Sony will sell the PS4 at a ($60*) loss.

[looney]

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Sony's new PlayStation 4 hardware will sell at a loss.

This was confirmed by Sony senior vice president Masayasu Ito.

PlayStation 4 hardware will make a loss at launch, but Sony expects to immediately recoup the costs when a typical user also buys a PlayStation Plus subscription and at least one launch game.

Eurogamer sources speak of a $60 loss for every $399 system sold, though Ito did not confirm that number.

Sony, as stated in the quote, counts on games and PS plus subscriptions to make the PlayStation 4 profitable.

Microsoft already stated earlier this month that they will make a profit on their $499 XBOX One hardware.

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Source(s) / Full article:

Original article: http://www.eurogamer.net/articles/2013-09-20-sony-expects-to-recoup-playstation-4-hardware-loss-at-launch

Dutch news post: https://tweakers.net/nieuws/91416/sony-verkoopt-playstation-4-met-verlies.html

[M-ursu]

Smart move from Sony!

[Gabriel]

i do not believe this, this sounds too stupid to be true and sony as we've see aren't that stupid but definitely something Microsoft will do.

[Damikiller37]

Their plan is just to get as many customers on their side because of the "affordable" price point and then suck money out of them when they already got the console. Where Microsoft may earn on each console and maybe do better deals than Sony since they will have more money to play with. At least that's my point of view.

[linusforsell]

The loss will be temporary until the price of manufacturing drops, shouldn't be a problem to cover with the push for Plus memberships over time. Great move to make the console hit a much more attractive price point than the XBone.

[looney]

i do not believe this, this sounds too stupid to be true and sony as we've see aren't that stupid but definitely something Microsoft will do.

I believe they already did it with the PS3.

Like they say, one PS Plus subscription will break it even and a $100 difference between XBOX and PS is very compelling.

[sonarctica]

I really doubt that, pics or didn't happen

[Guest GRRigger]

well with subscription  your overpay it anyway. if you counted that in, the 460 dollar console cost you over 700$ in 5 years

[ComputerNoob]

Their plan is just to get as many customers on their side because of the "affordable" price point and then suck money out of them when they already got the console. Where Microsoft may earn on each console and maybe do better deals than Sony since they will have more money to play with. At least that's my point of view.

With the xbone, and xbox360 you have to pay more each month then you do with playstation plus, and you don't get games each month.

[Emperor_Piehead]

There are a lot of cheapos who would rather pay $400 then get the xbone for $500 and sony knows that.

[ComputerNoob]

In my opinion consoles are stupid. They say these consoles will last 10 years, meaning you would have to pay 400 bucks + 600 bucks for ps+. You are paying that for consoles that is struggeling to hit 1080p on launch titles. The so called "next gen consoles" are quite garbage.

[looney]

Remember guys, its not the first time they supposedly did this:

 

The PlayStation 3's initial production cost is estimated by iSuppli to have been US$805.85 for the 20 GB model and US$840.35 for the 60 GB model.[174] However, they were priced at US$499 and US$599 respectively, meaning that units may have been sold at an estimated loss of $306 or $241 depending on model, if the cost estimates were correct,[175] and contributing to Sony's games division posting an operating loss.

[Snickerzz]

Haha, idiots...

syvYzVf.gif

how? They make money from ps members and from game licensing...

[M-ursu]

how? They make money from ps members and from game licensing...

Still, think that money loss.

(they just could earn lot more)

[brownninja97]

Well they do make their money back if the xbox one sells a lot due to the blue ray drive issue.

[Snickerzz]

Still, think that money loss.

(they just could earn lot more)

not necessarily, just because they arent making money right away doesnt mean they wont down the line, lowering the price point makes it more affordable to more consumers and makes it seem like a better choice than its competitors. More customers, more ps members, more games sold

[Kayn]

Not really surprise since most of the money is coming from games, accessories, and now PS+ subscription.

 

OT: I see that schnitzel in the tags

[Guest GRRigger]

In my opinion consoles are stupid. They say these consoles will last 10 years, meaning you would have to pay 400 bucks + 600 bucks for ps+. You are paying that for consoles that is struggeling to hit 1080p on launch titles. The so called "next gen consoles" are quite garbage.

something like this, yes.

considering you can build entire gaming system with all periferals under 800 bucks... and cheap games... fully functional PC and Monitor... free online... mods... communities...

no-brainer. not to mention you can allways upgrade your gpu ( 7870 is like 160 bucks when discouts or rebates )

not to mention you can play with gamepad in your living room with PC also...

[kuddlesworth9419]

Not surprised. But it doesn't matter in the least. Sony will make their money back when everyone buys 1 game at launch.

[Guest]

cheaper console but you have to pay same amount as xbox to go online then they rake in more sales because its pretty much the same console if the average person(like my dad)will not know the difference because they are both consoles and do the same thing

so they will get more people buying ps3 so more of their paid services and games get used

[Guest GRRigger]

not necessarily, just because they arent making money right away doesnt mean they wont down the line, lowering the price point makes it more affordable to more consumers and makes it seem like a better choice than its competitors. More customers, more ps members, more games sold

yep. if sony manages to sell twice the consoles, it means for instance in first 5 years ( i made up numbers):

25 million of xbonex sales that buy online for 5 years :5 x 50$ sub = 250$ so 25.000.000 x 250 = 6.250.000.000

50 million ps4 sales that buy ps+ online 5 years :6250000000 x 2 = 12.500.000.000

Big part of a very big cake I say.

[crunzaty]

i do not believe this, this sounds too stupid to be true and sony as we've see aren't that stupid but definitely something Microsoft will do.

They did this earlier with the PS3 as other people said but the reason why they did this was so the next big thing could/would be Blu-Ray and not HD-DVD. It's a LOT of money for just making that a thing. But it's a big company so their money will be back quite fast if they continue to make games like "The Last of Us" & "Uncharted".

 

But who cares, it's profit at the end. Also Microsoft pays Sony for every Blu-ray player they have too ;D

[RespawnCake]

That's probably a reason why it isn't high end hardware in it like x360/ps3. Subsidized cost,rrod etc. 8 years ago yhey tried to make console that would beat high end pc but it was too costly and had many problems.This time they're smarter

[ciprian97pop]

Remember guys, its not the first time they supposedly did this:

 

 

 

I really doubt that, pics or didn't happen

 

 

i do not believe this, this sounds too stupid to be true and sony as we've see aren't that stupid but definitely something Microsoft will do.

They aren't the only company that selled at loss

Xiaomi selled their mi-2 at loss. they sold batches of 100.000 phones in seconds and on every phone they lost about $60

They didn't actually lost money, everything nowadays is a marketing strategy

[ComputerNoob]

something like this, yes.

considering you can build entire gaming system with all periferals under 800 bucks... and cheap games... fully functional PC and Monitor... free online... mods... communities...

no-brainer. not to mention you can allways upgrade your gpu ( 7870 is like 160 bucks when discouts or rebates )

not to mention you can play with gamepad in your living room with PC also...

Steam sales!!! and humble bundle