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Playstation 4 Sony making $18 Profit

sunrise

aka ginger warlock
V.I.P.
I am not sure how much the profit margin is of making $18 per console sold but according to some whiz with a calculator that is what is being made if The Register is to be believed:

It's the games, stupid: Sony to make 'about $18' on each PlayStation 4

But wait - Microsoft hopes to make a bit of cash too


According to a teardown report from analyst IHS, Sony is making just $18 on each Playstation 4. This may not sound like much, but it marks a massive improvement from the days in which the Japanese firm made huge losses on the sale of games consoles.

According to the report, each Playstation 4 costs Sony about $381 to manufacture (including parts and assembly) and sells for around $400.

The full report comes out later today, but AllThingsD got an early glimpse of it.

“If Sony could build the PS4 for a lower cost it would do so, but if history is any indicator, it would also lower its retail price,” says Andrew Rassweiler, an analyst with IHS.

Taken alone, this figure might sound like much of a coup for Sony. However, the Playstation 3 was sold at a huge loss, with every $599 Playstation 3 costing just over $800 to produce.

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It would be unfair to assume that the PS4 will run at a complete loss and that Sony will not make much money back but when a company is focusing on making a profit on games and it could be suggested they will I think they need to worry. Sony did not do well with the PS3 last time around at the start of launch and they need to avoid it this time around.
 

BigBob

Registered Member
The only reason Sony didn't do well with the PS3 launch was because of the price. Sony didn't hide the fact that they planned on selling the PS4s at close to a loss and making most of their money off of games, and I see no problem with it.
 

Crouton

Ninja
V.I.P.
Sony ended up doing really well with the PS3 over time. People panic at launch time if things don't go well. Look at the PS3, it's launch wasn't great, but over the what, 6 or 7 years it was a major console it became a huge seller and success worldwide. The PS4 will be the same. Every console struggles in launch.
 

dDave

Well-Known Member
V.I.P.
$18 is actually a fair profit for them considering that's JUST the console. Consider accessories such as the controllers and camera, add on top of that the hundreds of millions of games that will be sold for this console and they've got themselves in a really sweet spot. Many of the games will be bought digitally which means they don't even have a manufacturing cost to make that sale.
 

sunrise

aka ginger warlock
V.I.P.
Its true that most consoles do struggle, the Xbox did from what I remember get crushed by the PS2 but the Xbox 360 crushed the PS4 so now I guess it is just a case of if Sony can win the war. One console I can think of that did achieve success from day one was the Nintendo Wii, it was almost impossible to get one.

You may be right dDave, I am unsure of what this amount of money actually means to the company over all, this was simply an opinion of the register so as far as I know things might work out well.
 

Crouton

Ninja
V.I.P.
The Xbox 360 didn't actually crush the PS3. It just depends where you are. For example, in Japan and many European countries, the PS3 outsold the 360 by heaps. 360's were pretty uncommon in some of those countries and basically non existent in Japan, a huge gaming country. But in the US the 360 was more popular than the PS3. Yet in other countries like Australia and New Zealand it was about 50/50. So I don't think it's fair to say anyone "crushed" anyone else in this situation. It varied greatly between countries.
 

Doc

Trust me, I'm The Doctor.
V.I.P.
In case anyone is interested here's a link backing up with Crew has to say on sales figures:

Platform Totals - VGChartz

The 360 might have won based on popularity in the U.S. but the PS3 outsold the 360 because of a string of great game releases and generally reliable hardware. The only place the 360 outsold the PS3 was in the United States.

In regards to the OP: The PS4 is getting better publicity right now in the U.S. than the 360. From what I can tell it also is getting better positive reactions in word of mouth. A large part of all of this is the DRM issues and the worries about the camera spying on people. Are they unfounded? Sure. Does that mean people as a whole will understand? Not a chance. As it stands Sony is on top and still rising because of fantastic support on the PS3 for the final third if it's life.

I think this is the generation that puts Sony back at number one. Only time will tell because it all boils down to the games.
 

Chaos

Epic Gamer
V.I.P.
$18 is actually a fair profit for them considering that's JUST the console.
I heard that both Xbox One and the PS4 sold over a million units on the first day of release. So that's $18million profit for Sony straight off the bat.
 
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