PS3 to Break Even this Year
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.