PS4 sells at a loss, Sony plans to recoup it at launch

MondayPodcast

It’s normal for a console to be released at a price well under what it actually costs the company to produce it. The idea though is that the loss experienced from the price of the console will be recouped from the sales of the software and it looks like Sony is doing that model of business again.

Speaking with Eurogamer, Sony Japan’s executive Masayasu Ito, stated that the PlayStation 4 will be sold at a loss but that a typical user who buys one launch title and a PS Plus subscription would off-set that loss and turn it into a profit. When pushed to detail how much a customer might have to purchase for Sony to realize a profit off the sale of a PS4, Ito would not comment on that; just saying the company plans on turning a profit on an average user’s initial purchase.

According to sources close with Eurogamer, Sony expects to lose about $60 for every $399 PlayStation 4 sold. Though Ito would not comment on that rumor, he did say that they expect to profit after a customer purchases a game and a PS Plus subscription.

Finally, Ito stated that the PlayStation 4 will sell for a loss, but will become profitable long before the PlayStation 3 ever did.

Written by Kyle Jessee

Kyle Jessee

Your lone Kentucky writer on staff. Loves the Big Blue Nation, rock music, and Resistance 2 (the best in the series).

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  • way2easy

    So the PS4 costs $550 here in Oz, guess that means I’m a loyal sony customer doing my part to keep the company afloat?

  • ChazzH69

    Well the PS4 is selling for £350 ($560) in the UK, so we are getting a poor deal, but I don’t mind, we get the best PlayStation Plus deals now.

    • The £350 includes tax though, whereas the US prices are always before tax has been added. So with VAT @ 20%, the console is essentially £280 ($450).
      Don’t get me wrong, I’m not happy with our prices for consoles generally being more, but the $50 difference isn’t too bad when they’re compared on balance, pre-tax.

      • ChazzH69

        It’s bad enough Raj. I might try and claim the tax back due to it being a business expense. lol

  • MJC

    This isn’t really that surprising. I mean the hardware usually sells at a lost and don’t they include their R&D into the loss sometimes.