The PS4 wont be sold at a major loss like PS3 was

first_imgWhen Sony originally released the PlayStation 3 it contained some expensive tech, including the then relatively new Blu-ray optical drive and Cell processor. That inevitably meant that Sony had to take a hit on every console sale and made a major loss in the hundreds of dollars per machine.Doing that is risky, but Sony would argue they had to do it in order to compete better with Microsoft. And yes, that Blu-ray drive has continued to be of benefit and a feature the Xbox couldn’t match as the manufacturing costs came down for Sony. But with the PS4 things are different, and Sony has stated there won’t be any major losses made on this console.That claim comes from Masaru Kato, Sony’s CFO and executive vice president. And it’s easy to believe. Sony has chosen an x86 processor and is sourcing its CPU/GPU/memory from AMD. Both those decisions significantly cut the cost of the hardware. The final machine may still sell at a loss initially, but it won’t be hundreds of dollars, and therefore it will become profitable more quickly. That’s not to say there’s no chance it won’t ship with a profit margin included in the price from day one, either.Microsoft is also expected to ship with a similar x86 hardware solution, but will its manufacturing costs be on a par with Sony’s? A lot depends on how Kinect is integrated with the new console as inevitably that could cost more to include.The good news for consumers is there’s already a lot of pressure on Sony to ship a machine at a lower price point than the PS3 did. This is due both to the poor state of economies around the world at the moment as well as increased competition from cheap(er) games hardware (Ouya, Steambox, tablets, smartphones). Microsoft and Sony going head-to-head with release dates is also going to make price a key marketing tool, too, which again benefits the consumer as whoever is lower has an advantage.Now read: Sony’s 15th anniversary Gran Turismo event to reveal new game detailslast_img

Leave a Reply

Your email address will not be published. Required fields are marked *