Sony to break even with PS4 at launch

Sony expects gamers to buy at least one game and a PS Plus subscription at launch.

September 22, 2013
PS4 news

Sony expects to break even with the Playstation 4 at launch. While the console is sold at a loss to make the entry point more attractive, Sony expects to make up that loss with the initial console sale along with a game or two.

Speaking to Eurogamer at Tokyo Game Show 2013, Sony Japan executive Masayasu Ito explained that while the PS4′s hardware was sold at a loss, it was not as significant as the Playstation 3′s launch, in which the company risked taking losses of over $200 for every PS3 sold.

Ito was confident that the company would also see profits from the PS4 much sooner than they did with the PS3 and that more Playstation Plus subscriptions would not only subsidise the console’s losses, but also benefit the online multiplayer services that Sony is planning to improve.

Sony also announced at TGS 2013 that they expected to ship five million PS4 consoles before the end of March 2014.

Sources close to Eurogamer have revealed that the PS4 is sold at a loss amounting to $60. With over one million pre-orders alone, that amounts to a loss of $60 million at launch.

Eurogamer reckons that the addition of a single game or a PS Plus subscription would be enough to break even on the console.

In a similar vein, Nintendo predicted that with the Wii U’s launch, only one game purchase in addition to the console would be enough to make it profitable. Sales of the Wii U, however, have not been favourable.

Sony may be right about expecting to make the PS4 profitable sooner in its lifespan. The PS4 will be launching across 32 countries this year and the company has been producing consoles for a while. The Xbox One will be launching in 13 countries by comparison and Microsoft has only recently begun production of the consoles.

Source: Eurogamer

More Playstation news:

PS4 SA warranty details revealed

PS4 supports HDMI recording, voice control, gestures

GTA 5 PlayStation 3 500GB bundle in SA?

The Last of Us becomes best-selling PS3 game of 2013

Tags: eurogamer, headline, Masayasu Ito, Microsoft, Nintendo, PlayStation 4, ps4, Sony, Sony Computer Entertainment, TGS 2013, Tokyo Game Show, wii u, Xbox one

Shutterstock is the image partner of MyGaming – technology images can be found here

Poll

Is the cheaper Xbox One minus Kinect a more enticing product?

View Results

Loading ... Loading ...

Latest News

Game piracy in the UK is no longer a “crime”

Piracy Skulls

The British government, along with several ISPs and content creators, are changing their stance on game pircay

Keeping up with Kim Kardashian Hollywood

Kim Kardashian Hollywood

MyGaming gets stuck into the latest Kimmy K soul selling simulator

Discounted graphics cards and more in Takealot Daily Deal

Nvidia GeForce GTX770

Takealot.com has put together a gaming-centric Daily Deal package – you have less than 10 hours to take advantage

NewBee rules Dota 2 The International

Newbee

Team NewBee has taken home just over R53 million for winning this year’s The International

bool(true)
X

Newsletter Subscription

Name
Email *
Enter the following to confirm your subscription *
Captcha image