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Sony not expecting major losses with launch of the PS4

Sony CFO Masaru Kato says that they do not plan to take any major losses with the launch of the PS4, in part because the company is currently struggling to maintain profitability and possibly because the PS3 business model didn't exactly make investors any wealthier.

The launch of the PS3 was definitely a famous one among gamers but for all the wrong reasons. It feels like just yesterday Sony took the stage to announce to the world that they will sell their console for 599 US dollars. The worst part of it all was that with each console sold, Sony was taking in major losses. This was one of the many contributors to Sony’s dire financials the last bunch of years, but recently, things seem to be turning around, and Sony seems to have learned from their mistakes.
During an earnings call that took place today, Sony’s CFO Masaru Kato said:
"Unlike PS3, we are not planning a major loss to be incurred with the launch of PS4…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. 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."
With the PS4, Sony has moved away from this cell technology which was the cause of a lot of headache, and will now utilize an x86 architecture that is much closer to regular PCs. AMD will be providing the technology for not only the PS4 but for the next Xbox as well.
Before people begin to speculate on a high launch price because of this news, it should be noted that Kato stated that Sony would not incur major losses, the keyword there being ‘major’. They may still sell the console at a small loss in order to keep the price as competitive as possible, the difference is this time there is a much less chance that it will contribute to the sinking of the company.
Source: Eurogamer Via: Polygon

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