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Sony “not planning a major loss” with PS4 launch

Thursday, 9th May 2013 12:30 GMT By Alex Donaldson

PlayStation 3 launch was a monetary blood-bath for Sony, with the launch of the high definition machine very costly indeed. As part of today’s earnings call to investors, the company has committed to keeping costs down for PS4 launch.

“Unlike PS3, we are not planning a major loss to be incurred with the launch of PS4,” Sony Chief Financial Officer Masaru Kato said during the call, caught by Eurogamer.

Kato went on to explain that a large part of the expensive costs associated with the PS3 launch was to do with the creation of the unique Cell architecture. With the PS4 running on existing technology, the machine will be less of a money sink and more quickly profitable.

“At the time we developed PS3, we made a lot of in-house investments to develop the chip, the Cell chip. Development of the chip saw the silicon processing and all the facilities invested by us ourselves,” Kato explained.

“But this time, yes we have a team working on chip development, but we already have existing technology to incorporate and also product investment and all the facilities will now be invested by our partners, other foundries, so we don’t have to make all the investment in-house.”

These comments point to a Sony confident that the PS4 will turn profitable more quickly. Things are less positive for the Vita, which the company is predicting scant sales for in the 2014 fiscal year.

You can find more on Sony’s financial results release today through this link.

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21 Comments

  1. monkeygourmet

    Well, they can’t really afford too.

    Also, there isn’t a costly ‘trojan horse’ media format included with this console.

    Just 4K playback, but that sounds like it’s through download / hardware so less cost is required.

    Other parts sound pretty off-the-shelf, still think it’ll be about £399

    #1 1 year ago
  2. Erthazus

    Media format is not costly. It was always a benefit for Shmony.

    this time around no Cell, no shitty architecture. Just your standard PC hardware with outdated AMD POS.

    PS3 design was freakin hillarious. All in-house + Nvidia chip + IBM/Toshiba/Sony worked hard for Cell POS.

    #2 1 year ago
  3. Da Man

    Alas, the army of devoted nerds supporting Pos3 during it’s first three years of madness and agony has vanished.

    Can’t really afford selling a movie player with a few demos this time as well.

    #3 1 year ago
  4. KineticCalvaria

    @2 Are you incapable of commenting without mentioning PC every single time… I prefer my PC too but just shut up.

    #4 1 year ago
  5. G1GAHURTZ

    Are you incapable of commenting without mentioning PC every single time…

    Yes, he is.

    #5 1 year ago
  6. DrDamn

    @MG
    It’s not about being able to afford to, MS are doing much the same, it’s about this being the right way to do this. Previous console development models, as tech became more advanced and costly, were the wrong way to go.

    #6 1 year ago
  7. G1GAHURTZ

    Realistically, Sony need a proper, premium online system.

    They can’t keep offering free online, while MS is raking in money for nothing.

    #7 1 year ago
  8. Erthazus

    @4, Because Pc hardware is inside PS4? IS that a problem?

    #8 1 year ago
  9. Templar_Dante

    @1 and @2
    I find it funny, you two hate Sony in EVERY Sony related article.
    Its actually nauseating having to wade through senseless negativity in every PS4 related article.
    The sad thing is, rather than play Xbox games and PC games, you waste time commenting hate.
    Lifes too short to waste time commenting garbage.

    Whats worse, people get tired of even replying to your hate, most dont bother.
    In fact, I think you two are turning people away from VG247.
    Im new here, and even I am getting tired reading the same rhetoric from you two.

    #9 1 year ago
  10. DrDamn

    @8
    Actually agree the off the shelf-ness of some of the components is a factor in the article and therefore valid to mention PC. Just the once though and only if followed by POS like everything else in your post. It’s not standard – regardless of your opinions on the overall power, but it’s fairly pointless getting into that debate with you.

    #10 1 year ago
  11. Templar_Dante

    and @1

    8 core jaguar cpu (2res for OS, 6for gaming)
    HD6770 GPU
    8GB DDR3 ram (6 for gaming, 2 for OS)

    Sounds better to you?
    Its a pity you try watering down the PS4 so much, when MS wants the Xbox Infinite to be a “trojan horse” in the living room and seeing as its profit to MS is a just a tiny zit in comparison to their other business, if Xbox Infinite fails to achieve this, they’ll withdraw from the console biz.
    then what?
    You withdraw from gaming also?
    Sad. Be a gamer, not a fanboy.

    #11 1 year ago
  12. Templar_Dante

    @ G1GAHURTZ
    Yeah, I hope theres a few tiers.

    1)Free PSN gaming.
    2)PSN gaming and PSN+.
    3)PSN gaming, PSN+ and Gaikai.

    I think, if you look at how many people flock to PSN+ now, adding tiers of membership would be great.
    I do think though.. at the core, gaming should be free.

    The rumored XBL fee next gen is $15 per month for a “family membership” but if you buy an Xbox Infinite game, you get a free 1 month XBL gold,
    So buying 12 games a year grants “free XBL”.

    But MSFT is raking money in with Ad’s and the fact XBL is P2P is crazy but true.

    #12 1 year ago
  13. theevilaires

    @ G1GA thats what PS+ is for. SONY is making money off of that not losing any. Last time I checked too 90% of people on my friends list had a PS+ emblem next to their name (except for you and Psychotext ;) )

    Microsoft has been charging for LIVE from the get go back in the original XBOX days so it seems they are more successful, but you have to remember not every LIVE member is a paid GOLD sub. As a matter of fact I bet LIVE is losing paid subs as SONY is gaining in about the same amount of time. If SONY keeps giving consumers reason to sub for PS+ (awesome games) then PS+ will/is just successful as LIVE and can still have free online multiplayer.

    Not all that money goes to server cost for LIVE. Microsoft definitely pockets some of that cash for exclusive deals. Last time I checked LIVE and PS+ were the same price because $10 automatically goes to ESPN. If PS4 has what PS3 and Vita does now and stays free then LIVE is gonna take a back seat. Last time I checked the Vita had cross game chat and cross game invites. I’m pretty sure its safe to say so will the PS4.

    #13 1 year ago
  14. tmac2011

    i hope its in my price range but i can always wait ill keep my psn name too :D

    #14 1 year ago
  15. theevilaires

    @ Templar Dante I’m up for tier pricing but only on those options you give above. I think it would be very smart for SONY to adopt that idea. Even include Gaikai with the standard PS+ sub. I’d be willing to pay $80 a year for PS+ and gaikai if SONY kept free online gaming for the masses.

    Its basic principle. I think its bullshit we would have to pay $60-$70 for a game and could only play half of it. Thats wrong and shady business and the main reason I despise the XBOX. Single player campaigns only last up to about 8-10 hours. I’m sorry but thats not worth $60-$70. The other half of that $60 goes toward server cost and mind you if server cost were that much of a pain to let go free then online passes would be more than $10 when you buy a game used.

    #15 1 year ago
  16. mxmassef

    Actually it has amd radeon hd 7850 or 7870. It is somewhere between these two. And ps4 has 8 gb ddr5 ram not ddr3.

    #16 1 year ago
  17. Reddpayn

    I suggest that ps4 will cost around 400dollars or in europe it might be 599euros with a game

    #17 1 year ago
  18. Silent Killer01

    I’m just waiting for ONE of those bad rumors about the next generation Xbox to be true then I’m switching back to PlayStation.

    So tired of hearing about the free and Plus offerings while all I have got is “Happy Wars”. Not going to pay for crap I don’t want and nobody asked for and these stupid timed exclusives I never buy but am forced to pay for through Gold.

    #18 1 year ago
  19. monkeygourmet

    @6 DrDamn

    I know PC’s always outclass consoles, but I feel this long cycle of consoles isn’t going to cut it next gen.

    Phones and Tablets almost double in power every few months at the moment, I know it’s not exactly the same device, but this 10 year cycle shit doesn’t really cut it for me.

    If the PS4 is going to cost less to make, then I would like to see a shorter lifecycle. With the currant specs it has and the advent of Tegra 4, Maxwell etc… I just don’t feel this jump is going to be enough for me to bother with.

    Im will almost certainly get a 720 next gen (for Friend online co-op etc…), but will be looking to go heavily into PC gaming if the 720 is the same / worse than the PS4.

    I was hoping for at least 1080p / 60fps on new consoles, and frankly you can easily do that on a PC for £399, especially with Steam Big Picture and a 360 pad.

    After seeing Unreal 4 look a little shakey on PS4, we are already seeing limitations before the thing has been seen or has a price!

    I don’t think the Xbox will be hugely powerful, but I would like it to at least hold it’s own against PC’s for a year.

    If not, i’d be happy with a five year console cycle, especially as both machines are essentially PC’s now, with no weird hardware to learn to use.

    #19 1 year ago
  20. Rockin a Jack D

    My PC pisses over this console.

    #20 1 year ago
  21. Templar_Dante

    @MXMASSEF

    Those specs are for Xbox Infinite/Xbox Infinity/Durango/Xbox3/Xbox720.
    Here it is again, just to get facts straight. :

    Xbox720/Infinity

    8 AMD Jaguar Cores X86-64 (2 Reserved for OS,6 for games)
    ARM CORE for Security.
    8GB DDR3 ram (2-3GB Reserved for OS, 5-6GB For games) at 60Gb/s
    HD6770/7770 hybrid with 12 CUs (6+6)
    Windows 8 Core
    =1.2TFlops

    PS4

    8 AMD Jaguar Cores for games alone.X86-64
    ARM CORE for Security AND OS (background downloads etc)
    8GB DDR5 ram@176Gb/s. UNIFIED. No need for embedded ram as devs can code to the metal. Like with PS3.
    HD7850 with 18CUs. (14+4)
    = 1.82Tflops

    The PS4 far far outweighs the next Xbox in specs, so I dont know why kids run amok here claiming “death to sony” over and again.
    Im not saying specs are all that matters only.
    Look at Msfts 1st party….Its laughable.
    They made Fable,Halo,Forza rinse and repeat all gen.
    The only exclusive this year is Gears Judgement.

    So lets see who wins next gen.
    I just think, 1st party games will be who determines the victor.

    #21 1 year ago

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