Sony says PS4, unlike their previous consoles, is "already contributing profit"

Sony president Kaz Hirai validated statements made before the PlayStation 4's launch about making a more profitable console than the PS3.

Speaking today at a corporate strategy meeting, Sony president Kaz Hirai said that the PlayStation 4 is "already contributing a profit on a hardware unit basis."

Reported by Japanese site AV Watch (via NeoGaf), a Sony representative provided GameSpot a translation for one of Hirai's most interesting statements from the meeting. "From a profitability perspective," Hirai said, "PS4 is also already contributing profit on a hardware unit basis, establishing a very different business framework from that of previous platform businesses." It's a slightly roundabout quote, but that statement essentially says that the PS4 is already profitable, unlike previous console generations that are typically sold at a loss for their first few years.

This lines up with earlier comments from Sony prior to the PS4's launch that they did not expect their current-gen console to "generate losses like they did for the PS3."

While the strategy meeting focused on Sony's business as a whole, Hirai also mentioned that over half of PS4 owners subscribe to the PlayStation Plus service, which lines up with previous projections earlier this year. Sony recently opened up beta invitations for the PlayStation Now game streaming service to PlayStation 4 owners, and Hirai noted that Sony plans to "introduce a new, cloud-based television service within the calendar year 2014."

According to the AV Watch article (as translated by GameSpot), Hirai said that, given the success of both hardware sales and network services, "The PS4 is likely to generate more revenue than PS2."

As of April, Sony announced that the PlayStation 4 had sold over 7 million consoles, though we'll likely hear even more about the system and what Sony's plans for further audience expansion at this year's E3.

Justin Haywald is a senior editor at GameSpot, and you can follow him on Twitter @JustinHaywald

Got a news tip or want to contact us directly? Email news@gamespot.com


Written By

Senior Editor, Earthbound fan, and snazzy dresser.

Discussion

466 comments
Arsyad00
Arsyad00

good 4 them, more free games plox

gunnmetal
gunnmetal

look at my new ps4 with nothing to play

gunnmetal
gunnmetal

lol everyone bought the wrong console

BlackBaldwin
BlackBaldwin

I hope this doesn't lead to sony putting out weak next gen tech for generations to come..

DirkXXVI
DirkXXVI

Good for them.  PS4 seems like a great balance between power and affordability so nice to see that its not the money pit it used to be.  With that said the only thing that worries me about Sony dominating Microsoft at this point is that they might become complacent.  I imagine that a lot of the great first party exclusives from Sony last gen were a product of trying to get the PS3 to catch up to the 360.  

theKSMM
theKSMM

I wonder if they expect the PS4 to beat the PS2 in hardware revenue alone.  It may end up being more profitable thanks to the recurring revenue of PlayStation Plus, but I can't imagine it being the PS2 in game sales...not unless they're going to keep selling the PS4 for ten years.

I'm looking forward to PlayStation Now (on all consoles) and the arrival of the Vita TV and 64 GB memory cards in the U.S.

dannydopamine8
dannydopamine8

Good they deserve profit, they gave the people exactly what they wanted without any leg pulling **coughh* microsoft

gunnmetal
gunnmetal

all the pownies are gathering hailling to all mighty sony but when will we get games? they ask. not until sony the master powny receives all the monies.

lilj2626
lilj2626

YEA well Sony learn u DONT pice ya system jus wateva n figga it to sell???$600 fa PS3??dat was Slf inflicted n STUPID so im glad dey learn to price it rite???da NeoGeo frm bk n da 90s was DAT price??3DO dat Panasonic made was $700???All companies say n Do STUPID ish just gtta hope dey learn??Ps3 sTil did gud sellin 80mil n da Ps2 sold 150mil??Ps4 doin ju FINE so far sadly Xbox fina catchup cuz Sony aint listen i told yaws drop da price cuz MS tyna figga HOW to catchup wel dey Did??sooo lets watch wat Sony do

thekey
thekey

Of course it is it's selling well.


nyran125tk
nyran125tk

so if their other consoles werent making a profit, who funds them to start creating consoles? Do they borrow off the bank or something? Or is it private investors?

Opus_Rea-333
Opus_Rea-333

You can build your own PS4 if you go to Newegg dot com, just like Sony did with PS4..


PC gaming is prettier than PS4 plus you can apply mods to further enhance your experience.

adub424
adub424

Sony is getting cloud services that is great for everyone. With the manditory Playstation Plus service they will turn a profit on PS4s. Microsoft should introduce a manditory online service package to keep up with Sony. I wonder I'd we will get as women and weird Japanese television shows on the Playstation television content.

onixevil
onixevil

30 million units should be a near hit .

Heil68
Heil68

When you are living the by gamers for gamers mantra like SONY is, this is not surprising. 


not_thebigo3d
not_thebigo3d

Wow they must be getting some deep bulk hardware discounts. 

mikemaj82
mikemaj82

Only suckers believe these giant companies don't make a profit.

ooblah
ooblah

Another boring news day.  Which is a bummer, because it's Friday, and we're not likely to see anything new until Monday.

oflow
oflow

The financial news states otherwise.  I read they are still taking a $60 loss per PS4 sold currently.

chunkbasker
chunkbasker

@gunnmetal nah Microsoft consoles are garbage.  They've been since xbox-360, I will never e ver buy another one of their poorly made garbage boxes.

Aaronp2k
Aaronp2k

@DirkXXVI I wouldn't worry. Sony has a great track record for first party games ever since ps1. can always count on sony for good exclusives.


kingdom hearts

tekken

syphon filter

god of war

uncharted

crash bandicoot

last of us

infamous


only a handful of great exclusives from ps1, ps2, ps3 and ps4 off the top of my head. 

gunnmetal
gunnmetal

@dannydopamine8 yeah thats what exatly? because if you look at it sony raised the price 50$ in canada and theres no games with it and there are like no good exclusive so whats the point of all these machines out there with no software or updates or even you know just feedback to pownies in general.


vivvianni
vivvianni

@gunnmetal

When can I get sh1tbox one games? It's ok if it's only 720p 15fps..

b3gv5m63
b3gv5m63

@Opus_Rea-333

not many of us are rich. if i want to get a gaming pc. i get the best because thats the point of gaming pc. right? better graphics. which would cost about 1.5k 

Albaficas
Albaficas

@Opus_Rea-333 i dont give a fck

i get console cause they have the better IP and not graphics deal with it already


go back to dota now thx


McGregor
McGregor

@adub424 Microsoft doesn't need to introduce one...They've had theirs since 2002

quincya
quincya

@adub424 Microsoft has a mandatory system already is called "Xbox Live".

jayjay444
jayjay444

@_williamwallace LMAO, i'm Scottish and I loved that comment. Feedbackula (w/e it's called) would have a field day with comments like that :D

dfuknb
dfuknb

@not_thebigo3d Its probably because they are selling systems at a $25 loss give or take and then PSN is being bought by 50% of the owners which covers that cost. Not to mention accessories and Digital Downloads. Im just waiting for /Sony, Dish or one of the Cable providers to open up the PS4 with a VOIP service app. I don't care if its a 15 min delay from Live TV. I will be happy.

not_thebigo3d
not_thebigo3d

@mikemaj82 The generally don't make profit on hardware. The real money is usually on accessories and games

dfuknb
dfuknb

@vladric Design is sleek on both XB1 and PS4 but the PS4 wins in the Size department. XB1 is just too massive. As for my PC....NZXT always looks sweet.

jayjay444
jayjay444

@oflow Their making a loss alright but it's $8 maybe $20 per console and what they lose they make back+ profits from PS+ being mandatory. 

Dannystaples14
Dannystaples14

@oflow In total of the company. There is no way they are making $60 per PS4 loss just with Playstation by itself.

gunnmetal
gunnmetal

@vivvianni its not tho checkout wolfenstein its 1080p 60fps and oh wait it looks better on x1 haha keep at it son. youll eventually come out of your moms basement.

McGregor
McGregor

@b3gv5m63 @Opus_Rea-333 It's more up front (but not 1.5k). I just did a build for my friend, and his PC came to $800. he even went high end on stuff that I usually save on ($120 fractal case vs my $40 nzxt). Ultimately, he'll save more money over this summer and have more games to play than he would if he went ps4 or xb1. I'll bet by the end of summer he'll be dead even for the amount of games and cost (well, he'll be more than even, he'll actually have more than 4-5 games to play).

nyran125tk
nyran125tk

@b3gv5m63 @Opus_Rea-333 no, the graphics are amazing, sure, but thats not the only reason to use a PC for gaming. Theres tons of reasons that make PC gaming so damn awesome, the sheer amount of backwards compatability is just 1 reason. You never have to worry about backwards compatability ever again. The loading times is considerably faster on PC to. Like SKYRIM and fallout and Oblivion for an example. No loading times, it wont have slowdowns, or serious fps drops. 


but yeah, it is more expensive for the initial PC build, but after that its cheap as hell. Like $5 for farcry 3 kind of cheap.

gunnmetal
gunnmetal

@vivvianni @vladric the x1 looks way better. its got chrome styling and its not matt and generic asb plastic like a stupid insignia remote that the ps4 is made of, but nice try, vivvianni you can go back to sitting on your dragon weener


oflow
oflow

@Dannystaples14 its all too little too late anyway. Sony rested on their laurels from the 80s and then made a long series of bad management decisions.  Sony has been losing money for 10 years straight.

Their new plan is to spin off the other divisions so they dont drag SOE and PS down, but they are banking heavily on 4k TVs as their saving grace which will fail miserably.

No tv stations in the US market will even be broadcasting in 4k within the next 5 years, so even if the cost of 4k tvs comes down, theres still no real reason to even buy one. 

I work for a major entertainment provider in LA and I know a number of people that have been laid off from Sony, none of them have good things to say about their management.

Sony needs some kind of game changer to bring them back, like how the Walkman blew them up in the 80s.  4K tvs arent gonna do it.


Aaronp2k
Aaronp2k

@nyran125tk you forgot to mention pc games are at least £10 cheaper than the console versions, so you save money on games in the long run also.

nyran125tk
nyran125tk

@FengShuiNinja @nyran125tk tell me which 20 yr old game you are talking about and i guarentee you 150% i can get it to work, easy. Use DOSBOX. I havent had a single game i cant run. Even Star Wars W-Wing and Tie Fighter windows 95 edition you can run, you need the patches though.

FengShuiNinja
FengShuiNinja

@nyran125tk Backwards compatibility? Try getting a 20 year old point and click adventure game to run on Windows 7/8! :O

Dissentioncc
Dissentioncc

Not surprising. They probably banned you because your posts hurt other users brains.