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PS3Blog.net | September 19, 2017

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PS3 to Break Even this Year | PS3Blog.net

ABC has an interesting article about Howard Stringer, the CEO of Sony. It talks about profitability and whatnot, but the most interesting line was this one:

Startup costs for the PlayStation 3 have been hefty but Stringer said he expects the game console to break even by the end of the year.

The PS3 is the most expensive console on the market today, and Sony is subsidizing it. We don’t know how much, but I’ve heard numbers like $200 thrown about. If Sony can break even on every PS3 sold by the end of the year, that would be a good thing for Sony.

There was a similiar furor over the PS2. Everyone thought the PS2 was losing money at a time when the PS2 was actually making Sony money. It became profitable pretty quick.

We’ll have to see how Sony fares this time around.

Sony CEO Howard Stringer talks about profit

Comments

  1. I don’t see that happening that soon. I realize that the parts become cheaper pretty quick but knocking off $200 from the costs of the machine is a lot. We have to see I guess.

  2. I have read an article sometime somewhere, where the author analyzed the PS2 launch.

    He came to the strange conclusion, that (as Sony never said it out loud) the PS2 made money from day one.

    He showed graphs of the earnings and whatnot of SCE and they clearly showed, that when the PS2 hit, the earnings have RISEN, which would have not been the case, of the PS2 lost money in retail…

    And, to be true, I think Sony CAN manage to drop the expenses of the PS3 rather quickly. The costs of the BD ROM will drop like hell in a very short time, as is always with new technology. And having the 65nm Cell ready to tape out, its only a matter of time, till that happens too. And the RSX will take the same route.

    As Sony tapes out their own chips (dont exactly know about RSX, but Sony produces its own Cells, on B3D forums, they say, Sony also tapes out RSX), they are going to produce the PS3 cheaper much faster than MS with the 360 (and moreso with the XBox 1), as they outsource production completely.

    And if Sony can break even very fast, the PS3 will drop in price pretty soon (maybe this year already??) and then it gives MS a run for its money!!

  3. “He showed graphs of the earnings and whatnot of SCE and they clearly showed, that when the PS2 hit, the earnings have RISEN, which would have not been the case, of the PS2 lost money in retail…”

    earnings != profit.

    m3mnoch.

  4. True, but if Segitz was referring to this article from Acts of Gord, it was profits.

  5. I’d be very shocked if Sony pulled it off, but its definately something that NEEDS to happen if they’re going to keep up, let alone lead.

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