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  1. #1
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    Sony Losing $60 on Every PS4

    $60 per console is quite a hit, but they should easily make it up with the money from the PSN service


    It dropped the camera to hit 'magic price' too - hopes to make money back on selling peripherals sold separately

    Sony is rumoured to be losing US$60 on each PlayStation 4 sale, money it aims to make back via selling peripherals, software and services," says an interview with Sony Computer Entertainment president and group CEO Andy House this week.

    The information comes as Masayasu Ito a Sony Computer Entertainment Senior Vice President also pointed out that the company dropped the PS4 camera from initial bundles in order to hit the "magic price" of $399 in the USA (that's $200 less expensive than the PlayStation 3 at launch).

    For his part, House stated to the BusinessSpectator, that, "Certainly for the earlier part of the lifecycle, the vast majority of the audience that we speak to tells us that their primary wish is for the full controller interface and there's not necessarily a huge emphasis being placed on camera interaction."
    http://spong.com/article/30688/Sony-...0-on-Every-PS4

  2. #2
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    60 bucks is not bad people will buy at least 3 games and psn card they will break even

  3. Likes snooper71 wishes they had posted this first.
  4. #3
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    Yeah, Sony will be fine. It's a long-term investment at worst.

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    Quote Originally Posted by Sub-stance1 View Post
    $60 per console is quite a hit, but they should easily make it up with the money from the PSN service
    That's nothing compared to the hit they took on the PS3. 2-3 retail games per console sold is all they need to recoup this hit, we're not even factoring in extra controllers, PSN purchases, DLC, subscriptions fees etc...


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  6. Likes MonkeyClaw wishes they had posted this first.
  7. #5
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    Well at launch, nobodys gonna buy a PS4 and then not a single game (since there's no used games at that point), so they'll quickly make it back and I doubt any of the launch games will have trouble breaking even either.
    Quote Originally Posted by fuzzyreactor
    Nothing more exciting than bringing home a brand new console and watching a download screen for a hour.

    yay, next gen!

  8. #6
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    Quote Originally Posted by AaronSOLDIER View Post
    Well at launch, nobodys gonna buy a PS4 and then not a single game (since there's no used games at that point), so they'll quickly make it back and I doubt any of the launch games will have trouble breaking even either.
    I wouldn't say that's a guarantee.

  9. #7
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    $60 is nothing. They were losing $300 per console on ps3.

  10. #8
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    Quote Originally Posted by on the rocks View Post
    $60 is nothing. They were losing $300 per console on ps3.
    exactly. They make this up after you buy a DS4 and a game, particularly first party.
    Not to mention PSN.

  11. #9
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    Lol I didn't buy/pre order any games(ps+ will hold me over)! But I did buy the pseye with my ps4 sooo...I guess that offsets things

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  12. #10
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    Quote Originally Posted by Sub-stance1 View Post
    $60 per console is quite a hit, but they should easily make it up with the money from the PSN service
    thats acually pretty small hit compared to like PS2 and PS3, they lost a lot more.
    Console manufacturers make money off of software sold not consoles.


  13. #11
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    Won't take them that long to get back the loses at that.




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  14. #12
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    Thats much less than I thought. Much less than the PS3 thats for sure. They should recoup that fast. Good news.
    Last edited by mistercrow; 10-11-2013 at 06:51.

  15. #13
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    Yeah, i think Sony is just more than happy to move on from the losses they suffered with the PS3. $60 is nothing to them.


  16. #14
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    They'll be fine and they know it.
    I myself am getting an extra controller, camera, and 4 games and I'm pretty sure a whole lot of other people are doing the same thing.
    Sony's gonna be making bank in no time.

    Man, just over a month away!
    It's driving me crazy waiting this long,
    but it's so damn close!

  17. #15
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    Quote Originally Posted by TEST SUBJECT 83 View Post
    They'll be fine and they know it. I myself am getting an extra controller, camera, and 4 games and I'm pretty sure a whole lot of other people are doing the same thing. Sony's gonna be making bank in no time. Man, just over a month away! It's driving me crazy waiting this long, but it's so damn close!
    Yeah I cant wait to bring that bad boy home and start playing some KZ SF and DC.

  18. #16
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    Thanks for taking a hit for the sake of my wallet Sony!
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  19. Likes IWAO, mickice, darky89 , Admartian wishes they had posted this first.
  20. #17
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    yeah as said earlier they planned this very well and will make that money back from Psn alone so I don't feel sorry for them

  21. #18
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    Quote Originally Posted by Sub-stance1 View Post
    $60 per console is quite a hit, but they should easily make it up with the money from the PSN service
    $60 is a lot better than how PS3 started out.

    Turns out Sony will be losing change to the tune of $241.35 for every "premium" (WiFi and 60GB HDD) console, and a whoppin' $306.85 for the bargain-basement 20 gigger.
    Also getting a better return than 360 had at launch.

    In comparison, Microsoft loses $75.70 per 360 it sells
    http://www.engadget.com/2006/11/16/s...t-on-each-ps3/
    Last edited by Bitbydeath; 10-11-2013 at 09:58.

  22. #19
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    Looks like sony will be rolling in cash if the momentum keeps up.




  23. #20
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    Nice one, Sony.

    They could've easily added that $60 on to the price and still undercut the Xbone. They seem to be doing no wrong currently. I'm glad the 360 humbled them a little bit. Made them go all out this time.

  24. Likes darky89 wishes they had posted this first.
  25. #21
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    Quote Originally Posted by Ghost View Post
    Thanks for taking a hit for the sake of my wallet Sony!
    Pretty much. Better them than me.

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    considering the turn over will be massive, this will not be a huge hit to them

    Still piss them off that they are losing money at all, after the protection and money put into the product


  27. #23
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    Quote Originally Posted by BBK.. View Post
    Nice one, Sony.

    They could've easily added that $60 on to the price and still undercut the Xbone. They seem to be doing no wrong currently. I'm glad the 360 humbled them a little bit. Made them go all out this time.
    Definitely seems that is what is happening to me also. It's funny how the start of this gen is opposite to last gen. Sony where a bit too arrogant after ps2, and now MS are a bit too arrogant after 360.

    They'll sell many more consoles in the first place because of the price difference, so the $60 dollar loss on each one, will result in more sales overall so the hit will end up being less than if they upped the price.

    Don't Steal. Don't Molest Little Children. Don't Deal Drugs.

  28. #24
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    As mentioned they where hemorrhaging on the PS3 at launch even with the high price. They managed to bring down the cost to build a PS3 fairly quickly on the PS3.

    Remember, they did a $100 price drop w/ HDD's upsized before the year was out. And while they were loosing money, it wasn't as much as they were loosing at launch.

    By 3yrs in they had cut the price $200 and got almost to the break even point on the baseline model, that means ~$500 build cost reduced per console in 3yrs (from $809 cost to build to $336 cost to build entry point model.)

    Sure a lot of this had to do with the Blu Ray drive costs coming way down as that was the biggest contributor, but many other things where done to reduce cost as well, such as cost of CPU/GPU coming down (improved yields, advancement in process nodes, etc.)

    A $60 loss on the launch consoles is not much. The vast majority of those buying launch consoles are people like myself who will end up buying 50-100 games during the life of the console. A year from now, expect the cost to make a PS4 to be < $399 and we'll see how the pricing game goes from there but I'd suspect $349 units.

    Hell, I may have already paid my $60's back w/ 2 Game Pre-orders, a 2nd controller and the PS4 Eye.
    Last edited by TAZ427; 10-11-2013 at 14:55.



  29. Likes mickice wishes they had posted this first.
  30. #25
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    Over 1million pre-orders. Imagine the accessories!!!!
    PS4 is going to sell 100+million units, SONY is going to make bank!

    Quote Originally Posted by darky89 View Post
    Definitely seems that is what is happening to me also. It's funny how the start of this gen is opposite to last gen. Sony where a bit too arrogant after ps2, and now MS are a bit too arrogant after 360.
    Quote Originally Posted by darky89 View Post

    They'll sell many more consoles in the first place because of the price difference, so the $60 dollar loss on each one, will result in more sales overall so the hit will end up being less than if they upped the price.


    All SONY has to do is get a good start, bring the sales momentum in their direction with enough force to pull in the majority of the console market.
    If successful, this generation is going to be a white wash. SONY complete and utter victory like PS2.
    Last edited by mickice; 10-11-2013 at 15:05.

    PS4 has little to no competition.

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