PlayStation 4 is likely to break even on manufacturing costs in a similar time span to the PS2, as opposed to the PS3’s long struggle to profitability.
“The economics of PS4 are far closer to the economics of PS2 than they are to PS3,” he said.
“So if you consider with PS3, it was a highly bespoke architecture; it was expensive to make. And we weren’t making money on many of those devices, even at a high price point.
“With PS4 we come at it at a very lean price point and our economics will be far, far favorable to the PS3. So that is a job to be commended really for the internal team and of course it’s done with the gamer in mind.”
That said, analysts believe the hardware cost of the PS3 is around $381, which is quite high compared to its RRP of $399 in the US. The Xbox One is believed to be rather more expensive, largely thank to the Kinect.
The PS4 launched in North America on November 15 and arrives in Europe and selected further territories at midnight tonight.