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PS4 hardware loss will be recovered at launch via PS Plus subs & launch titles, Sony hopes

Friday, 20th September 2013 09:11 GMT By Dave Cook

PlayStation 4 is expected to make a loss at launch, Sony has confirmed, but the company hopes to regain some of the outgoings via the new paid PS Plus requirement for online gaming. Launch titles are also hoped to stem the loss.

The quote comes from Sony Japan executive Masayasu Ito, who explained the company’s hopes to Eurogamer. The site also cites unnamed sources who suggest that there will be a $60 loss for each $399 PS4 sold, however, Ito denied the figure when asked if it was accurate.

He could not confirm if more than one launch title would have to be bought to negate the loss, but hoped that each customers’s initial PS4 spend would recoup the sum. He stressed that regardless, PS4 is poised to make a profit quicker than PS3, echoing earlier comments from Sony’s Andrew House.

What do you make of the above? Are you happy to pay for PS Plus as a mandatory multiplayer payment? Let us know below.

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34 Comments

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  1. Diingo

    I still think multiplayer should always be free for everyone.

    This makes me not even want to get a next gen console.

    #1 7 months ago
  2. VibraniumSpork

    “Are you happy to pay for PS Plus as a mandatory multiplayer payment?” – Cue the trolls in 3,2,1…

    I’ve been a PS+ subscriber for over a year and have always found it be an excellent value proposition in terms of the free games and discounts you get. I think a lot of people who come to PS+ for the first time this year will feel that these perks easily mitigate the extra few £s they now *have* to pay to play online.

    Any hey, the alternative is well documented. MS have made you pay to play online for years and have offered very little in the way of fringe benefits in all that time. In this arena they’re definitely the ones playing catch-up.

    #2 7 months ago
  3. Djoenz

    PSN+ on ps3 is ace, but psn+ on ps4 wont get you the same quality of free games Im sure of it. I wont buy a ps4 anytime soon because of this shit. Betta beliebe it. Ive been repeating my words so many times since they announced this.

    #3 7 months ago
  4. super3001

    lol making a loss again?

    so much for psn+ subs funding infrastructure. shit online service will stay shit.

    #4 7 months ago
  5. machy

    ^^ what ever helps u get throw the night

    #5 7 months ago
  6. Bomba Luigi

    I’m buying a PS4, but no PS+. So I guess I’m not a big Help ^^

    #6 7 months ago
  7. DuckNation

    Yeah I don’t care that ill be paying $50 a year for PLUS have had it over a year now and it has saved me over $100 in Games/DlC/Avatars plus all the free games that iv’e played from the service so them continuing this on PS4 i have no problem and happily will be paying it.

    #7 7 months ago
  8. AngryConsumer

    sony can live in the hopes but i am not paying for ps+, that is for damn sure!… putting online gaming behind a pay wall was sonys biggest mistake. where was the cry out and anger for this wrong??…

    #8 7 months ago
  9. Lv01

    PS+ offers you so much more than the online gaming though… i already pay for PS+, and happily, and so the fact that my online gaming is now Ps+ only… not even gonna notice!
    the instant game collection was, and still is genius. its worth the £40 a year just for that.
    far cry 3 and street fighter x tekken next week! bring it on!

    #9 7 months ago
  10. smartalves

    can tell if they going th shoot themselves on the feet with this but I tend to agree with @7. The savings will balance the fee.

    #10 7 months ago
  11. Fethennour

    “Are you happy to pay for PS Plus as a mandatory multiplayer payment?” Seriously, Mr Cook…

    #11 7 months ago
  12. DrDamn

    Online gaming and the PSN infrastructure costs, as long as PS+ money is used to strengthen this then I have no problem paying. I’m already a member and have been since launch. As it’s grown the value has too, especially if you have a PSV & PS3 too. Not an issue for me. I can see why it is for some but I think this was a necessary step to compete for the online market with MS. The investment in the PSN was needed.

    #12 7 months ago
  13. CyberMarco

    As much I like PS+ and just renewed my sub yesterday I have to say that it’s a bold move. Regardless of price/value the service offers, online multiplayer should have been free nevertheless.

    Well, at least compared to XBL Gold you still can access F2P games and non-multiplayer features of the console, like Netflix etc without PS+.

    @12

    Then how does PC gaming offer free online multiplayer?

    #13 7 months ago
  14. Hcw87

    Lets hope they invest in something like dedicated servers world wide, so they can support dedicated servers on CoD Ghosts for example, and being able to support Titanfall if it ever comes to the console.

    With the recent issues with downloading GTAV from PSN it only shows how bad their current infrastructure is. And with PS4 launching and people buying digitally, it will only be more straining on their servers.

    #14 7 months ago
  15. super3001

    article say psn sub is COVERING LOSS not investment

    #15 7 months ago
  16. CyberMarco

    @15

    I means that SONY has to spend 400$+ to sell a PS4 for 400$.

    #16 7 months ago
  17. VibraniumSpork

    I take it that everyone complaining here about MP being kept behind a paywall has been raging against Microsoft since 2005?

    http://i1276.photobucket.com/albums/y462/staffpicks/Animated_GIFs/bth_Patrick.gif

    #17 7 months ago
  18. DrDamn

    @13
    It’s not really free it costs and someone, somewhere pays for it somehow. Whether that’s through money gained in sales, advertising or other streams. What this approach does is make those costs a bit more visible and applicable to the people who use it most.

    A PC multiplayer system is a collection of lots of different services, some of which end users pay for or supply themselves, or are funded in different ways. It’s hard to compare the two systems as they are different approaches. One is a closed system where you have a platform holder supplying a lot of the support services in a single interface/package, the other is open with a number of different possibilities for each service (voice chat, servers, delivery etc).

    In a pure digital world I would say separation of SP & MP would allow for the MP to have an additional cost associated with the online side.

    @14
    Supplying a dedicated server system for other publishers to use at a reduced rate yes, for some select publishers/games for free no.

    #18 7 months ago
  19. DrDamn

    @15
    Article says initial spend (peripherals, subs, games), PS+ is a yearly sub. too so good try but no.

    #19 7 months ago
  20. spoffle

    @16, Oh lawd, no it doesn’t. Sony won’t be selling PS4s wholesale to shops at $400+ each.

    Come on, why would shops sell them at the price they bought them?

    Sony will be selling them wholesale a quite a bit under the RRP, it’s the way it works.

    Distributors and retailers will be making a cut on the final sales of $400~

    Sony’s actual cost is more likely to be around the $250~ mark.

    #20 7 months ago
  21. super3001

    and sony dont get anywhere near $60 for $60 game so will take more than that to cover losses on hardware

    19

    wow great so they can invest tiny amount in year when new subs. lol still never be enough to make psn good online service

    too late too far behind xbl with massive investment

    #21 7 months ago
  22. Eregol

    They lost more money with each PS3 was launched. $60 isn’t all that much in the grand scheme of things.
    And the amount of stuff you get from PS Plus for the price of a single game is way too good value to turn down really. It’s one thing whining about MP being behind a paywall, but with everything else they give you it’s going to reap dividends really.

    I think they’re being generous with their estimates of console loss being covered with a single launch game and a PS Plus sub, but you can guarantee that some of the profit from each Sub will go towards offsetting the console loss and some will go to PSN improvement.

    #22 7 months ago
  23. Francis O

    Online gaming should be free. Steam and Nintendo Network are free, so that is where I’ll play my multiplayer games.

    I’ll get a PS4 when there is a price drop and FF 15 comes out.

    #23 7 months ago
  24. DrDamn

    @22
    Yep, much more sensible approach to costs/pricing from both camps this time.

    #24 7 months ago
  25. sg1974

    Doesn’t every console sell at a loss at first? Though Sony better hope and pray they can get MS-levels of profitability quickly with this, because the entertainment division needs to help the company pull out of the red in quick order before the investors (and activist sharks like Loeb) get more pi$$ed.

    #25 7 months ago
  26. Dave Cook

    @25 Microsoft reckons Xbox One won’t. I’ll try and find where they said that. I’m not sure if that’s accurate though.

    #26 7 months ago
  27. Eregol

    It’s a show of honestly at least.
    I’d rather both companies came clean about their financials on the new consoles rather than all the guesswork.

    #27 7 months ago
  28. sg1974

    @26 So it shouldn’t at that price. ;o)

    #28 7 months ago
  29. Playmaker

    @2 @17 the ponyboy is strong in this one. How’d you enjoy that month and a half of no service after being hacked? Nice value proposition.

    It’s business decisions like these that keeps Sony in the toilet and having to sell everything they own. That’s why Sony is an insurance company and movie/music company.

    #29 7 months ago
  30. Dragon246

    I have always maintained that launch hardware should be launched at a loss, consumer wise. Lets be honest, many people who buy the system are more intrigued by the “potential” of the console rather than what it currently offers.
    If MS isn’t following suit , it will be a clear case of Apple Syndrome. MS wrongly thinks it can sell a device at any price it wants. Looks like they didn’t learn anything from Surface.

    #30 7 months ago
  31. sg1974

    @29 Troll-oll-oll-oll-oll, loll-loll, loll-loll.

    #31 7 months ago
  32. Lengendaryboss

    @31
    Save your energy typing.
    http://www.youtube.com/watch?v=2Z4m4lnjxkY

    #32 7 months ago
  33. DrDamn

    @25
    Yes but I think it’s widely accepted MS & particularly Sony took bigger losses last time around. They are being a lot more conservative this time which is what they should do for the good of the industry as a whole.

    #33 7 months ago
  34. MrRehab

    I don’t see the problem of paying for the PS+, it provides free games more than XBL, you can still watch Netflix and stream gaming online without PS+. Don’t see whats the problem if Sony adds online gaming to PS+.

    #34 7 months ago