Sony Computer Entertainment Chief Kazuo Hirai has revealed that the recent announcements regarding the PS3 signal a new direction and a renewed vigour for the console.
Additionally it has been revealed that the company is moving, once again, to a price point where the PS3 will sell at a loss. Until only recently Sony had been making a considerable loss on the console owing to expensive hardware and components.
Despite cost reductions in the manufacturing process the PS3 has historically weighed down on Sony Computer Entertainment’s profitability ratios. Regardless, the company has revealed that it does not regret choosing newer and more expensive technology for the PS3, adding that producing a console with inferior hardware would have made it difficult to stretch out a competitive lifespan.
Until recently Blu-ray ay technology, a mainstay of the PS3, was a costly and obscure affair. Today Blu-ray DVDs and High Definition televisions have become more affordable which in turn has made the high quality video format far more popular.
Although Sony acknowledges that it has not seen the same growth in the PS3 as it saw in the PS2, it hopes that the recent price cuts and the announcement of the PS3 Slim may boost sales numbers.
Sources predict that Sony is currently losing between $50 and $70 on each console (R400- R560) although this number is expected to decrease over time. Still, the improvement is far greater than the estimated $250 (R2000) loss on each console at its release.
Loading ...
