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Sony isn't planning on taking a major loss for its PS4 launch
Sony isn't planning on taking a major loss for its PS4 launch
May 9, 2013 | By Kris Ligman

May 9, 2013 | By Kris Ligman
More: Console/PC, Production, Business/Marketing

"Unlike PS3, we are not planning a major loss to be incurred with the launch of PS4."
- Masaru Kato, Sony Chief Financial Officer

Major video game console launches are often tied to financial losses due to major investment. But in an earnings call today, Sony said its upcoming PlayStation 4 launch will have a smaller negative impact when compared to PS3.

"At the time we developed PS3, we made a lot of in-house investments to develop the chip, the Cell chip," says Masaru Kato. "[For the PS4] we have a team working on chip development, but we already have existing technology to incorporate and also product investment, and all the facilities will now be invested by our partners, other foundries, so we don't have to make all the investment in-house."

As Gamasutra previously reported, Sony's game sales were down 12.2 percent in the last fiscal year, but its overall enterprise turned a profit of $435 million - in line with projections and despite having come off a record loss in the year prior.

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Chris Kontos
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Yeeeahhh, well.....
That doesn't depend on faith and will, it depends on the price of the console and the launch lineup.

Mike Kasprzak
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What? Wait, no? That may comfort investors, but is a somewhat scary statement for developers, especially those putting low price tags on titles. O_O

john talbot
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i'm pretty sure that's what they told themselves before the PS3's launch... good luck, Sony.

Christian Nutt
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I am absolutely sure that is not what they told themselves before the PlayStation 3 launch.

I don't get comments like this. They have absolutely no factual basis, and get two thumbs up.

Mike Griffin
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Seriously. At the time, they were the only firm placing orders for Cell production, and the PS3 was the one and only device using the chipset -- an ill-advised, mega-loss vehicle for the technology. It was very costly to set up private foundry and production pipelines.

This time around they get to piggy-back existing manufacturing and production avenues and let partners like AMD/ATI handle the headache, using existing (yes, modified) technologies that have already entered production at third-party facilities.

Not to mention greatly reduced form factors in the chipset.

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I thought Sony took a loss at about $200 a console sale when it came to the PS3. Given this is new tech is PC like it should be about $400 to $500 with no loss, unless they take a cut in offering a subscription base model.

Nuttachai Tipprasert
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Wait, what? I didn't remember hearing anything you claimed. I only heard that PS3 was selling at a huge loss price because of its Blu-ray and Cell and that's why Sony has been in the red for this entire generation.

You must be very optimist to believe that PS3's $600 price tag was a profitable price.