Sony taking a loss on PS4, but expects profit off of 'initial purchase'
It's common practice for console manufacturers to sell their consoles below cost, subsidizing hardware for profits made up by software and accessory sales. PS4 continues that trend.
In spite of its $600 price tag, Sony famously took a huge hit with every PS3 sold. With the exception of Nintendo, it's common practice for console manufacturers to sell their consoles below cost, subsidizing hardware for profits made up by software and accessory sales. PS4 continues that trend.
Sony's Masayasu Ito wouldn't reveal exactly how much the company is losing with each PS4 sold, however he said that the company is expecting a profit "on an average user's initial purchase."
Eurogamer claims that Sony loses approximately $60 on every PS4 sold. However, the sale of a PlayStation Plus subscription and one launch game will go a long way in making up the difference.
Nintendo made similar comments at the launch of Wii U, pointing out that all it took was the sale of one game to sell their latest console at a profit.
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replyAndrew Yoon posted a new article, Sony taking a loss on PS4, but expects profit off of 'initial purchase'.
It's common practice for console manufacturers to sell their consoles below cost, subsidizing hardware for profits made up by software and accessory sales. PS4 continues that trend.-
But I bet they'll feel the moment they announced the price was worth it. http://www.shacknews.com/article/79640/playstation-4-to-launch-for-399
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Yeah it was a pretty smart move. They're getting the massive lead at the beginning and within a year or two they'll be able to reduce costs of production.
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I have to wonder, how much more competitive Xbone would be had they gone with their current policies from the beginning, and matched the PS4 on price.
Even despite the weaker specs and Kinect, I bet this would be a pretty tight race. As it stands, the Xbone probably won't be an abject failure, but it's obviously lagging considerably behind PS4 already.
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Nintendo has stated that the last few consoles, going back to the Gamecube, have been sold at a loss.
http://www.engadget.com/2012/04/26/nintendo-confirms-that-its-selling-3ds-at-a-loss-expects-that/
http://news.cnet.com/8301-10797_3-57597596-235/nintendo-we-still-sell-the-wii-u-at-a-loss/
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Last time I checked nintendo was selling the DS and the Wii with gain at point of purchase of the console itself.
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can't believe people were believing there was going to be a like $100 per unit profit http://www.shacknews.com/article/79640/playstation-4-to-launch-for-399?id=30309391
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