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Kaz Hirai: "PS4 hardware is already profitable"

CECH-1106A doing work already!

PS4 is has an amazing design. The loss in the previous quarter was probably related to higher cost of assembly because of over capacity and residual air shipment costs spilling over into Jan/Feb.

The strategy outline is quite poor though. Will make a thread on it later...

looking forward to reading what you going to say .
Also good news for Sony .
 
I thought it was funny that MS kept referring to the X bone as balanced when the P'S is easily the most balanced system this gen in terms of size performance and price. The X1 is basically a Hummer with its size.
 

Asd202

Member
Good for Sony. Xbone at 400$ without Kinect should also be profitable..

also an opportunity to revive some kaz gifs rolf

gcebph.gif

OMG.
 

heidern

Junior Member
They've sold over 7M so they've gained a lot of their economy of scale. I think they'll try to rely on CoD, Destiny etc and the holidays to get through most/all of their stock this year and shoot for a price cut to $300 next spring.
 

Shin-Ra

Junior Member
Good for them, bad for gamers if this gen goes on for more than a couple years. I hope Nintendo realizes the hilarity of the design choices by Sony/MS and releases a Wii U successor in 2 years that is notably more powerful. Maybe then console users will see the uselessness in console cycles.
Yeah it feels cheap. And the controller is garbage.

It plays games well though!
Oh oh, cocky Sony.
Sony sure can use the money.
Great console, so all of this is well deserved. Now fix your fucking OS, please.

Thanks.
Thread has already delivered.
 

GenericUser

Member
Good Job Sony, well deserved! Designing well thought out products that consumers actually want + making a profit on them = win win!
 

ethomaz

Banned
Great news.

It was expected too... the launch units are always more expensive to produce than the others after the manufacture line adapts to the mass production.

And the cost only will go down.

How much of a bomba would a PS4 official price drop announcement at E3 be?
Megaton is weak for that bomba... we need a new word.
 
They've sold over 7M so they've gained a lot of their economy of scale. I think they'll try to rely on CoD, Destiny etc and the holidays to get through most/all of their stock this year and shoot for a price cut to $300 next spring.

There will never be a spring price cut. Price elasticity from February to October is historically very poor for gaming products. Any price cut will be timed for September/October.
 

fred

Member
Unless Xbone starts to really catch up and sustain some significant momentum sales wise I doubt SOny will cut the PS4 price. There really won't be any reason to

There's a very good reason for them to. Cutting the price by $50 will pretty much kill the Xbox One in the States, the only territory that the Xbox One is doing okay in. A small price cut like that will easily be covered by software bought for the system and PlayStation Plus subscriptions...and will also return the status quo of the PS4 being the most powerful machine for less money.

It would be an astute business decision to cut the price.
 

Shengar

Member
Wait, already? They said that it sold at loss initially and only will make profit after purchase of two games or PS+ right? Damn, at this rate they can have a real price drop in the end of the year.
 
IIRC PS4 was already profitable/no net loss at launch if one game per console was sold.
So I guess production costs are now down by $60++ after 6++ months?

Did MS say anything for the XB1?
I guess it was probably sold at a similar loss like the PS4. But Kinect 2 is supposedly cheaper than $100 to produce so dropping it did no recover all the costs per $400$ model. Coupled with the XB1 production costs being unlikely to drop as fast as the PS4's. it's very likely now an even higher net loss for MS than at launch (at least the $400 model, but that's the one people will buy).


I have mixed feelings about it, I prefer my consoles to be heavily subsidized to get powerful (or stuff like Blu-ray back then) hardware for much cheaper prices than the market would normally allow, like the PS3. But Sony can't afford this anymore and has to go a bit the Nintendo way. On the other hand, they still managed to have the strongest console on the market.
 
Wow already. Damn Sony really thought ahead. Looks like you can have high end hardware and achieve profitability relatively quickly with the console model.
 

test_account

XP-39C²
Good for them, bad for gamers if this gen goes on for more than a couple years. I hope Nintendo realizes the hilarity of the design choices by Sony/MS and releases a Wii U successor in 2 years that is notably more powerful. Maybe then console users will see the uselessness in console cycles.
Which hilarity design choices?
 

jcm

Member
It's funny so many people are happy about this. I prefer them selling me $500 worth of hardware for $400, personally. But I'm just a game, not a SNE investor.
 

-MD-

Member
Isn't it still pretty much sold out everywhere?

It's never been sold out, I've been walking into stores in both Illinois and Wisconsin since launch and always see them on shelves.

If you want a PS4 you can easily find a PS4.
 

Marc

Member
Good news, hopefully PS4 saves Sony and we have an amazing generation.


Megaton is weak for that bomba... we need a new word.

Next one up is Gigaton.

Throw in Last of Us remastered for free and may well have to go to Teraton levels.
 

Savitar

Member
Can you please lower the price in Canada to 400$ now then? Some of my friends want to buy the system. :( Crazy how in November the X1 is 100$ more expensive and 8 months later, it will be 50$ cheaper here...

I will wager Sony is going to lower the price of the PS4 by 50$ every November now. They must be printing money then if they're already making money, esp since people tend to buy a game with the system on top half the people likely buying PS+ with their purchase.

It is rather ironic, when the system came out in Canada it was 399.99 and that's what I got my pre order as.

Now thanks to the dollar the system price has gone up.

Go figure.
 

R_Deckard

Member
I thought this was widely known anyway, Ditto X1.

It is great plan and how it should be, the PS3 was a great console in the end but it could have been Sony's last, Now we can hope this leads them on to a great,great year as the PS4 is just a superb piece of hardware and E3 needs to blow us all away!!!!
 
It's funny so many people are happy about this. I prefer them selling me $500 worth of hardware for $400, personally. But I'm just a game, not a SNE investor.

Pretty much, I'd rather had a 450/500 dollar console worth 600 dollar of hardware. The PS3 had hardware worth nearly 900 USD. Even on the PS2 at launch Sony was losing like 180 dollars per console.

Hopefully this means faster and more aggressive pricecuts and a shorter console gen.
 

Xpliskin

Member
It's never been sold out, I've been walking into stores in both Illinois and Wisconsin since launch and always see them on shelves.

If you want a PS4 you can easily find a PS4.

I have to wait till June or go to another city to get the chance to even see the thing on store shelves around here.
 

imtehman

Banned
It's funny so many people are happy about this. I prefer them selling me $500 worth of hardware for $400, personally. But I'm just a game, not a SNE investor.

i dont get it either. What this means going forward is subsequent generations will probably follow the same path and cutting edge technology will fall by the wayside and go toward more a more safe solution. But hey, if that's what gamers want
 

Spinluck

Member
The system just became profitable for them, and people are expecting a price drop immediately after? Lol.

Pretty much, I'd rather had a 450/500 dollar console worth 600 dollar of hardware. The PS3 had hardware worth nearly 900 USD. Even on the PS2 at launch Sony was losing like 180 dollars per console.

Hopefully this means faster and more aggressive pricecuts and a shorter console gen.

With the shape they're in, we all knew this wasn't happening.
 
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