xbox Live Gold - $49.99
Playstation Network - Free
Xbox 360 - DVD
PS3 - Blu Ray
Xbox 360 - Loud and Bulky
PS3 - Slim and Silent
Xbox 360 - Red Ring of Death (I'm on my third)
PS3 - No Ring of Death
Xbox Elite 120GB - $299.99
PS3 120GB - $299.99
Don't get me wrong, an exclusive like Mass Effect 2 is all I need for my 360 over the next year and I'll be happy but for the general public PS3 is poised for a realistic comeback. Blu-ray itself is up 300% from last year.
Plus PS3's "HOME" enviornment is getting better on a weekly basis now. Unlike Xbox Live where you have a fruity avatar that jumps up and down on your profile.
So there you have it. I still feel Xbox has the better game library overall and will continue to have the better content for a while BUT I think Sony is making the right moves now for the general public.
- 4:36pm EDT - August 25th, 2009
It's small wonder, considering the sheer amount of awesome that goes into the thing. Seriously, £249/$299 is just ridiculously good money for what you get.
Also @1 - He was asked the question and answered, it's not like Sony have been bragging about it!
- 5:24pm EDT - August 25th, 2009
imo N64 and PS1 started getting ppl in2 games but PS2 and Xbox really got everyone and particularly adults who werent already computer nerds into gaming
1solidsnake | solid1snake67
- 6:31pm EDT - August 25th, 2009
wouldn't you make more money if it price dropped and cut the cost down on making the console. now they can really compete with microsoft. consumers will have to choose between a ps3 slim with a free online membership. and an xbox 360 that doesn't have it and are about the same price. DOES EVERYONE NOTICE HOW THE ELITE COSTS MORE THAN THE PS3 NOW!? lol
- 9:42pm EDT - August 25th, 2009
And Geiko said i just saved 15% on my car insurance.......
This will permanently ban this user and delete all associated comments. This action is irreversible, are you SURE you want to do this?!